Seawall

Your post on iii says that you expect news on Friday
'Friday's results will explain a bit more on Uganda I am sure'

Could you let me know which results you are expecting ?

Thanks very much

Cameron

HNR has agreed a Farmin Agreement with Ndouv Resources that will result in HNR acquiring a 50% interest in the offshore and nearshore Tanzania Portion of the Ruvuma Basin.

This is in exchange for HNR funding 100% of the 2D onshore seimic survey.

Cam - I believe you have yopur answers to all of this?

If not ask and I will point you in the right direction.

ps I am poo bear on advfn, I tried without success to change it to seawall but it keeps flying back so I gave up.

In respect of this stock?

Game on!

Are these possible take-over bids from either China or India true?

Technotamed - no one really knows, there has not been a reaction in the sp, so it may just be fancifull thinking.

Meantime the dispute between the Mauritanian Government and Woodside is resolved.

Dispute resolved

A bit more in this report from The Age

http://tinyurl.com/n6adw

"Woodside Petroleum has resolved a dispute with the Mauritanian government, agreeing to pay more than $US50 million to the government in a 'profit oil bonus'.

A Woodside spokesperson said as part of the resolution Woodside, and joint venture partners Roc Oil and Hardman Resources must pay a combined $US100 million profit oil bonus to the West African government.

He said this provided the government with an early revenue stream from the recently-commissioned and Woodside-managed Chinguetti operation, where otherwise there would have been a delay in any benefits.

Woodside's share of the profit oil bonus payment is $US53 million based on its 47.3 per cent stake in Chinguetti.

Hardman has a 19 per cent stake and Roc Oil a 3.25 per cent stake and it was not clear how much they would need to contribute to the bonus payment...................
..........The joint venture partners must also provide a $US1 million environmental bond to the government and move operational control of the recently commissioned Chinguetti operation to Mauritania."

buyers in at 1 pound today could be going to push at the high of 106p,is there any mention in the shares mags.hoping for 200p by year end.

That would be nice cellby and if things go as hoped you may see more than 2, but if they don't.............!

Same as any other E & P, except I am very optimistic that this will go well, (all imo and nag + dyor etc)..

Steady as she goes, just how I like it.

I have copied a couple of posts from TMF that cover and disect todays news,

(Superhard)
March Quarterly Report:

http://imagesignal.comsec.com.au/asxdata/20060424/pdf/00608196.pdf
Suriname Announcement:
http://imagesignal.comsec.com.au/asxdata/20060424/pdf/00608195.pdf

___________________________________________________________________________________


(618)"Hardman ... has signed Heads of Agreement with Suriname's State Oil Company, Staatsolie Maatschappij Surinam N.V. ('Staatsolie') and its affiliate, Paradise Oil NV, to acquire a 40% working interest in the onshore Uitkijk and Coronie concessions in Suriname, South America. Hardman is now in the process of concluding ...arrangements for a third party potentially to participate in a small portion of Hardman's acquired interest.

The concessions are both large and prospective, covering a total area of approximately 3300 km2, and lying directly adjacent to Suriname's main producing oil fields, Tambaredjo and Calcutta (Figure 1).... Hardman will earn its interest via the funding of an initial exploration campaign of up to 25 wells capped at a maximum expenditure of US$ 8.5million; drilling is anticipated to commence in the 4th quarter of 2006..."

Another fairly low cost entry to new acreage, and it's in line with their focus on Atlantic basin plays although this is onshore acreage. With drilling of up to 25 wells commencing in Q4 this year, they are not mucking around!!! I like the acreage because of its proximity to the Tambaredjo oil field, which as per previously discussed by Scotty and Dean at the 2004 Melb presentation session, is a very prospective region with the clear presence of a good source kitchen, now all they need is a good migrating path and a trap! *Tongue in cheek* :)

In the Qtrly Report, the information I find most useful was the bit on Tiof...


"...The concept being optimised by the field operator, Woodside, is based on a dry tree unit, either a tension leg platform (TLP) or possibly a spar platform, with a light-weight integral drilling facility. Under this scenario, initial development would cover the central area of the Tiof field, with subsequent further development to be determined once production history has been obtained.

The key advantage of this proposed route... is that drilling and subsea equipment costs would be significantly reduced, thus bringing down the economic threshold of recoverable reserves per well. However, this concept does carry a higher initial facilities capital cost than a leased FPSO, with project capex indicatively in the range US$650-700 million. Given the complexity of the Tiof reservoir, and particularly concerns about the connectivity within the reservoir, reducing costs per well may be a key determinant of ultimate economic recovery. The next step would be a joint venture decision anticipated in the current quarter to take the selected concept forward..."

Sounds like very prudent risk management. For those of you wondering what a DTU is and its purpose, here's a useful PDF to read (page 4 to 8)...

http://www.slb.com/media/services/resources/oilfieldreview/ors00/win00/p2_9.pdf

Also, it sounds like they are very close to reaching an consensus over the proposed action plan going forward.


"...At this stage the concept is provisionally for six initial production wells which would access reserves in the region of 40-60 mmbbls and first oil should be by 2009. With the facility having some 15 to 18 well slots to allow for future expansion, there would be considerable potential for additional reserves to be accessed from further development drilling. Potential reserves could be further enhanced by better-than-assumed reservoir parameters. Indicatively, the first phase would be designed to handle oil production of approximately 50 mbopd. The Chinguetti FPSO could be used for final processing and storage prior to export, at least for the initial phase of development, although a dedicated floating storage and offtake vessel is also an option..."

So if we assume the impact of an additional 50MBO of production from Tiof by 2009, that's a significant boost to Hardman's earnings. Of the top of my head, with the expected upfront capex as well as the equity position of each JV partner very similar to Chinguetti, the DCF model should reflect approximately double the current 2009 expected earnings estimate. Actually, it would be slightly less then double because of the lower general consensus oil price projection for 2009 - which is around US35-US40. But based on that and a start up date of Q1 2009, Hardman should be earning around 250-300 million by 2009 - or more if higher oil price is sustained through till then. Based on today's price, that would put Hardman on a perspective PE of between 6.5x to 5.4x.

And that's not including any projected earnings from Uganda, which if found to be productive and commercial, would definitely be producing before then given that they are onshore/near the lake-shore. While on Uganda, testing equipment is already being mobilised on site for production testing of Mputa and Waraga. A second rig is also being mobilised to drill Mputa-2/Mputa-C at the same time. Should be quite an action-packed two months to say the least.

"Hardman Resources in placing of 65.9 mln shares at 98p UPDATE
AFX


(gives production details)

LONDON (AFX) - Hardman Resources Limited said it plans a placing of up to 65,918,810 ordinary shares at 98 pence each to finance accelerated appraisal and exploration plans.

The placing represents up to 10 pct of the current issued share capital of the company.

Hardman said that, with the Chinguetti field now in production, further discoveries offshore Mauritania awaiting development, and the recent successes in Uganda, it has successfully built a balanced portfolio of exploration and production assets as a platform for future growth.

The company said it now has a set of attractive investment opportunities and in view of these new investments, the board decided to carry out the fundraising announced today.

In Uganda, the company proposes to make further investment to appraise the

recent play-opening discoveries, Mputa-1 and Waraga-1. Looking ahead, Hardman said it has started planning for drilling large offshore prospects beneath Lake Albert and will also likely acquire additional 2D and 3D seismic data to extend coverage over the onshore oil trend. Hardman said it expects to spend at least 20 mln usd in Uganda over the remainder of this year and next.

In Guyane, some 10 mln usd of the proceeds of the placing is anticipated to provide funding to test the prospectivity of different play types by drilling at least two wells. Drilling is now most likely to commence in 2007, subject to rig availability.

The company said it has also been pursuing a number of attractive new venture opportunities, of which the recently announced ventures in Tanzania and Suriname are the first to be signed-up.

Out of the proceeds of the placing, 25 mln usd is allocated to specific new venture proposals, including further Atlantic Margin exploration new ventures at an advanced stage of negotiation.

Hardman also said it proposes to bid for acreage in the upcoming Trinidad licensing round.

Any left over proceeds from the placing will be allocated to increasing working capital, including support for any new venture commitments, and reducing reliance on the Group's existing project finance facility.

Operating cash flows from Chinguetti are presently strong, notwithstanding that production levels are currently below oil facilities capacity, Hardman said.

The reduction is due principally to lower deliverability from the northern wells. This will not be compensated by over producing from the southern wells, which would likely cause gas and water handling issues, the company said.

Hardman said its cash earnings and net debt and cash forecasts for 2006 will be affected by the actual production for 2006. However, the Hardman board said that current high oil prices, if sustained, should more than offset the reduction in forecast cash earnings for 2006."


The last placing was very slow to clear, so I am not too amused with thus, the consolation is the plans and advanced negotiations they are in.

On a grand scale of things, what's another 65 million shares?

A healthy pick up for any possible predator I suppose.

seawallwalker not at much of a giVerway price,unlike the last placeing.sold out yesterday when they started droping.comeing back later see where the price lands. ps. pVr moVing neVer toped up.

Hello hello, cellby.

No, not really a give away, not too amused really, I would normally have sold at the same level you did and for the same reasons, but decided to hang on because of lots of positive vibes, trouble is those vibes were telling me to sell as well I think.

I had some PVR the other day, looks good.

I may just knock off a few more......... you writing style reminds me of someone else?

wish it reminded me of some else who could spell.

lol

Quick as a flash........


RESULTS OF PLACING OF NEW ORDINARY SHARES

PAGES: 3

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED
STATES, CANADA OR JAPAN

Hardman Resources Limited ('Hardman' or the 'Company') is pleased to announce
that, following this morning's announcement of its proposed placing of new
ordinary shares (the 'Placing'), a total of 65,918,810 new ordinary shares in
the capital of Hardman (the 'Placing Shares') have been placed by JPMorgan
Cazenove Limited and Oriel Securities Limited subject to certain conditions at a
price of 98 pence per Placing Share, a 2 per cent discount to the previous
night's closing price on the London Stock Exchange of 100 pence per ordinary
share. The gross proceeds of the Placing amount to approximately 64.6 million
(A$153.3 million).

It is expected that admission of the Placing Shares to trading on AIM, a market
operated by London Stock Exchange plc, will become effective at 8:00 am (London
time) on 3 May 2006 and that quotation of the Placing Shares on the official
list of the Australian Stock Exchange will become effective at 10:00 am (Sydney
time) on 4 May 2006.

The Placing Shares will, when issued, be credited as fully paid, rank in full
for all future dividends and other distributions declared in respect of the
existing issued ordinary shares of Hardman on or after the date of issue of the
Placing Shares and will otherwise rank pari passu in all respects with the
existing issued ordinary shares of Hardman.

Happy again.

Golly, there are some buys going through.

CWA1 over thye road posted this from the Telegraph

"Share price 98.25p -1.75
Questor says Buy

The news in February that oil has begun to flow in West Africa came as some reassurance to investors in frontier exploration venture Hardman Resources.

The Australian company, joint listed on Aim, has been digging holes in hard-to-find places since 1987 and is now shaking a tin at London investors for $100m (56m), via a placing of 65m new shares at 98p a share, to continue the search. The money will be used to finance exploration in Uganda, Surinam and even further afield like the Falkland Islands.

But it is the Mauritanian deposits that offer the most immediate and meaty returns. Oil from the Chinguetti field, where Hardman has a 22pc stake, is now flowing at 65,000 barrels a day but it arrived too late to provide revenues in the first quarter. Results this week for the three months showed a loss of A$46m (19m).

Current flow from Chinguetti is slightly below forecast but an inflated oil price should more than compensate.

Fortune has favoured the brave souls who got on board at 25p in 2002. Though the shares are being diluted, there should be further upside considering the company is revenue-generating. However, this is one for courageous investors only."

Can't say I feel I am any more a hero than any other E&P investor holding these.

Now If I held some others in this sector, I would have to be raving........

Down overnight in Oz, to $2.29AUS = 94.44 pence mid.

I'll have to see if and how much more this drops to see if I takle on some more again, but I now feel justified in doing what I did, when I did.

I still have a largish holding having sold a third on Thursday.

HC report a Merryl Lynch downgrade, but there is no link, and no substantition to this so take it as it stands for now.

"Merrill Lynch 01-May-06 3 Neutral, Medium Risk - -
The broker has reduced Chinguetti production forecasts, raised capex and raised exploration write-offs. This all conspires to take earnings down 44% in 2006, 23% in 2007 and 9% in 2008. Valuation falls 2% to $2.10."

Bit of a rough ride on the good ship Hardman recently.

Today's news from the Uganda drilling can be read HERE


Further to fall over the summer?