I have said in the past postings that I thought that HDR was...

I have said in the past postings that I thought that HDR was running out of cash. I have been doing some digging and come up with the following:-

1) As at 31/03/06 in Mauritania HDR had net debt of US$9 million

2) Their commited spend for the rest of 2006 on all projects was US$80 million

3) Committed spend for 2007 on all projects was US$90 million

4) Loss on last financial year ending Dec 2005 was A$ 29.1 million

5) Net cash at Dec 2005 A$36 million

6) In last 5 years HDR have spent US$ 300 million on The Ching Field. That averages out at US$ 60 million per year

7) Current Income from Ching US$ 342,000 per day. 20% of 30,000 barrels * US$ 60. = Annual income of US$ 124,830,000. Now for every US$2 they get out of their only cash producing asset they are ploughing back US$1 into Ching on average

8) That leaves just US$60 million or US$1.15 million dollars per week to run the rest of the business

In view of the above I will say HDR may have been asset rich but they were IMO cash poor

There is a possibility of selling off some of the assets if you can find buyers. That was not achieved to date so we cannot debate that to a successful conclusion

Guyane- Mr Potter seems to have been seeking a farmin with suitable rig equipment. Perhaps that was the stumbling block none of any interested parties wanted to take on a heavy financial outlay. Be fair do not know on that one.

Why did he not try to sell off Uganda? Perhaps nobody wanted a half share in just one block

Finally the no talk clause oh yes you can see Tullow saying you want my money you part is sealed lips otherwise I am not interested

Please attack any part of the above I have put it together with an open and fair look at the figures available to myself

My view is that following the London placement I do not believe many bank managers would have been to keen to extend a further credit line when faced with the above picture