It is intriguing to me that so far no broker or anyone else on this forum has ventured to take a stab at valuing the Banda gas. Sure gas isn't as good as oil but we are talking 2 to 3 trillion cft of gas which junior gas explorers have wet dreams about.
It seems to me from Ted Ellyard's media statements and references in the annual report (reinfored by Bulletin's assessment) that the Banda gas, located close to the capital Nouakchott and in just 300m of water has a strong chance of being developed.
Just how much would the Banda gas be worth? From a newletter I get from an analyst writing about a junior explorer drilling for gas in California, a 50 BCF reservoir could be worth US$12-18m.
Taking the lower valuation of USD12 million, 2.5 trillion cft of gas is worth USD 600 million, or 58c a share to HDR. (24% in Banda, 424 million shares on issue. 0.56 exchange rate).
How would you like to buy HDR at a discount for Banda gas, with Chinguetti, Banda oil, cash in the bank thrown in for free?
HDR
hardman resources limited
