My mini calculator works this way:- Three existing fields= approx 600mmbls,(HDR share 21%,126mmbls) Price per bbl around US$7, (up from US$5 to reflect the new energy world order of north of US$30 bbl spot pricing)=A$10bbl Multiply the above=$1.26 billion, divided by 650m shares on issue, equates to around $1.95-ie the current price near enough. My undertanding is that the proposed programme has 5 wild cat areas- if we assume the target is around 200mmbls in each instance, success to HDR would represent 42mmbls and using the above pricing strategy,equates to around 65cents per HDR per success. If only two come in,(and WPL is very confident), HDR could be around $3.25-ie current price plus two times 65 cents. If three come in, well you have just doubled its value. All of this ignores the other exploration interests elsewhere as well as inside the Mauritania blocks on targets still to be tested. Looks like an attractive punt over coming months. Cheers,TAS
HDR Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Not Held
