BG is developing the Tangguh LNG development in Irian Jaya, which is a rival to Australia’s proposed LNG developments, Gorgon and Sunrise, and last month paid Hardman $177 million for a 12.5% stake in its Mauritanian assets.

Ellyard told a briefing service BG was particularly interested in the gas reserves big enough to develop LNG.

He said, ‘the Banda reserves are possibly already large enough for a “stand alone” LNG development. However, we’re optimistic that substantially more gas reserves will be discovered in other prospects during the forthcoming drilling program.

“Mauritania is well located for a short transport route to supply LNG to the east coast of USA and into Europe.”

Ellyard said a preliminary estimate (based on only one well) has indicated gas reserves at Banda could be about 3 trillion cubic feet (TCF) recoverable, which may be upgraded following the drilling of an appraisal well in 2004.

Hardman also unveiled details of a 10 well drilling program for the African country, estimated to cost it up to $60 million, upping Woodside’s previous statement outlining a far more modest program.

Independent analyst Peter Strachan said “based on the sale price for the ENI interest in Mauritania, the field is worth A$1.134 billion and HDR’s interest would be worth A$245m. Add in cash and other interest and a valuation of $400m is not too taxing for the company.”

Hardman has firmed in recent days to be trading at $1.34 in morning’s trade while Woodside has also risen to levels not seen for some time, reaching $16.15.