RayracHDR budgeted for a possibly 10% upside to drilling and...

Rayrac

HDR budgeted for a possibly 10% upside to drilling and development costs and so their ANZ Bank finance will easily cover the increase. This extra drilling highlighted better oil columns and better reservoir quality (read flow rates, net to gross etc) - so a reserve upgrade will result which as you say is excellent news.

With a proposed 7-9 exploration wells and the new EM technology being used to highlight targets (and on existing Chinguetti, Tiof and Tevet oil fileds as a calibration) the second half of the year promises to be rewarding. Confirmation of a staqrt date will get the market going - but I can't imagine that will be before late May or June given the extra EM and other data they are using to pick targets.

In the meantime - quietly accumulating. The way the markets are and are likley to be for the remainder of 2005 - a stock like HDR in the best sector to be in and with good growth prospects - is a must have IMHO.

Cheers

H