chinguetti pumping 14,250 bbls/day for hdr, page-3

Conix,

As H rightly pointed out, it's only pumping at just over 50k bopd at the moment. not expected to hit peak production of 75k till around mid-April (at the earliest - assuming good reservoir response).

As of now the price of Brent crude is $US61, so if we assume $US60 ,at the current exchange rate we gain an idea of the revenue to HDR in a few weeks time.

We can't assume US60... Royalty entitlement to GoM, tax, etc. Actually, there probably won't be much tax paid for a few months while they recoup all past E&P capex. But bear in mind that this will be the first lifting from Chinguetti. As has been mentioned several times in the past, they won't be able to sell those oil for spot price - there will be some discount applied until a stable trend of production is established and quality of crude is known. Discount can be up to US5 to US10 depending on terms of sale contract.

Numbers won't add up to quite as rosy as yours, but it will be significant nonetheless.

Cheers,
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