Ferret's BOURSE BEAT
15:16, Monday, 19 August 2002
Sydney - Monday - August 19: (RWE) -
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HARDMAN RESOURCES reports the Chinguetti-4-2 well off the
Mauritanian coast has uncovered significant oil-bearing sands and a
gross oil-bearing column of 94 metres.
"It's a good discovery," said Andrew Williams, oil and gas
analyst at Auzeq Securities.
"The original discovery well, Chinguetti-1, had a gross
hydrocarbon column of 90 metres.
"It's gross, so it's 94 metres from the highest known oil show
to the lowest known oil show.
"The key is the net pay but from the original Chinguetti wells,
it'll probably be a fair column," Mr Williams said.
The announcement seems to have had a strong impact on the
partners' share prices.
Woodside was up 2 per cent, Roc was up 1.3 per cent and Hardman
jumped 13.5 per cent.
"It probably firms up and possibly underpins a commercial
threshold of reserves given it's a step-out well - that is, one some
lateral distance from the original well.
"It confirms the mapping and extent of the field and firms up
the reserve expectations.
"It's a faulted structure - what's called a 'normal fault'.
"They've drilled on the up-thrown side.
"The column is comparable to the one they've discovered on the
down-thrown side.
"The conclusion from that is that it probably holds the reserve
they were expecting - that is, a commercial threshold.
"The interesting thing is that at this stage, even if Woodside
expands this, their production forecasts don't have a first flow from
Mauritania coming in and it'll probably be two years before it's up and
running.
"Woodside's real growth will start in 2006," Mr Williams said.
HDR
hardman resources limited
