Highlands Natural Resources Regulatory News (HNR)

7 Mar 2006 07:00

Hardman Resources Limited07 March 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 7 March 2006 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: HARDMAN DRILLING PROGRAMME WEEKLY PROGRESS REPORT Hardman Resources Limited ("Hardman") provides the following progress report onits drilling activities: Uganda: Block 2 - Waraga-1 Wildcat Since the last report on 28 February, the Waraga-1 well was drilled to a depthof 1,768 metres. Wireline logs, including wireline pressure and sampling tools,were run at this depth to investigate hydrocarbons encountered in the well(elevated gas readings and oil shows). Subsequent evaluation of these logs andpressure measurements indicates a gross hydrocarbon interval of 32 metres with anet pay ratio of approximately 50% and the hydrocarbon type is interpreted asoil. Samples are yet to be recovered from the well because of problems with thewireline sampling tool. No oil water contact has been observed although thewell has now passed into probable water bearing sands below the hydrocarboninterval. Multiple objectives are interpreted in this prospect and, on the basis ofseismic correlations between Waraga-1 and Mputa-1, we still expect to intersectdeeper objectives, similar to the oil bearing intervals in Mputa-1, beforeWaraga-1 reaches total depth. At midnight on 5 March the well was drilling ahead at 1,872 metres towards arevised planned total depth of approximately 2,050 metres. Wireline logsincluding a pressure and sampling programme will be conducted to furtherevaluate this reported hydrocarbon interval and the expected deeper objectives. Waraga-1 is located 19 kilometres to the northeast of the recently drilledMputa-1 oil discovery well and 41 kilometres southwest of the Butiaba Waki-1well (drilled in 1938). Waraga-1 is testing a structural prospect with identicalgeological targets to the oil bearing reservoirs seen at Mputa-1. The Waragaprospect was defined by the 2005 onshore seismic survey and the geological riskwas significantly reduced by the success of Mputa-1. Hardman's CEO and Managing Director, Simon Potter commented, "These initialresults, along with the drilling of deeper targets and planned additionaltesting of hydrocarbons at Waraga-1 are a strong follow up to the initialdiscovery well at Mputa-1. Combined, these results give us considerableconfidence for realising additional potential in the region which will givestrong impetus to an appraisal and commercialisation process". Equities in Block 2 are: Block 2Hardman Petroleum Africa Pty Ltd (Operator) 50.0%Tullow Oil 50.0% Times and dates for Ugandan wells refer to UTC/GMT +3 hours (Uganda time), 5hours behind Western Standard Time, Perth. All reported depths are referenced tothe rig rotary table (RT). Hydrocarbon shows will be only be reported after allrequired logs have been run and evaluated, although Hardman will release weeklyupdates on the exploration drilling campaign. SIMON POTTERMANAGING DIRECTOR 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