HDR hardman resources limited

financial times article

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    Premier Oil acquires stakes in West Africa
    By Toby Shelley in London
    Published: May 28 2003 8:34 | Last Updated: May 28 2003 8:34

    Premier Oil on Wednesday moved to win a slice of the promising oil acreage offshore north-west Africa, acquiring stakes in the Chinguetti and Banda discoveries from Anglo-Australian explorer Fusion Oil & Gas.
    The deal fulfils an aim of Charles Jamieson, chief executive of Premier, to gain critical mass in West Africa. In addition to the Mauritanian acreage, it also gives Premier an interest in two fields offshore Gabon and an option to participate in any future licence awards to Fusion offshore the disputed Western Sahara.
    Fusion receives a cash payment of $10m, royalties on oil production from the 6 per cent and 3 per cent stakes in the Mauritanian licences, and options to participate in Premier's exploration work offshore Guinea Bissau. The agreement fits with Fusion's strategy of cashing in on exploration success before development costs bite while maintaining exposure to the upside of discoveries.
    The deepwater discoveries offshore Mauritania in blocks operated by Woodside of Australia are likely to begin production in 2005 or 2006 at some 75,000 barrels-a-day. The Mauritania oil finds prompted renewed interest in the Western Sahara, which lies to the north.

    Surely, this move by such a large player as Premier will give credence to the commerciality of the Chinguetti field go ahead. Hardman are extremely confident that they will be able to raise finance for the project so it is just a matter of time now before the market re-rates HDR.
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