BANDA reserve estimates, page-8

Chinguetti

I thought you were into HDR and HDRO pretty seriously from your posts during last year's action. It's been a long wait since then - hopefully we will see days of > 20m shares trading per day again !! (and a rising price).

I too have devoted enormous amounts of time to researching HDR last year and since. That's why I kept buying more (HDRO's unfortunately) - it's a great story.

With all the focus on the current well and the market's response to its success or otherwise, it is easy to lose sight of the big picture - which is what attracted me to HDR in the first place. This time around there is much more happening in the near-term after Chinguetti 4-2. There's Banda (very exciting) and the the third well in Area C which HDR regards as low risk. And then there's the Block 7 JV area with Dana and WPL (drilling early 2003). And of course a possible takeover by WPL (particularly if someone else makes a move). All this makes it far easier to justify holding on tight even if Chinguetti 4-2 disappoints in some way.

There's heaps more of course - all the other prospects iin blocks 2-6 for instance. Then there's the new 3D seismic that so far has brought Banda into the current drilling program - we are in the dark as usual as to what else it showed. Then there's block 2, and down the track - the other project areas.

This has been the longest and toughest investment that I've made and I think that the story will be going on for some time to come.

I'd enjoy getting together with you and other HDR officianados - win, lose or draw.

Cheers

H