HDR hardman resources limited

The Banda prospect could be worth $1.00 - $1.20 on

  1. 14,245 Posts.
    From another source.....

    "If, as the SSB research states, a 150 mmbbl field size equates to 40c to Woodside then simple calcs indicate that the same size is worth 42c to HDR. Not sure what the assumptions are in deriving the NPV but I will be doing my own numbers in the next week or two to come up with my own NPV.

    The Banda prospect could be worth $1.00 - $1.20 using the 290 mmbbl number based on back of envelope numbers. Again I will do my own NPV's in the near future. Consequently if the well comes in and permeability can be demonstrated, HDR should see $2.00 comfortably.

    Then ofcourse there are the other 39 leads to be valued on a risked basis. And the fact that Woodside will almost definitely take them over given more success.

    The sand production from Chinguetti-4-2 must be quiet substantial if they were only trying to flow it through 0.5" choke. My experience has been that large sand production rates equate to multi-darcy resevoirs. Assuming a conservative permeability of 2 D, using Dacy's law and making a few other fairly conservative estimates, we get Q = 30,000 BOPD. I'm not sure where the 15,000 BOPD number came from that has been quoted previously on this site. Any ideas anyone? In addition, development of the field will mean horizontal wells which means much higher k.h values.

    Given these numbers, development of the Chinguetti field is a no-brainer. In simple terms this means large cashflows! All that remains is how quick they can develop it. Knowing Woodside however, it will be slow going."

    sailorgirl responds........................

    OptionsMan - I like your style.

    This Hardman is a no brainer winner for sure.

    Do you Woodside boys still hold heaps of HDR shares?

    What do you think the takeover bid price (from WPL) will be?

    Me thinks HDR, will just sell the Chinguetti field rights (incl Banda = $US300,000,000+) and use the money to pay for future exploration.

    HDR is, and always will be, an exploration company.

    Ted and Alan are too valuable and expensive (field sniffers) to be bought out by anybody.
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