“To the extent that entry costs constrain the potential for growth outside our existing portfolio, then the favoured option … is to push pace and maintain higher equity in our existing holdings,” said Potter.

“Now we have both the financial means and skills set to control our own destiny.”

Hardman is collecting extra seismic in its French Guyane project to potentially start drilling by mid next year, and it will also drill its Ugandan wells long before its 2007 obligation.

Hardman has extended its seismic program in the Falklands, in which it has a 22.5% interest, to secure tenure for longer than originally stated in the licence.

Potter said moving Chinguetti into production for the first quarter of 2006, would allow the company to move from its chief position as explorer to explorer/producer, said Potter.

“Once we’re in production, that will significantly improve Hardman’s risk profile,” he said.

“[Production] will directly expose us to the oil price and the associated upside, as well as giving us a significant income stream.”

While Chinguetti’s cost had blown out to A$705 million, Potter joined partners Woodside and Roc Oil in blaming this increased drilling costs and further expenses associated with fabricating and installing sub-sea flow lines.

Hardman would also continue appraising its high-value discoveries, such as Chinguetti, with a view to expanding its asset base and income, and would continue high-impact exploration in Mauritania, said Potter.

“We have a diverse acreage position across eight blocks with a very strong prospect inventory and we’ll continue to work that hard with a continuous drilling program well into next year,” he said.

“[Also] given the imminent cash delivery from our Mauritanian development, we will work to optimise the capital structure of the business.”

The company would also “aggressively exploit” its strong equity positions outside Mauritania, claimed Potter.

“The advantage of having strong equity positions in other areas is that we can manage pace – accelerating options as we feel appropriate,” he said.

“This is a clear advantage at the moment in an industry where new opportunities for investment are in short supply or prohibitively expensive.”

Hardman’s cash balance decline for the last financial year, from A$327 million to A$148 million was explained with larger investments into long-term capital assets. Potter said he was confident the company had sufficient funds to meet all existing and planned commitments.

New offices had also been opened in London, Trinidad and Mauritania, to support its operations in various regions, said Potter.