HDR hardman resources limited

HDR followers only ! Ted Ellyard'0s response to m

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    I received a cordial and well reasoned reply to my "not happy Ted" email of last week - which was inspired by the placement at 70 cents. He sent it at 2.30 this afternoon - so he's on the job even on a Sunday. My email criticised the apparent "insider" selling leading up to the placement, the price of the placement and the fact that it went to HDR's mates Intersuisse and Macquarie.

    I did congratulate Ted on the drilling campaign and his management over the 3 years that I have been a shareholder, and said that I thought the placement would be positive for HDR longer-term (just in case he and you think that I am just a total whinger !!)

    I won't post his reply verbatim out of respect for his privacy - but here's a summary:

    1) He said he understood my annoyance about the current share price and the apparently cheap placing price. He said he was also disappointed in the share price but that the overall share market, particularly in London is the worst it’s been in years.

    2) He said that the Hardman share issue was only placed to institutional investors in Aust and UK. It has been HDR's intention since listing in London in March this year to bring some large institutional investors onto the share register which would underpin the company’s growth over the next few years.

    3) He said he doubted whether a share issue to existing shareholders would have been very successful in the current market.

    4) He indicated that the placement price at 70 cents was only a small discount to the market price which went down to 72c largely due to the disappointment with amount of gas in the Banda discovery. He said however, that we (HDR/JV ?) are very encouraged by Banda which is a very important and large gas and oil discovery. He has tried to get that message out unofficially via the press as Hardman was initially prevented from announcing much detail by the Joint Venture confidentiality restrictions which are particularly being enforced by Agip.

    5) He said that now that the capital raising issue is out of the way and the Company has sufficient funds to last until well into the 2003 drilling programme, he hopes that the market will focus on the continuing success that Hardman is achieving in Mauritania and elsewhere.

    6) He said that he was sure that my patience will be rewarded (I hope he is right !).

    I thought this may be of general interest to HDR followers. Of note is his comment that Banda is considered a very important discovery - I assume he is alluding to the fact that it proves up a second play type and that it is a second 100 mbbl oil discovery that is potentially commercial in its own right. Also interesting that it's Agip that are enforcing the information blackout (I was aware that they would prefer that no information was released but I assumed possibly incorrectly that WPL was also playing games).



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