HDR - 133 m Hydrocarbon Intersection, page-10

wisenut

Both John Akehurst and Ted Ellyard say it is very encouraging for offshore Mauritania as a new oil province. You don't expect anything more from WPL. Ted says that the Banda field oil discovery is over a very large area, so my interpretation of that is that the oil at Banda is probably close to the lower end of the expected range at around 200-300 mbbl (the top of the range was 770 mbbl. This is still a lot of oil and its in shallower water and can be tied in with Chinguetti.

The wording of Ted's comments are similar to after the first Chinguetti discovery last year - congratulations all round.

I think its a good result, but the punters may exit stage right as HDR now enters a consolidation phase. Price from here on will rise more slowly so the fast money may go elsewhere.

Cheers

H