Morning all,I cannot wait to read the current financial figures...

Morning all,

I cannot wait to read the current financial figures because according to my calculation HDR spent A$160 million on Mauritania during the financial year ended 2005 of which A$94.1 million went to Ching. That is more money than they will get from Ching oil revenues in the whole of calender year 2006.

If HDR had continued with the current cash outflows I have no doubt in my mind that with falling production from Ching and no other revenue producing streams the depletion of their cash in hand would have placed them in a very very tight corner.

How could they fund Uganda, Mauritania and Guyane? My answer is they could not for much longer. Why management did not sell on one of the above three areas only they know. Perhaps the thing that went sour on them during the last 6 months was the rapid drop in production from The Ching Field. I estimate if production could have been kept above 60,000 barrels per day HDR would have survived.

The bad luck with the northern wells plus the compressors and the soft sand has well and truely punished them.

Perhaps one day Mr Potter may say that the above was their nemesis