Highlands Natural Resources Regulatory News (HNR)

25 Jul 2006 07:00

Hardman Resources Limited25 July 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 25 July 2006 AUSTRALIAN CONTACT: Simon Potter, MD & CEO Hardman Resources Limited +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: HARDMAN RESOURCES DRILLING UPDATE Hardman Resources Limited ("Hardman") provides the following progress report onits drilling activities: Mauritania, West Africa: PSC-A Block 3 Colin-1 Wildcat Hardman Resources is pleased to report that the first well in its 2006/2007Mauritanian exploration campaign, Colin-1, was spudded at 6:00 PM GMT on 21 July2006 using the Atwood Hunter drill rig. The water depth at the location is 168mand the planned total depth of the well is 2,300m. At a depth of 254m a 36 conductor was set and cemented in place. Currentoperations are drilling ahead in the 18.5 hole section to the intermediatecasing point, and at midnight on the 24th July the well was at 920m drilleddepth. Colin-1 is targeting a Miocene channel system of slightly younger age than theChinguetti and Tiof fairways. The prospect is located approximately 60km southof the Chinguetti field. The prospect is a stratigraphically trapped, incised canyon sand system withamplitude support. The Colin prospect has a mean potential of some 170 millionbarrels of recoverable oil (gross), with follow up potential in older canyonsystems below the Colin Miocene channel and in adjacent channel fairways. Equities in PSC A Block 3 are: PSC A Block 3Woodside Group (operator) 53.846%Hardman Group 24.300%BG Group 13.084%Fusion Mauritania A Ltd 3.000%Premier Oil Group 1.615%ROC Oil Group 4.155% 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 have been runand evaluated, although Hardman will release weekly updates on the explorationdrilling campaign. Times and dates for Mauritania wells refer to GMT (Mauritania time), 8 hoursbehind Western Standard Time, Perth. 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