hardman in a nutshell

HARDMAN IN A NUTSHELL (HDR)

For the interest of those not really up with HDR et al.

Potential.
„h Very big reserves already established and a lot of understanding has been acquired of the geology and Seismics around offshore Mauritania.
„h 100% of Miocene targets to date have been successful.
„h Enormous potential reserves remain incl. 30-40 salt domes in Mauritania province alone plus other exploration areas with similar structures.
„h 2004 will have 10-11 additional wells which are bound to find more reserves.
„h Tiof is huge and certain to presently be understated. More Tiof wells this year.
„h Pelican is a huge gas find on top of a stucture ¡§hill¡¨ therefore step out wells may well find a huge oil basin under the gas. We should know this year.
„h HDR has other GREAT exploration licences. Eg:
Uganda ¡V Lake Albert. Heritage has already found oil. Hardman is adjacent.
Guyanne. The Matamata ¡§elephant¡¨ on good looking structures. A farminee is assured.
Also Gabon, Etritea, Malta, Timor and others. - Altogether valuable licences
„h Excellent management along with Woodside technically.


Profitability
„h Huge Chinguetti cash flow next year (2005) using FPSO vessels (floating,production, storage, offtake)
„h Oil prices will probably remain high.
„h British Gas (BG) now offers a second agenda. (Very large LNG development.)
„h FPSO vessels allow global spot price deliveries.

Financing
„h Present cash in bank will finance 2004 developments and then some.
„h Now likely to be popular with capital lenders. Eg ANZ bank, World Bank etc.

Share price
„h Stock market re- rating by institutions.
„h A certain take over candidate.
„h Without getting carried away with euphoria ¡V the price got to $1.40 without much trouble recently therefore with all the good things coming another $1 doesn¡¦t seem unrealistic inside 12 months (???) (Hows that for scientific assessment!!!!)

Short term activities
„h Fast track Chinguetti and Tiof for cash flow

Negatives
„h Sovereign risk and political instability. (However the oil facilities offshore must assist with security.) A large LNG plant onshore is however another matter.

Observation
„h This sort of emerging situation has undoubtedly occurred before in the past therefore it is worth considering how the present/potential market capitalisation compares with other similar success stories.

Question
„h What have I missed ?