Highlands Natural Resources Regulatory News (HNR)

16 May 2006 07:00

Hardman Resources Limited16 May 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 16 May 2006 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd +61 8 9261 7600 Peter Thomas Hardman Resources Ltd +61 8 9261 7600 Jim Kelly Third Person Communications Pty Ltd +61 2 8298 6100 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: UGANDA DRILLING PROGRAMME Hardman Resources Limited ("Hardman") provides the following update on itsoperated drilling activities in Uganda: Uganda: Block 2 - Mputa-2, Appraisal Well Since the last report Mputa-2 has successfully cemented intermediate casing to526 metres and is currently drilling ahead towards the primary objective(equivalent to the top reservoir at Mputa-1 and Waraga-1) and core point. Coringhas been planned over this reservoir interval in order to calibrate reservoirparameters for the Mputa and Waraga oil fields. At midnight on Monday 15 May2006 the well was at 958 metres and drilling ahead. Mputa-2 is an appraisal well designed to determine the extent of the hydrocarbonbearing reservoirs seen at Mputa-1. Planned Total Depth of the well is 1,500metres. Seismic data indicates that thicker basal sandstone reservoirs arepossible at this location. Results from Mputa-2 will allow a more accurate determination of the reservepotential, commerciality and potential development plans for the fault block inwhich Mputa-1 and Waraga-1 have already discovered oil. Success at Mputa-1 andWaraga-1 has confirmed the presence of a working hydrocarbon system and trappingmechanism which merits appraisal and exploration drilling in a number of onshorelocations on the fault terrace. In addition to this, the information gainedfrom the current drilling program will aid in planning the exploration of thelarger, deeper prospects within Lake Albert itself. Preparations are currently underway to flow test the Waraga-1 discovery, and theequipment being mobilised for this can be used for testing Mputa-2 if this issuccessful, or the Mputa-1 discovery. 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: (1) In accordance with the ASX Listing Rules, the geological informationsupplied in this report has been based on information provided by geologists whohave had in excess of five years experience in their field of activity. (2) In accordance with the AIM Rules, the information in this report has beenreviewed and signed off by Mr Chas Sheen, B App Sci (Geology), Grad Dip App Phys(Geophysics), Senior Geophysicist at Hardman, who is a member of the PetroleumExploration Society of Australia and who has at least 5 years relevantexperience within the sector. This information is provided by RNS The company news service from the London Stock Exchange