just a theory ..., page-21

Many thanks,

Just about Financing. My understanding is the whole cost, that being 100% to bring Chinguetti on line is $600 million.

HDR with a 20% stake needs to have 120 mio.
At last reports HDR has 320 mio in the bank.
On top of this the Mauritianian gov decision to buy in for 12% plus the 50% penalty will add some few million to HDR's cash.

My understanding from the capital raisings and announcements regarding costs is that HDR at the end of 2005 will still have USD 77 mio in the bank. It is covered in a recent release.

Once Chinguetti is on line HDR becomes cash flow positive.

Also the estimated 700 million roughly poured in when it starts ... hdr will be getting back on top of the profits around 25% for the first three years of the money it put in to bring the field on line. So by mid 2006 of HDR's 150 mio it has put in it should get back 37.5 mio plus the profits from production, being just roughly $15 on 50,000 times 20% for HDR's share times 365. Its another 54.75 mio ... in total 54.75 plus 37.5 plus the estimated 77 mio usd forecast as cash reserves by 2005. Somewhere around 190 mio.

This will probally cover tiof production share setup costs. Certainly will with it coming on line late 2007 into 2008.

May be wrong on a few things but HDR has 300 mio plus in the bank !


Cheers

They don't need money