Highlands Natural Resources Regulatory News (HNR)

10 Jul 2006 07:00

Hardman Resources Limited10 July 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 10 July 2006 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: UGANDA TESTING PROGRAMME - UPDATE Hardman Resources Limited ("Hardman") provides the following update on itsdrilling operations in Uganda carried out through its operating affiliate,Hardman Petroleum Africa Pty Ltd. Production Testing Update: Waraga-1 Oil Discovery, Uganda Hardman has completed testing of the third and final interval of the threehydrocarbon bearing zones at the Waraga-1 location. Following a shut-in periodfor pressure build-up, the uppermost zone (1680 to 1710 metres) produced amaximum stabilised flow rate of c. 3,650 barrels of oil per day (bopd) of18.6degrees API oil through a 1" choke. This follows the company's previousupdate that reported the same zone flowed at a stabilised rate of c. 2,100 bopdthrough a 36/64" choke. This concludes the testing programme at Waraga-1, designed to assess formationproductivity and acquire good quality fluid samples. The well has been pluggedand suspended ready for completion and potential future production. Results from the three zones tested are summarised below: Test Perforated Interval Depth Main test Maximum flow Oil quality (36/64" choke) (1" choke) #1. 1,888-1,894 metres 1,500 bopd 4,200 bopd 33.8 degreesLower APIZone#2. 1,782 to 1,792.5 metres 2,400 bopd 4,200 bopd 33.8 degreesMiddle APIZone#3. 1,680 to 1,710 metres 2,100 bopd 3,650 bopd 18.6 degreesUpper APIZone TOTAL 6,000 bopd 12,050 bopd The rig and testing equipment will now be relocated to the Mputa-1 location forflow testing of similar oil bearing intervals to those tested at Waraga. Inaddition a flow test will be attempted from fractured basement lithologies wherehydrocarbons were encountered during the drilling of the Mputa well - anadditional play type to those already tested at Waraga. The programme at Mputais expected to commence in early August. Hardman's next drilling update will be in mid July 2006 with the spudding of theColin-1 well, located in PSC Area 'A', offshore Mauritania. Simon Potter, Hardman's CEO and Managing Director commented: "We are very pleased with the test results at Waraga as the strong flows fromall zones are indicative of highly permeable reservoirs. We continue to assessthe commercial scale of the Waraga - Mputa area and our immediate developmentoptions. The discoveries to date have significantly reduced the risk on other prospectsboth onshore as well as offshore under Lake Albert, where our focus is on thematerial potential in likely better developed sections of the rift basin. The planned future programme will see the Hardman/Tullow joint venture drill afurther three wells as we look forward to a very active period assessing thisregion." Equities in Block 2, Uganda 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 referencedto the rig rotary table (RT). SIMON POTTERManaging Director and CEO 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 hasbeen reviewed and signed off by Mr David Cliff, BSC Hons (Geology), ExplorationManager at Hardman, who is a member of the Petroleum Exploration Society ofAustralia and who has at least 5 years relevant experience within the sector. This information is provided by RNS The company news service from the London Stock Exchange