Angers has covered the prepared questions and the presentations...

Angers has covered the prepared questions and the presentations available on the HDR website cover a heap more information, so I will just focus on stuff that may otherwise slip between the cracks

1. HDR close to announcing 2 new assets.

2. Mputa-2 now near top of target zone, currently coring to allow correlation with other wells.

3. If Mputa-2 has a good result it may mean 200-300 million barrels recoverable for the reservoir.

4. 3 more wells due in Uganda this year.

5. Capital raising. Done in the UK to get fresh investors. 3 times oversubscribed.

6. Chinguetti problems. Northern wells not in good positions, but hard to site due to steep slope of underlying strata. i.e. hard to avoid getting too close to gas cap or too close to water level. One of the northern wells was poorly placed out of the main channel, while the other one was drilled too close to the gas cap. Simon stated a couple of times that people needed to remember that the “molecules are still in the ground”, that is, production may be down, but reserve estimates have not diminished. The oil will come out, it will just take a bit longer to get it.

7. FPSO issues. Berge Helene has not been able to load Very Large Cruse Carriers (VLCCs) up until now due to issues with fouling flow lines. Despite BH having a capacity of 1.6 million barrels, they have only been able to offload 900k barrels at a time. This has now been rectified meaning that larger tankers can now accept cargoes.

8. Tiof development concept. Expected to be a Tension leg Platform or SPAR with integral drilling capability. Phase 1 to access 40 m barrels from 6 wells @ 50,000 bpd. Possibly linked to FSO for storage.

9. Guyane. Bids received for farmout and currently under evaluation. Farmout announcement expected before end of quarter 2 this year. 2006 drilling probably not feasible, 2007 likely. HDR will probably end up with 40% after farmout, but although unlikely to be the operator, will retain control through the framing of the joint operating agreement. Basically I think HDR has realized that they are not big enough or experienced enough to be the operator, but that they have some farm-in candidates who are. Drill program will probably be done in conjunction with other companies (e.g. maybe some doing offshore drilling in Surinam) to reduce costs.

10. Gas agreement. HDR will continue to encourage WPL to get a gas agreement in place, however Simon stated that gas agreements can be complex and take a lot of time to finalise.

All in all it was a good meeting, Simon did an excellent presentation and was more relaxed and confident than the meeting last year. He is putting his stamp on the company and I think his program of diversifying the assets and raising capital to put the company on a firm footing financially is a sound one. The new directors seem capable and experienced, so I think the board is also shaping up well.

Thats all I can think of at the moment, if I remember anything else I will post it later.

Pacey

Pacey