HDR hardman resources limited

Energy Review Report 8 Oct

  1. 800 Posts.
    Hardman report confuses shareholders, but good news ahead

    Brendan Egan
    08 October 2002
    This story is exclusive to ERN as of 8/10/2002 5:48:55 PM EST.

    Conflicting reports released by partners in the Chinguetti 4-4 well in Mauritania have confused shareholders, many of them thinking the appraisal well is about to be declared a failure. Nothing could be further from the truth, said Hardman Resources, one of the companies involved.

    Woodside released its report today at 11.56am saying the well was at 2929m and drilling ahead to total depth. The initial TD of the well was reported to be around 2925m in reports lodged to the ASX on the 1st October.

    At 12.09pm Hardman released its report, except it was the report for the previous day (7th October) and hence, had the current depth as 2618m and drilling ahead to total depth. With the degree of market attention focussed on participants in the well, any ambiguity is viewed with negativity.

    Callers to EnergyReview.net asked whether the Woodside report meant the TD had been reached and found wanting for hydrocarbons and whether the differing well reports meant the well was dry and the partners were differing about the future plans.

    Hardman managing director Ted Ellyard said the company was a victim of the reporting of their partner Woodside. “We receive the reports very late in the day from Woodside, which leaves them time to adjust their reports as they receive further info. This is what happened and has left us looking silly.

    “It’s very unfortunate for shareholders but the fact is that while I cannot release any results until logs are completed, I’m very happy with the results,” he said. “There will be more information in a few days.”

    Analyst say Hardman experienced a similar hiccup when drilling an earlier Mauritanian well.

    They said the fact that three cores have been cut over 2,599 to 2,706 metres was a positive sign.

    Hardman opened the day’s trade at 71c and slipped to finish at 69c, just below the figure of 70c at which 15% of the company was recently placed.

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