piusTiof reserve upgrade and commerciality decisions will be...

pius

Tiof reserve upgrade and commerciality decisions will be some time yet IMHO - mid-year for the go-ahead I would think. HDR doesn't need a capital raising - the JV will do a phased development of Tiof in 2006/07 and HDR will have cash flow by then from Chinguetti and will be able to largely debt-fund Tiof early development - which will cost around the same as Chiguetti for 50,000 bopd initially. For the next stages of Tiof develeopment they will have Chinguetti and Tiof cash flow. All IMHO of course.

I expect HDR to run back towards $2.00 if Tiof flow results are as expected (5,000 bopd or greater) and as exploration drilling resumes.

H