Highlands Natural Resources Regulatory News (HNR)

27 Jun 2006 07:00

Hardman Resources Limited27 June 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 27 June 2006 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd +61 8 9261 7600 Jim Kelly Third Person Communications Pty Ltd +61 2 8298 6100 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: UGANDA TESTING PROGRAMME - UDATE 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 Following our announcement on 22nd June concerning the flow rates from theWaraga-1 well, Hardman has continued to test the lowermost zone over theweekend. Following a shut-in period the well was flowed through a 1 inch chokeat a sustained flow rate of approximately 4,200 barrels of oil per day (bopd).As reported previously the oil is light but waxy, with a low gas to oil ratio.Pressure build-up tests indicate good permeability. The current operation is preparing for testing of the two shallower oil-bearinghorizons in the well, the first of which will commence later this week, beforemoving to the Mputa location. Simon Potter, Hardman Managing Director and CEO, commented: "The first flow test of Waraga-1 has exceeded our expectations of wellproductivity, demonstrating that the reservoir is highly permeable and, despitethe waxy nature of the crude oil, that it is highly mobile in a productionconfiguration. The basal sand zone tested here is oil-bearing in all three ofthe wells drilled so far and, although it appears not to be connected betweenthe locations, is areally extensive so should add up to a significant resource." Equities in Block 2 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