Hi Acamas, I'm sorry but I have to disagree with your logic on...

Hi Acamas,

I'm sorry but I have to disagree with your logic on the cashflows. I know you have spent some time going through these numbers and I have read your other detailed posts on the subject.

The main reason why $94.1m was spent on Ching in 2005 was because the field was being developed. This should not be carried forward as yearly expenditure when forecasting cashflow. You also note that Ching will will not generate $94m in revenue in calendar 2006. That may be true, but Ching only came online during 2006 so I believe this is somewhat misleading...

I agree totally that the problems with the northern wells have been the main cause of HDR's decline but I do not agree that it would be terminal for the company. The fact is that the market has painted the whole of the known Mauritanian fields with the same brush, expecting the same sorts of problems with the other fields, ie, Tiof. Do we not think that the Woodside engineers may have some culpability in the well locations and therefore output?

I still believe there is plenty more to come in this takeover and if Tullow are allowed to get HDR for $2 it will be the steal of the year and I will certainly be putting my money into TLW here in the UK.

Cheers

Merkin