That would make for several P&A failures on HDR's part, despite their cautionary tales of progress.
Is this a case of HDR just not getting it right, or of the market expecting more than what HDR can genuinely deliver?
The Canaccord research renders a limited value accretion on account of Woodada (success or failure). So why would HDR be sold down because of this?
Woodada is already a producing field and will continue to be so for some time to come.
The hydrocarbon /background gas readings have been evident for some time (ie: >100m in drilled depth). So either this means that there is gas there somewhere, nearby, in the next hole to be drilled, or deeper down, or that HDR has been pulling punters' legs all this time.
For HDR, Woodada is a confirmation play, not a discovery play.
Therefore, I do not expect the HDR price to fall back or greater change on account of the eventual Woodada results (good, bad or indifferent).
I do, however, expect HDR to improve its credibility into the future and to stop teasing the markets with its little announcement plays.
The recent AIM listing will, therefore, ensure that proper professionalism and accountability abounds in the future.
As for myself, I do not hold HDR, although I held a small smattering of the stock last year when Stocko was keeping all and sundry informed of drilling progress on a daily basis.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
