email to dean, page-8

G'day mookie- The biggest worry is the lack of market activity or should that be a comfort?. I understand the risk of drilling and can assess risk / probabilities if I get the numbers but am a bit blind at the minute.
Worried as I am sure I don't understand the partners strategy as we have no access to the full partnership agreement or complete details on royalties etc. Worried as the market has hardly reacted. Although I was given some hints (edge of nowhere drills) that it was not expected to be a definate gusher the lack of market activity means the majority of bigger holders were happy to take it in their stride. Just what have they been briefed on that they are comfortable to sit and not trade.

The only comforting factor is that it seems the spread of shareholders has matured and locked away some trading stock as investment stock in preparation for Feb production as a reasonable risk investment even on old $40 oil valuation.

It seems we have a more mature bunch of holders and the lesser volatility is killing part of the warrant option and CFD game which in itself bred voatility spikes and whip-sawed on every T/O rumour or tit bit news self perpetuating the vol. The CFD market has matured somewhat in the last 12 months and HDR seems to have as well and is not acting like a piddling junior.

I occasionly spoke to and understood Ted who was lucid on the raw facts when not doing roadshows to raise $ and I understand it is always hard to "learn" new managements methods. The partnerships communication is attrocious and HDR individial releases on other activities (we used to see them) need a lot more info than what's provided.

One of the partners is the inexperienced Mauritanian Govt backed by a worldly financier so it is not as if there is too many secrets to hide now but little real information is out there. Can't think what they must be thinking.

Comments like 85% complete for the offtake platform and infustructure are next to useless unless you know if the last 15% is the 85% of risk end of the business- ie dockside system testing, transit leg, hook-up of turret, flow, ramp up, emergency testing, staff training offload trials, live testing etc. This last 15% carries majority and significant implementation risk but the partners are putting out soft vanilla announcements. Can't wait to see real flow rates and actual throughput after ramp-up.