HDR hardman resources limited

market agrees with london

  1. 1,006 Posts.
    Obviously with HDR opening at $1.30 the market agrees with London.

    I like most HDR holders was surprised by the size of the capital raising. Fact remains with it HDR has enough money until the end of 2005. Whilst I would have liked them to wait till the price was around $1.50 plus ... suppose they wanted to give some value to new investors.

    Announcement overnight I think overshadows everything. Dana's announcement of the discovery of 1 trillion cubic feet of gas ... somewhere around 100 mio bbl oil ... at Pelican 150 KM north of area B with Chinguetti and Tioc shows the real potential of the holdings HDR has. It has an interest in Mauritania covering a total of 67,500 sq Km .... that is a huge area
    and it has its fingers in most of the pies. Sure permits are granted all the time for large areas ... the difference is normally they are a waste of time ... now the difference is we have several commercial finds with confirmed reserves that all the players say are conservative and likely to face substantial increases .. have a look at Dana's annoncement last night. Just remember this new discovery is 150 km away from Chinguetti ... it would seem a good portion of the permit area of 67,500 km has very very good prospects !!

    The other point is when a company discovers nothing ... it costs less to develop ... sounds obvious but ... if they are luck enough to to a seismic and nothing cost are small .... one well and dry ... the same ... now we have hardman with interests in numerous commercial fields in Mauritania ... they will require futher wells to further establish reserves as well as production wells ect ect ... talking serious money to bring the producers on line ... but thats the thing ... bringing it on line and into production and producing money !!!!!

    As to the share price ... hmmm not happy about the dilution but have to accept it ... grudgingly admit they will need it but the timing and price level they chose seems low to me. I got mad the other day when the price failed to react to the information brocure and bought a lot ... this morning sold them all back out taking a nice profit ... think from here ... not much in the way of new news coming for 6/8 weeks would seem a time for the share to be range bound and with the placement coming up .... expect the price to dip at some stage below $1.20 as people sell their shares for the rights and stag a profit ... however as the year goes on believe it is still a buy on dips....

    Good luck to all
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