re: re hardmano mycrosoft blackscorpion 61pt8 etc Dynofish
The rationale behind the number of projects that HDR is taking on is that they are reducing risk by diversifying, both in terms of geopolitical risks by being in different countries, as well as finacial risk by having projects at different stages of the exploration and production cycle.
Simon has brought in some low risk production assets in Surinam that will give some steady cash flow from small but economical wells, as well as onshore assets in Tanzania to balance the risk of the big offshore plays in Guyanne and Mauritania.
The benefits of doing the capital raising when they did cannot be understated. They raised a large amount of money to fund exploration and appraisal for some time to come without needing to dip into loan facilities.
This has real benefits in terms of not being forced to hedge by banks and, as Alan Burns said, puts them in an impregnable position for the next few years.
So although on the surface the strategy may look haphazard, I believe that it is an intelligent approach designed to reduce the substantial risks that HDR has faced in the past. HDR has been lucky to come through some of them (such as last years coup) relatively unscathed, but it is important to structure the company so that it can weather such problems in the future.
HDR
hardman resources limited
