Highlands Natural Resources Regulatory News (HNR)

4 Jul 2006 07:00

Hardman Resources Limited04 July 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 4 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 Since our announcement on 27th June, reporting a flow rate of approximately4,200 barrels of oil per day (bopd) from the lowermost zone at Waraga-1 well,Hardman has now completed testing of the middle of the three zones to be flowedat the Waraga-1 location and commenced testing of the upper zone. From the middle perforated interval from 1782 to 1792.5 metres the well flowedat an average of 2,400 barrels of oil per day (bopd) through a 36/64" choke.Following a shut-in period the well was flowed through a 1" choke at a sustainedflow rate of approximately 4,200 bopd. The quality of the oil is the same astested in the lower zone of the well, being a light (33.8degreesAPI), but waxy,crude. As at midnight on 3rd July, the third and final interval was perforated from1680 to 1710 metres. This interval flowed heavier (18.5 degreesAPI) oil at astabilized rate of 2,115 bopd through a 36/64" choke. The well is currently shutin for pressure build up prior to the final flow period with results expectedbefore the end of the week. Following the conclusion of testing at Waraga-1, the rig will move to the Mputaarea for testing which is expected to commence by late July/early August. Simon Potter, Hardman's Managing Director and CEO, commented: "Flow rates from all zones tested to date have exceeded expectations.Potentially, this reduces the reserves threshold for development as commercialexploitation would require fewer wells and thus a lower capital commitment." 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