...I am very surprised by the current reaction to the Faucon...

...I am very surprised by the current reaction to the Faucon announcement. Dana hasn't been holding back publicly stating their optimism for Faucon...

Hi snouty, I think Dana has overdone the PR thing a bit too much. They have retrieved 27 barrels of fluid, and they did drill into an overpressurised zones with hydrocarbons encountered, I think the current price level is about appropriate since it is factoring in about 20% COS of 250MBO = 8c to HDR @18% interest. Until such time the final wirelogs, core samples and formation pressure results are known, it is too speculative to factor in anymore than that. Nonetheless, it does look promising and it will be significantly re-rated upon confirmation of oil and how much there is. The overpressurised zones maybe the presence of a gas cap, which is not a bad thing as we have seen from the likes of Chinguetti, Tiof, tevet and Banda to date. Time will tell on that one :)

Look on the bright side, if Faucon happens to be uncommercial, hdr won't fall anywhere near as much as Dana will, IMHO, even though they are also drilling another high impact well in the North Sea, as well as some exciting prospects in Block L5 and L7 in Kenya next week (based on what I have read on TMF).

As "Simon said" at the Sydney presentation "Uganda could be the shareholders Chrissie present".

I hope so snoball!!

Simon mentioned at the Melbourne meeting that HDR beleived that the source of the CO2 did not extend into the HDR block, the Turaco well [if I remember correctly[ was also much deeper than the proposed TD of the HDR drills.

That's based on the 3D seismic Heritage/Tullow did over Block 1 (which found the carbonatite source). The only sure way to know is via the drill bit though :)

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