The reality is that this development will be seen as a short-term negative for valuations of the JV partners but in HDR's and ROC's cases the sp adjustment has already happened IMHO.
HDR will give up ~15% of its 22% stake in Chinguetti- but it will be re-imbursed for past costs at 150% and it will also have to fund a lower amount of the development costs. This leaves it in a better position to participate in other developments such as the much bigger Tiof and the proposed Tevet tie-in, and to fund other exploration such as in Uganda, Guyane and Gabon. It may then also be able to hang onto all its equity in the other Mauritanian blocks more easily (Blocks 1, 7 and 8). Having the Mauritanian government and people involved financially is a must and a good move IMHO.
Having said all that the HDR sp won't be heading significantly higher until we have good results from Capitaine and Tiof.
Its a tough game!
H
HDR
hardman resources limited
