finance, page-21

re: finance update Imho, hdr is being kept in the dark. Why?

HDR no longer has anything to offer the jv and wpl knows it.

HDR's only real value was their relationship with the Mauritania Govt. My guess is their main (and probably only) task was to keep the natives happy and monitor their intentions regarding taking up a share of the action. Sterling came under the radar with a very clever move. I’d say wpl would not have been happy to see their majority control disappear.

Now that the govt is an active partner, no more liasing by hdr is needed to keep the govt onside, cuz the locals are in boots and all -- so hdr’s value to the jv is zip.

Hdr has no management, exploration, or production expertise at this level to contribute (with or without ted). They’ve become just another pesky partner asking questions at the meetings.

So with hdr unable to provide any other assistance, why would wpl be concerned about keeping them informed? If anything, wpl would like to see hdr share price run into the ground and acquire it at a reasonable price to get back their majority. No harm to wpl, but it puts hdr’s appeal on hold, and gives the banks a few more jitters about those unsigned papers.

As for financing being a big boost, who cares - its expected so minimal impact if/when announced (wouldn’t be surprised if banks are being leaned on by bigger oil clients to string it out and squeeze hdr a bit) . New MD -- unlikely to attract a major leader as he / she could be stepping into a company that is a prime takeover target -- uncertain job life would be a drawback in attracting anyone.

HDR is a good little sniffer dog for oil acerage. But after that, I’m afraid they’re discovering they are way outa their league.