oriels recommendation, page-5

Here's page one ....

"Hardman is growing rapidly with working interest production of 14,000 b/d expected from the Chinguetti field offshore Mauritania by March 2006. Tiof has yet to be fully appraised and scoped for development but could be in production by mid 2008 boosting company output to 40,000 b/d. Other oil and gas discoveries have been made at Banda, Tevet and Pelican. The company’s transformation from frontier explorer to significant oil producer isnearly complete.
Managing growth is a key challenge. The new CEO brings excellent credentials and wealth of relevant experience. Company strategy remains committed to
developing a self-sustaining production base and maintaining high impact exploration upside for shareholders through frontier ventures.
Hardman had cash balances of £82m as at 31st March and a US$100m loan facility to finance Chinguetti. There should be no difficulty in funding Tiof and ongoing exploration from cash flow and the balance sheet once it is on stream.
The next exploration phase is due to start after the Stena Tay returns from a one month re-fit in the Canaries once released from Chinguetti drilling. The initial programme should start in July and see Hardman participate in 7 or 8 exploration wells offshore Mauritania by year end targeting over 250 million barrels net to the company (compared to 100 mmbbl credited in our valuation for existing discoveries). New ventures in Guyane and Uganda are also nearing the drillbit.
We have revised our mid cycle oil price assumption (from US$30/bbl to US$36/bbl) and raised our NAV for the company to 67p from 59p and updated the EMV of the next drilling programme to another 28p per share. Our
Appraisal NAV and EMV now include a total of 55p for PSC B offshore Mauritania and we demonstrate within how this acreage alone could be worth over 72p per share. This takes no account of the substantial gas reserves already established at Banda in PSC A and Pelican on Block 7 or the prospectivity of the rest of the acreage.
In our view the shares have all the ingredients to deliver further substantial upside."