Commentry from oilbarrel.com

Makes good reading.

27.10.2004
Hardman Preoccupied By The Promise In Mauritania
Unsurprisingly, it is operations in the waters off the coast of Mauritania that makes up the bulk of Hardman Resources quarterly report to the Australian Stock Exchange. This reflects the intensity of the work programme in Mauritanian waters as well as that programmes potential to completely transform the potential of the companys fortunes. Hardman is not alone among its peer group in its exposure to the Mauritanian campaign - but unlike fellow London-listed stakeholders such as Premier and ROC Oil, Hardman holds a major slice of the action. It holds a 24.3 per cent stake in PSC A (home to two exploration wells in the current campaign), 21.6 per cent in PSC B (three wildcats) and 28.8 per cent in PSC Block 2 (one exploration well). Hardman also holds 18 per cent in the Dana-operated blocks 1 and 8 and 16.2 per cent in Block 7.

To date the 22-well drilling campaign, using the West Navigator and Stena Tay to drill the deepwater wells, has got off to a flying start. Dorade-1 may have been a dry hole but the Tevet-1 wildcat found 114 metres of hydrocarbons, comprising a 70 metre gas leg and 44 metre oil leg. Significantly, the well, drilled in 489 metres of water, lies within potential tie-back distance, about 10 km, of the Chinguetti oil development.

An appraisal of the Tiof oil find, Tiof-3, encountered a 134 metre oil column, in line with pre-drill expectations, leading Hardman to repeat its internal 2P number for the field of 300-350 million barrels.

This figure, if proved correct by further appraisal drilling (up to three more appraisal wells are planned for Tiof), would dwarf numbers for the Chinguetti field, which has a 2P reserve base of 123 million barrels and is expected onstream in the first quarter of 2006. The Chinguetti-8 well has been completed as a water injector well. A further 11 production or gas/water injector wells are on the cards for Chinguetti in the current drill run. Hardman is well advanced in its preparations to finance its share of the US$600 million development, estimated at up to US$130 million. The company has been in talks with ANZ Banking Group for two years and expects that institution to underwrite and participate in a loan for between US$90 and US$100 million. Hardman plans to fund the US$30 million balance itself.

Given the buzz of activity off the coast of northwest Africa, the remainder of Hardmans portfolio of far-flung E&P assets, which stretch from Australia to the Falkland Islands via Eritrea and Uganda, appears something of a sideshow.

In the Australian waters of the Timor Sea, the company is currently processing a 2D seismic survey and gearing up to drill the Marloo-1 exploration well in the early part of 2005. 2D seismic, some 4,000 km of it, is also on the cards in the waters off the south of the Falkland Islands where Hardman has formed a joint venture with Falklands Oil & Gas, and in Uganda, where a small seismic shoot is planned to define drilling locations for next year. Progress in Eritrea is on hold until the PSC for the Massawa Block is signed, hopefully before year-end, while exploration work in Guyane awaits completion of discussions with potential farm-in partners. Drilling on the Iris Marin and Themis Marin PSCs offshore Gabon, where the seismic points to smaller than expected prospects, of less than 20 million barrels, has been deferred until next year. The company may have to withdraw from exploration permit 38215 in New Zealand, awarded in August 2001, as it looks unlikely it will fulfil its drilling commitment on the acreage.

But, with commercial success looking more likely with every successful well sunk in Mauritania, investors may forgive Hardman the odd slip here or there...

Just had an email from someone called Ted.

He says:-

Tiof-3 Appraisal Well - PSCB
West Navigateor ran and cemented casing to 2980m and preparing for flow testing.

Capitaine-1A - PSCB
Stena Tay drilled 2718m, cemented casing, and preparing to run in hole and drill TD


I think he just copied last weeks................

Need to keep an eye on this one.

Sure fire buying opportunity imo.

In view of SEY in Mauritania is it still worth holding HNR. I know they have a intrest in the Falklands but I can't see that happening for a while. Any views?

MS

I'm wondering the same, especially by the time the govt take their cut.

I'm thinking short term with this.

If it goes much lower there will be a bounce.

Still not bought in yet!

capitaine 1 wet with water hey?

That explains the salt dome.

Sea water has salt in it.

Of course what is beneath the water??

Something below is forcing pressure up. It's not continental drift as that is going away from Africa.

I'm sure they know what they are doing though.

It's a gusher!!!

From Hotcopper

"ABN-AMRO just confirmed P90's rumour they suggest a 300mmbbl (gross) oil discovery at Merou

This would influence WPL's share price by 4% HDR by 17% and ROC by 11% the results of Merou are expected early this week. and the TIOF-3 flow test within the forthnight

Bring it on we could have a great Xmas, and Hopefully a good one for Ted as well"

Seawall, can u post the link to arrive to this news/rumour. Ta

tomorrow!

xmortal, here is what you want.

from a poster on ADVFN:

Baker Young Stockbrokers associate director Wesley Legrand said one of yesterday's big movers was Woodside Petroleum, which reached a record high. The stock climbed 72 or 3.5 per cent to $21.02.
"It was because of the investment community getting information about the potential of their Merou-1 wildcat well," he said.
...
http://www.thecouriermail.news.com.au/common/stor y_page/0,5936,11508570%255E3122,00.html

...
Baker Young Stockbrokers associate director Wesley Legrand said Woodside had rallied on news that its Merou-1 wildcat well could be a "gusher" similar to the Tiof and Chinguetti discoveries. Results are due next week.
Woodside reached a record high, climbing 72c or 3.5 per cent to $21.02.
"There is research around indicating it could be worth up to $1 a share to Woodside's price," Mr Legrand said.
...
http://dailytelegraph.news.com.au/story.jsp?secti onid=1265&storyid=2292984

...
UBS research showed the well could be a "gusher". Results are due next week.
...
http://www.theadvertiser.news.com.au/common/story _page/0,5936,11509766%255E913,00.html

Cant get to the link, maybe expire, will wait and see what brings next week. Good luck to all holders. xm

http://www.thecouriermail.news.com.au/common/stor y_page/0,5936,11508570%255E3122,00.html

This one worked, the navigate to 'Resources lead new high'

It takes you to the article.

Sorry did it wrong, here it is.

http://www.thecouriermail.news.com.au/common/stor y_page/0,5936,11508570%255E3122,00.html

Or try this as an alternative.

http://www.thecouriermail.news.com.au/

Rumours over the other side of a "gusher" at Merou, nothing to substantiate them, but worth keeping an eye on price and volume this week IMHO.

I believe these rumours eminate from the HotCopper website in Australia, so should be treated as simply rumours until something more solid is available.


Edit

Sadly, we now have confirmation, and it's another disappointment!

Details can be found by following the link below, shame!

http://www.asx.com.au/asx/statistics/announcementSearch.do?method=searchByCode&releasedDuringCode=W&issuerCode=hdr

Ouch! Took a hammering today.

MS

It'll rise just the same.

Holes or no more holes with oil or gas, there is enough in Mauritannia now to make a go of it.

Plus there are still 13 more holes to drill, (give or take 1)!

SWW,

yes, I'm considering topping up at this level.

Me too.