At the risk of upsetting some of our more conservative and contrarian HC posters, here's some numbers to salivate over.
Chinguetti = 150 mmbls Banda = 100 mmbls (could be 200) Tiof = 250 mmbls (could be 450)
So far = 500 mmbls
Now someone made a statement from the joint venture along the lines of ... " If oil is less that $25 then these deep sea plays are not economically viable" So, lets assume the producers want $10 profit. That leaves a net production cost of $15. Assume oil remains at $35-40, therefore producers profit = $20+
Therefore 500mmbls x 21% x $20/650,000,000.
That gives HDR a value of $3.20
And that's a portion of Block 4 Mauritania only.
That's means $1.98 is seriously undervalued folks.
HDR Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
