Highlands Natural Resources Regulatory News (HNR)

23 Aug 2006 07:00

Hardman Resources Limited23 August 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 23 August 2006 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group (UK media relations) +44 207 404 5959 RE: ADVICE REGARDING HALF YEAR 2006 RESULTS AND CHINGUETTI UPDATE Advice regarding Half Year 2006 Results & Chinguetti Update Hardman Resources Limited ("Hardman") wishes to advise that it will issue itsInterim Results for the Half Year ended 30 June 2006 at 7:30 am WST on 29 August2006. A copy of an Investor Presentation relating to these results will beplaced on the Hardman website www.hdr.com.au shortly thereafter. The InterimResults announcement will include additional details on the performance andoutlook for the Chinguetti field offshore Mauritania and provisional estimatesof oil volumes discovered to date in Uganda, following the successful testresults announced earlier this week. To date, the Chinguetti field operator, Woodside, and Hardman have advised thatthe estimated reserves of the field are under review following the significantlylower-than-expected production. The operator has now advised that the updatedreserve estimates, reflecting the re-appraisal of its geological and reservoirmodels, will be provided by the end of 2006. As an interim measure pending more detailed data being available, Hardman willprovide in its Interim Results announcement its view on those aspects of thefield's potential which can be commented on reliably at this stage. This willinclude volumes of oil in place, which as confirmed by the operator have notmaterially changed, and estimated recoverable reserves from the existing Phase 1and planned Phase 2 wells which formed the original development plan. The wellsin this original plan are not likely to recover significantly more than 50% ofthe original 2P (proven and probable) reserves estimate of 123 million barrels.It is not possible at this time to provide a reliable estimate of complete 2Preserves as this will have to take into account additional recovery from otherfuture wells in a re-assessed development plan. Ultimate recovery will alsodepend on the benefits from the proposed 4D seismic programme in early 2007 andapplication of different technical solutions (eg well designs) from those in theoriginal development plan. The corresponding net entitlement reserves under theproduction sharing arrangements are expected to be reduced by a lesserproportion than changes to the gross field reserves. SIMON POTTERManaging Director and CEO This information is provided by RNS The company news service from the London Stock Exchange