hdr agm -questions answered ?

Hi all
Just back from AGM and haven't had time to put together a complete overview of meeting but here are a few points of interest to chew over

All resolutions were passed

No real surprises but a lot coming out next year.

Main point of interest: HDR consider the announcement of commerciality due end December / early jan will shift the SP up and I must agree with this.

Question: Is it likely that a fourth well will be drilled this year
•If so, which block is preferred

Answer: Pelican will be spudded within next two weeks.

Question: Is HDR intending to divest any of it’s equity within the next 12 months. i.e. outright sales or farm-ins
•If so which blocks might be sold/farmed out and what would be the likely deal structure

Answer: HDR will farm out wells that are difficult but wells such as Tiof and Ching etc they will do themself
They will farm out some of the Timor Sea acreage

Question: HDR share price has not responded to this year's successes?
•Who are the major sellers of HDR shares.
•Have recently exercised directors options been sold on market
•Has Macquarie been a prominent seller to prevent the December 2003 warrants being taken up. or are the sellers those investors/institutions that participated in the last discretionary 15% placement

Answer: The market doesn't really understand HDR. That’s why the SP is down.
Management does track sellers/buyers but didn't offer any details .
Management agreed that Macquarie might have added to selling pressure.

Question: Are further placements or Capital raisings required to finance next year's drilling in Mauritania, and other capital requirements for Gabon, Guyana and Uganda
•If so, will they be in the form of a rights issue or another discretionary 15% placement
•Would Macquarie be involved in any further capital raising given their possible interest in seeing a lower selling price (i.e. their outstanding HDR warrants)

Answer: In the past the market forced management to get what financing it could and required a discount to market. They are now in a far stronger position and any future deals would be structured more in HDR's favour.
Wouldn’t elaborate if they intend doing a further placement anytime soon.

Question:HDRs estimated share for the capital development of Chinguetti is around US$86 million. Is HDR still on track to Debt Finance their share of Chinguetti Production costs

Answer: They put up a slide on this and all looks to be going as previously announced.

Question: Given the recent attempted Coup and election in Mauritania, how does management perceive the Sovereign risks of investing in Mauritania,

Answer:Ted felt it was just fine and said the elections were all overseen by US observers and government is now firmly in control

Question: Why should HDR management get millions of "incentive" options when the share price has not improved in 2 years ?

Answer: Company prefers options to paying higher salaries and has done the best it can. Alan said the directors that sold their converted options/shares did so for private reasons. This was not well received by attendees.

Please feel free to ask any questions and I will try to answer .