re: shafted again - leo leo LL
I agree totally with you on the timing aspect.
I strongly anticipate (like some others) that TIOF will be fast tracked and the JV partners are expecting to contract the drill ship(s) to remain in Mauritanian waters and continue to drill appraisal/production wells on TIOF after Chinguetti wells are done. I would be surprised if they cannot do a "cookey cutter" type of engineering analysis on TIOF that will enable the rapid progression of the project. When they are doing the Chinguetti contracts etc...they can piggy back off that in the identification of FPSO vessels etc and let contracts fairly quickly if they really want to. In fact, i would not be surprised if the JV really sees TIOF as the highest priority given its size and proximity to very prospective tie-ins.
With oil prices where they are the business case/IRR of these projects would be quite robust.
ALso, I have read many of the posts yesterday and today and like others, I feel a little peeved. In particular, after reading the presentation material realeased on Monday, I think there is one element that the management has stuffed up...that is the tax payable on the BG sale. Previous announcements said that they were not yet certain of the tax position of the sale. That, in itself is a disgrace, that a USD132m asset sale would be completed without understanding the full implications. I did support the concept of the sell down on the basis that it lowered HDR's risk profile and provided cash to strengthen the balance sheet. But now that i know AUD38m goes straight to the Tax Commisioner I am quite disappointed. In fact the "value" to shareholders has immediately been cut by around 30%.
regards
DF
HDR
hardman resources limited
