abn amro recommendation, page-24

re: abn amro recommendation - olive - hardmano Report can be summarised as saying HDR has the biggest leverage to drilling success, this year's drilling could add a conservative $1.47 to HDR's sp and they have changed their recommendation from Reduce to Hold. I think their oil price and other assumptions are conservative and I'm not sure what value they have given to Tiof or their assumptions on its size (in their current base valuation of $1.79).

Its a good try - but I still think HDR is difficult to value in this way, and that the mareket's response to discoveries will be vastly greater than what this report suggests.

H