Highlands Natural Resources Regulatory News (HNR)

20 Dec 2005 07:00

Hardman Resources Limited20 December 2005 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 20 December 2005 AUSTRALIAN CONTACT: Peter Thomas Hardman Resources Ltd +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: HARDMAN DRILLING PROGRAMME WEEKLY PROGRESS REPORT PAGES: 2 Hardman Resources Limited ("Hardman") provides the following progress report onits drilling activities: Mauritania: Block 1 - Faucon-1 Exploration Well The 'Stena Tay' drilling rig is currently concluding logging operations prior to plugging and abandoning the Faucon-1 exploration well in Block 1 offshoreMauritania. Since the last report the well was drilled from 3,475 metres to atotal depth of 4,170 metres. Further sandstones were encountered over thisinterval but no significant hydrocarbon shows were observed. The Faucon-1 well has encountered a total of 96 metres of potential Cretaceousreservoir sands including the approximately 40 metres reservoir sand reportedlast week. Wireline logs and pressure data indicate the upper 10 metres of thatreservoir sand contains a hydrocarbon column and pressurised fluid samples takenfrom the reservoir sand are being transferred to an onshore laboratory foranalysis during January 2006. A further announcement on the hydrocarbon type andcolumn height will be made on completion of the analysis. Upon completion of operations at Faucon-1 the rig will then move to Block 6 forthe drilling of the Zoule-1 exploration well. Hardman's CEO Simon Potter commented: "Faucon-1 has made a significant contribution to our understanding of thesouthern extent of the Cretaceous basin. On the basis of current information,Faucon-1 is unlikely to be a stand-alone commercial discovery, but it hasdemonstrated the presence of a working petroleum system - the necessarycombination of reservoir, source and trap - in the southernmost block ofoffshore Mauritania. The well has proven the existence of Cretaceousreservoir-quality sandstones and, subject to the results of the fluid analyses,materially extends the area of potential hydrocarbon charge. These results aresignificant for the other identified prospects within Hardman's Block 1 and 2acreage." Equities in Block 1 are: Block 1Dana Petroleum (E&P) Ltd (Operator) ^ 60.0%Hardman Petroleum (Mauritania) Pty Ltd 18.0%Tullow Oil 20.0%ROC Oil (Mauritania) Company 2.0% ^ Gaz De France acquiring 24% subject to completion of their assignment fromDana. All reported depths (except water depth) are referenced to the rig rotary table(RT). Hydrocarbon shows will be only be reported after all required logs havebeen run and evaluated, although Hardman will release weekly updates on theexploration drilling campaign. Times and dates refer to GMT (Mauritania time), 8 hours behind Western StandardTime, Perth. Uganda: Block 2 - Mputa-1 Wildcat Mobilisation and rig up is complete and the rig is now undergoing inspection andtesting prior to rig acceptance and spudding of the well. Mputa-1 will target a structural prospect with potential multiple objectives.The prospect was defined by the 2005 onshore seismic survey and oil seeps havebeen identified in the immediate area. The planned total depth is approximately 1,100 metres. The well location is 220kilometresnorth-west of the capital Kampala and onshore 8 kilometres from Lake Albert. Thelocation is 60 kilometres south-west of the Butiaba Waki-1 well (drilled in1938) and 87 kilometres north-east of the Turaco exploration wells drilled byHeritage in 2002-2004. Equities in Block 2 are: Block 2Hardman Petroleum Africa Pty Ltd (Operator) 50.0%Tullow Oil 50.0% PETER THOMASCHIEF FINANCIAL OFFICER 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