timing for announcement of flow rate, page-6

Hardmano

You are correct in that WPL would be waiting for a definitive commerciality announcement before making a takeover bid. However, a the moment I would consider a takeover to be premature. There is no compelling reason for Woodside to take over HDR and they would certainly have a hard time justifying a takeover of HDR at present. Woodside already holds a substantial interest in Mauritania and buying HDR would increase their exposure there. Therefore, unless and until Chinguetti is commercialised and other discoveries are made which proves HDR to be cheap on paper. Woodside will have no compelling reason to move on HDR.

This is not to say that in two or three years time the situation will be the same. If everything goes well, HDR could prove up to another 300 mbbls of oil in Mauritania in the next two years. This would make their share substantial and would become extremely attractive to Woodside then.