re: Mauritania, to trender To trender,Thanks for the detailed...

re: Mauritania, to trender To trender,

Thanks for the detailed reply. The 30% recovery rate is fine. I didn't read your initial post carefully enough and failed to notice that the 300mbls was 'oil in place' as opposed to 'recoverable reserves'.

HDRs current shareprice barely covers its cash and proven reserves let alone the massive blue sky potential of upwards of $10 a share, as Sailorgirl illustrates. Ching and Banda are just two of 95 leads and I have no doubt that there will be several more Chings in the next two years. If you had told me at the beginning of the year that HDR would have drilled 6 wells and 5 were hits with no price appreciation, I'd have rolled around the floor laughing.

Unfortunately until the cashflow starts in 04/05 HDR will be the plaything of the traders who value the stock based on phases of the moon rather than its intrinsic value. This gives an excellent opening for intelligent, astute long term investors to build large positions thanks to the folly of sort term traders. I view the recent share price depreciation with amusement and delight and hope it continues.

If you are brave enough to post your email address I'll send you my valuation model next time I update it.

Cheers

Ching