Interest buiding already this morning - 93c on the buy side but only very light volume above 84c. London brokers probably lin the market sometime today looking for shares to sell in London tonight.
The following s from todays "West Australian"..
"Signs of oil spark Arc, Hardman
By Michael Weir
PERTH'S oil and gas sector was the talk of the Terrace yesterday after two of its listed entities, Hardman Resources and Arc Energy, enjoyed significant market boosts.
Hardman shares leapt more than 13 per cent after the success of the Chinguetti 4-2 appraisal well off the coast of Mauritania. The results appear to confirm expectations the field contains about 110 million barrels of recoverable oil.
Arc Energy stock surged more than 16 per cent on the back of oil shows at the Hovea 3 appraisal well in the onshore Perth Basin, near Dongara.
Chinguetti operator Woodside Petroleum said the Chinguetti 4-2 well had intersected several oil-bearing sandstones in the primary objective over a gross hydrocarbon interval of 94 metres.
It also said a shallower zone contained gas bearing sandstones over a 3m interval.
Woodside chief financial officer Doug Bailey said the third hole in the Chinguetti program was now almost certain to go ahead. "The results have encouraged us enough to say number three is a firm well, instead of contingent," he said.
But he refused to comment on continued speculation Woodside would make a corporate move on Hardman, in which it owns 10 per cent.
Woodside became a major shareholder last year, allowing Hardman to be fully funded going into the Chinguetti drilling program.
Hardman managing director Ted Ellyard said yesterday a reserve estimate was likely after the drilling of the next well. "We are very happy with the results and they are really in line with the expectations of what we and Woodside were expecting," he said.
The first Chinguetti well in June last year intersected a gross 86m hydrocarbon column but the follow-up Courbine well did not meet expectations.
Hardman shares jumped 10¢ to 84¢ on heavy turnover of 14.88 million, making it the second highest traded stock behind Telstra.
Woodside gained 16¢ to $13.72.
Arc Energy lifted 7¢ to 49.5¢ after Hovea operator and equal joint venture partner Origin Energy reported a 26m hydrocarbon column - most likely oil - in the Hovea-3 appraisal well.
Confirmation of the length of the column, hydrocarbon type and reservoir quality would only be possible after the cores had been examined in detail and wireline logs of the well were run, Origin said.
The well would now be drilled ahead to the secondary target, the High Cliff sandstone, which was established as gas bearing in the Hovea-2 well."
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
