Ridge,I'm primarily interested in the potential cash flows from...

Ridge,

I'm primarily interested in the potential cash flows from this well, so using the current oil price is legitimate. If you want to calculate some alternative figures to estimate the asset value using oil-in-ground prices, I'd be interested to see the results. Even using a more conservative oil price the cash flow to HDR will be around A$15m pa. I think last years exploration costs in Mauritania were around A$30m, so the cash flow on this Australian well could cover a significant chunk of future exploration costs.


Hardmano,

If the market didn't make mistakes smart people couldn't get rich. Companies always gravitate towards their intrinsic value. For HDR that value is significantly above the current share price. Personally I hope HDR stays low for another 12 months to allow me more time to accumulate.