HARDMAN RESOURCES (HDR) Direct quote from Quentin Cameron's Oil and Gas Bulletin
The bulletin had little choice than to make HDR its TOP BARGAIN after some of the interesting things it has been hearing about Chinguetti from what it believes are reliable sources. Firstly, that if the rather ordinary oil flow rate from the first production test, which was through a just under ½ inch choke, is converted to an equivalent flow through standard 8 inch production tubing, the converted flow rate works out at more than 30,000 barrels a day. When the bulletin queried this figure it was told to check it out with any engineer, and they would confirm it. Furthermore, that when the sand intake was controlled, a 30% greater flow rate could be expected. The source spoke of flows as high as 50,000 barrels day. Further intelligence is that the wildcat planned as the second well in the current drilling programme is to be bypassed in favour of a second Chinguetti appraisal, with a probable spud date of Sept. 17, which could add a further 50 million barrels of recoverable reserves to the current minimum estimate of 120 million barrels, if the same sands are present. On the corporate front, the talk is that Woodside wants to increase its stake in Hardman from the present 11% to around 30%, and that a share price of $2.50 is not beyond the realms of probability for Hardman a little further down the track. While the bulletin is sure most subscribers will laugh at these figures, it still feels they should be passed on. How they treat them is naturally completely up to themselves, but it just could be that the market is badly misreading the situation.
HDR Price at posting:
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