re: auscan ? some amount of early payment is probably needed by the Government since in a sense they don't yet own their 12% share of Chinguetti - they borrowed money from Stirling and will have to pay them with interest.
HDR may have to find $20m sooner than later, however HDR have already said they will make $140m this year at $45/bbl when in fact they may average at least $50-$55/bbl. A delay in Attwood Hunters arrival will also mean there will be less exploration expense, albeit there will be some additional costs for Uganda.
It's also been reported that the JV will recover 50% (rather than previous 60%) of cost recovery oil when oil is above US$55. This might result in some additional tax paid in early years though longer term it looks like all costs will still be deductable - at least there's nothing to indicate they won't be. Under $55, it seems the 60% recovery will still apply.
I'm hopeful that amendments will include clarification of sharing of gas at the same time so that we have all hydrocarbons covered by the agreement to the satisfaction of the Govt and JV. It would be nice to establish a gas agreement prior to Mauritanian elections in early 07. (And hopefully have found some big O&G fields by then). I'm not sure whether or not HDR sp will increase substantially in the next few days, but anyway I'd expect over the next few weeks prior to Uganda drilling when we should see 2.30+
cheers
KA
HDR
hardman resources limited
