Finally extracted it. Interestingly, in today's broadcast notes the html version takes me to October 15 while the html link is dated October 8. Anyway here it is.
Chinguetti 4-5 well - results not expected until late next week With regard to its Chinguetti 4-5 well in offshore Mauritania, HDR has advised that the results of production testing are not expected to be available until at least the latter part of next week, due to minor operational delays. HDR has identified a gross hydrocarbon column of around 100 metres in the current well, which is in-line with our pre-drill expectations and compares favourably with gross intercepts of 94 metres and 114 metres in the two previous Chinguetti wells.
Impact Interest will now focus on flow and production testing - the first that has even been undertaken on the Chinguetti structure. The flow of oil at stabilised rates has the potential to excite the market, although we believe that developments so far underwrite the current HDR share price. Development proposals for Chinguetti indicate that a FPSO will be used and that at least six production wells (possibly more), will be drilled to achieve a production rate of approximately 75,000bopd. Total development cost under this scenario would be US$400m of which HDR's share is 21.6%. We believe that the current results from the Mauritanian programme are sufficiently good to support the HDR share price at around the $0.70 level. Additional upside will depend upon the results of production testing from Chinguetti. This is just the first of at least four wells in Mauritania. Three successful high impact wells in Mauritania to date have highlighted the potential. HDR is highly leveraged to further success in this emerging hydrocarbon province, but it will probably require the confirmation of another wildcat success to really see significant and immediate price upside.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
