hdr cash position, page-16

Dodds.

I have considered the two points you raised over the past few days. I have asked myself what has Tullow seen in HDR's books that is of extreme interest to Tullow and will be of interest to a third party. Yet cannot act as a catalyst for HDR.

My own view is that HDR are about to become history. But there is a missing link that has brought about this situation. A year ago the sp was setting new highs and everything was looking rosy for HDR. Now its future seems to have turned sour. But I am clueless as to what are the reasons for this complete turnaround in the company's fortunes. Have they fallen out with WPL? WPL by dragging their heels over developing new fields in Mauritania done an "ET-TU Brute" on them. Is it of HDR's own making? Should they have stuck to exploration only thereby not taking on the operating costs of oil production for another year or so. Did they have a choice. Or has fate just been unkind to them

regards