oil revenues at today's oil prices

HDR is due to commence receiving oil revenues in just 6 months time; hence it seems time to estimate oil revenues ,only from Chinguetti at the moment,at today's prices of $US66.25 /bbl.

19% of 75,000bbls /day =14,250. Muliplied by $US66.25 and divided by .77 we get $A1.226 million per day; times 365 we get $A447.5 million per annum. Most brokers are still assuming last year's estimate price of $US30 to 35 per barrel. Southern Cross, I notice is using $US50 per bbl, but hey guys! Time to see it as it will very likely happen. Most of the cost estimates I have seen are not too bad so do your own cash flows. With cash flows like this, HDR could afford to drill three test wells on the Guyane tenements at sole risk. Cost of three wells would be around $US 50 million, and HDR's equity would be 97.5% at that stage.