re: macquarie research typo...simcole Its a very 'weak' note -...

re: macquarie research typo...simcole Its a very 'weak' note - just a 1 pg summary of the QR:


Key Points OUTPERFORM
• 4Q05 announcement. On the 29 July 2005, Hardman Resources released its 4Q report
for the year ended 30 June 2005. The report did not lead to any substantive changes in
our view on the forward outlook or forecast of production and earnings through the
immediate period.
• Hardman reiterated its earlier guidance regarding cost increases on the Chinguetti
project, with CAPEX likely to exceed the budget of US$625m by 10% (US$687.5m).
The cost pressure resulting from development drilling problems.
• The project remains on track for an early 2006 start-up, however, we believe first oil
could be delivered somewhat earlier.
• The company’s cash reserves are sufficient to cover this increase in capex. We have
already made allowances for increased costs and will not be making any further
adjustments to our numbers at this stage.
• We understand the exploration programme is expected to commence imminently, with
the first wells in the schedule being Sotto, Colin/Colin Deep and Espadon. In addition,
we believe further appraisal drilling will be conducted on Tiof with an expectation of
commerciality delivered by the end of the year. All the exploration wells are ‘standalone’
threshold and we recommend exposure to this programme.