Highlands Natural Resources Regulatory News (HNR)

13 Mar 2006 07:00

Hardman Resources Limited13 March 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 13 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 7 March, the Waraga-1 well was drilled from 1,872metres to total depth of 2,010 metres into basement and wireline logs have beenrun. At midnight on 12 March wireline pressure testing and sampling programmehad been completed. Oil samples have been recovered from the 32 metre grossinterval previously reported (at a depth of approximately 1,700 metres).Preliminary indications are that this is a light oil of approximately 40o APIgravity. While no oil water contact was observed, pressure data from the oilinterval and deeper water bearing sands suggests a minimum 45 metre oil columnfor this reservoir interval. Wireline logs and shows while drilling have indicated a deeper, separate zone ofinterest from approximately 1,780 metres to 1,930 metres which contains a numberof thinner sands. Oil samples have been recovered from a sand at 1,893 metres.Pressure testing and sampling has been conducted, with interpretation of resultsexpected in the coming days to determine the extent of this deeper oil bearinginterval and whether it represents one or a number of oil columns. The well will now be cased and suspended ready for future testing. Planning ofthat testing programme is underway and equipment is being sourced and mobilised. 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 testing a structural prospect with identicalgeological targets to the oil bearing reservoirs seen atMputa-1. The Waraga prospect was defined by the 2005 onshore seismic survey andthe geological risk was significantly reduced by the success of Mputa-1. Hardman's CEO and Managing Director, Simon Potter commented, "Two discoveries intwo wells in this region is a great success. That the oil appears to be of goodquality is encouraging and hence casing of both wells (Mputa and Waraga) aheadof a testing programme. Indeed given this most recent success at Waraga we areactively planning the future appraisal and commercialisation programme to fullyevaluate the potential of the region." 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