Highlands Natural Resources Regulatory News (HNR)

21 Nov 2006 07:00

Hardman Resources Limited21 November 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 21 November 2006 AUSTRALIAN CONTACT: Peter Thomas Hardman Resources Ltd +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: GUYANE FARM-OUT AGREEMENT SIGNED WITH GAZ DE FRANCE Hardman Resources Limited ("Hardman"), through its wholly owned subsidiaries,Planet Oil Limited and Hardman Petroleum France S.A.S., is pleased to announcethat it has concluded a Farm-Out Agreement with Gaz de France SA for a 20%participating interest share of the Guyane Maritime Exclusive ExplorationLicence (EEL) in South America. Under the terms of the Agreement, Gaz de France will conduct and fundgeophysical studies in the acreage to further reduce risks of selectedexploration prospects and subsequently carry costs attributable to part ofHardman's remaining participating interest through the first exploration well.The Agreement also provides two further options to Gaz de France: first, to exitthe joint venture after completing the further geophysical studies; and second,the option for Gaz de France to increase its participating interest to 30%,shortly after completion of the first exploration well. The Guyane Maritime EEL was awarded in June 2001 and has since been the subjectof an extensive exploration programme by Hardman. Over 9,000 line kilometres of2D seismic data and 380km2 of 3D seismic data have been recorded in twocampaigns, resulting in the identification of more than 20 prospects and leads.It is intended that the Matamata prospect would be the first to be drilled, andsubject to contracting a suitable rig, drilling is expected in late 2007 or2008. The farm-out reduces Hardman's participating interest in the EEL from 97.5% to77.5%. The farm-out is subject to the usual regulatory approvals and officialrendering of the second period of the EEL. Hardman will remain as operator. Commenting on the Agreement, Hardman's MD and CEO, Simon Potter, said: 'The entry of Gaz de France into the Guyane Maritime permit brings new technicaland cultural strengths to the venture. We welcome the participation of Gaz deFrance, and look forward to working jointly with them to advance hydrocarbonexploration within the Guyane maritime area." Equities in the Guyane Maritime EEL on completion of the Farm Out Agreement,assuming that neither option is exercised, will become: Pre Farm-Out Post Farm-Out Planet Oil Limited / Hardman Petroleum France SAS (operator) 97.5 % 77.5 %Northpet Investments Limited 2.5 % 2.5 %Gaz de France SA --- 20.0 % Peter ThomasChief Financial Officer This information is provided by RNS The company news service from the London Stock Exchange