Yes it is going to be good out there but it will take time. I dont see the price softening because the runs are on the board but there is still a long lead time till production. Perth basin success would give HDR a kick a long. Long term hard to see anything wrong with HDR, capital dilution will be kept to a minimum. Short term there are better opportunities with higher risk. WPL will probably battle it out with AGIP eventually for HDR but they will try to strangle them first. Of course by that time with more success on wildcats (say one comes up in a Dana block or another tie in to Ching with some size) and production time drawing nearer they will just have to pay more. I find it hard to worry too much about HDR from here but there may still be some volatility which one should consider exploiting, (say in drill time) but less and less so. The up and down rampers and traders will drift away as it offers less volatility and the instos will drift in. Nice steady upward drive probably barring a major catastrophe. Then the HDR faithful who at times have been over exuberant about the value of undrilled leads(they dont really get paid for till enough of them are proved up) will get their dues. In the meantime,well it didnt rise as far this year and didnt fall as far either sit tight because it is a very strong upward channel if you look at the long term chart. Nothing better than a stock that it is worth 4 or 6 times in 2 to 3 years. The $10 story well that is probably quite some time off but not out of the question if HDR stay in and the driling POS improves in Mauritania as they all get to know the area better. My opinion only but I know a lot of the less sensational posters have been saying pretty much this for some time now.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held