'Hold on to Hardman says analyst
Steve Rotherham
Thursday, December 02, 2004

THE market has overreacted to disappointing results for Hardman at the Merou-1 and Capitaine-1 offshore Mauritanian wells, according to a report by financial consultancy Smith Barney, a division of Citigroup Global Markets Inc.


Hardman closed yesterday at $1.61, down 18 cents or 10.1% from the previous day's close of $1.79.

"Our valuation of Hardman is unchanged at A$2.48 a share," the report stated.

"We believe the known reserves plus the potential for upgrades at Tiof and Chinguetti are worth around A$1.82 a share. The potential for further additions (Tevet) and the potential value of gas at Banda bring our value up to the A$2.48/share level. Our recommendation is maintained at Hold/Speculative Risk (2S)."

Smith Barney said there were also two other exploration wells Sotto-1, a 150-250 million bbl prospect, and Bogue-1, a 300 million bbl prospect that could still be drilled. It was also possible that the joint venture would now concentrate on generating cashflow from Chinguetti and Tiof rather than exploration.

But Hardman was still considered to be a speculative investment as its assets were located mainly in one country, Mauritania, and these were the first oil and gas fields to be located in that country.

Another reason to hold on to Hardman shares could be the company's leases in offshore Guyane (formerly French Guiana).

Smith Barney did not discuss this region, but Hardman acting chief executive Scott Spencer told the company's annual general meeting that Hardman was excited about its deep-water leases off the Guyane coast. Hardman holds a 97.5 per cent interest in more than 65,000 square kilometres.

Spencer said Hardman had completed a large 2D seismic survey outlining a giant structure that could hold 2.5 billion barrels of recoverable oil.

The company was talking to potential farm-in partners but it intended to hold on to a bigger stake than it did when Woodside farmed into Chinguetti, Spencer said.'

Hardman down another 5% overnight in Australia.

If it is repeated here this will be a real bargain. Sell with all that colatteral

People are daft!

Hi Seawalker.. I'm getting fed up with topping up at these bargain prices.. I just can't see why the folk are selling as this is truely going to be a winner.. oh well I guess we each have our own perspective.

Cheers

Chris

I think the reaction here is purely because of bear action in Oz.

These, pmo, hnr, sey & roc are all great to hold on just now.

So say I,

"Aye"

Well. HNR in the 60's.

Can it get any lower?

I say aye!

I want to buy some HNR but I think I will let Tuesdays update for Tiof 5 go by first!

If there is not much to learn from the update, it may be they are having trouble finding what they are looking for, in which case therer may be another downward trend.

All, please remember Chinguetti which also caused a dive of a similar nature last year.

It pays to wait for the low!

Please make your own decisions, I am just saying mine out loud!

SWW,

Yes I think waiting for next Tuesday's update is the correct course of action here, IMHo, I'm doing exactly the same!

Ok we might miss a couple of pence of a rise if all is well, but at a reduction to risk, which I prefer.

Well I hold the shares from earlier, having reduced somewhat. But I agree with what you say, get Toif out of the way.

Have we reached bottom yet?

MS

MS at these prices I am looking to come in.

HDR = HNR on the ASX has a $2.60AUS price ticket.

Freeing up funds should be in tomorrow, fingers crossed!

SWW

How much is that in stirling?

MS

Half a haggis and a tartan jockstrap MS
Nam

As much as that wow!

MS

Are you sure that you have the right HNR seawallwalker? They are ticker HDR in Ossie! About $1.50 something?


Code Last $ +/-....Bid Offer Open...High..Low...Volume
HDR 1.550 -0.120 1.550 1.550 1.650 1.650 1.550 5,690,005

As they say, s***e happens?

It was an item I read last week concerning HDR. I did not think at the time to copy it or check it's authenticity.

I'll do some work on it!

Is it a good time to top up or is the downward trend still in place.

MS

MS
I'm looking for under 60p to jump back in..............I may not find it though!

sandrew64 maybe today is the day - another 3.23% drop in OZ overnight. See it's marked down to 60p ish here before open, but the ask is 62p.

HDR.AX - HARDMAN RSC- ASX - price 1.50 AUD -3.23% - volume 12,214,084

Needs to do better than that today for me I think. 60p ask is about right bearing in mind it can still drop.

Can't believe this stock is doing this, it is back to last years level almost!

Chinguetti is no longer in the price imho, nor tevet or tiof.

Bogue at 2billion and a 13% hit rate to be drilled next year I think.

I can not trace the item re the price target so forget that.

Waiting game today then.

I had a figure of 57p in my head but thought I was probably being a bit silly...we'll see.

anyone no hardmans NAV it will give a good indication of what level to buy at.