Highlands Natural Resources Regulatory News (HNR)

2 Jun 2005 07:02

Hardman Resources Limited02 June 2005 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 2 June 2005 CONTACT: Scott Spencer TELEPHONE: Within Australia: 08 9261 7600 International: +61 8 9261 7600 RE CHINGUETTI DRILLING UPDATE PAGES: 2 Hardman Resources Limited ("Hardman" or "the Company") announces that thedrilling rig "Stena Tay" has completed the drilling of the wells required forthe first phase of the Chinguetti development project, offshore Mauritania.This drilling program included 5 new oil producers, 5 water injectors tomaintain reservoir pressure, and 1 gas injection well drilled on the Bandadiscovery for disposal of the Chinguetti associated gas. The Chinguetti earlydevelopment well drilled in late 2003 will also be tied into the productionsystem, resulting in the planned 6 producing wells being on stream at the end ofthe first phase of development. During the drilling of the Banda gas injectionwell a number of cores were cut and fluid samples taken, to aid in thecontinuing evaluation of this discovery. The "West Navigator" drilling rigremains in the Chinguetti field and is continuing work on the installation ofwell completion equipment. As of 31 May 2005 sand completion equipment had beeninstalled on 7 of the 10 new wells, and this work will be followed by theinstallation of the production tubing and subsea trees before connecting thewells to the Berge Helene Floating Production Storage and Offtake (FPSO) Vesselfor production. Drilling results on Chinguetti were positive, meeting or exceeding expectations. The completion of the drilling phase removes one significant element of forwardproject risk and confirms that the volume of oil-in-place is at least asexpected. On the assumption that early well performance remains in line withforecasts, Hardman anticipates that this will result in an increase in provenreserves when it carries out its initial reserves redetermination. The projectis now over 71% complete and the target date for first oil from the Chinguettifield remains Quarter 1, 2006. The "Stena Tay" is preparing to move to the Canary Islands for upgrade worksbefore returning in July to commence the 2005/6 exploration and appraisalprogram. The forward drilling schedule and selection of the exploration andappraisal targets are the subject of a number of key joint venture meetings tobe held from mid-June. SCOTT SPENCERDIRECTORHARDMAN RESOURCES LTD Note: In accordance with Australian Stock Exchange Limited listing requirements,the geological information supplied in this report has been based on informationprovided by geologists who have had in excess of five years experience in theirfield of activity. This information is provided by RNS The company news service from the London Stock Exchange