Rockpool Acqui Regulatory News (ROC)

22 Aug 2006 07:00

Hardman Resources Limited22 August 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 22 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: UGANDA FLOW TEST AND MAURITANIA DRILLING UPDATE Hardman Resources Limited ("Hardman") provides the following update on its flowtesting and exploration drilling operations: Uganda: Mputa-1 Flow Test Update (Block 2) Hardman has completed a successful testing campaign at the Mputa-1 discoverywell. Since our last announcement on 15 August, the upper sand interval has nowbeen tested on natural flow. Results from both zones tested are summarisedbelow: Test Perforated Interval Choke Flow Rate Oil Quality (metres) (bopd) o APILower Sand Zone (DST 2)1,118.0 - 1,126.0 32/64" 300 32Upper Sand Zone (DST 3)966.5 - 974.5 40/64" 820 33 TOTAL 1,120 The test results prove not only that the oil at Mputa is mobile, but also thatthe reservoir sands are capable of producing dry oil under natural flow atpotentially commercial rates. The latter aspect is particularly significant,given that the Mputa reservoirs are at shallower depth, and are hence at lowerpressure and temperature than the corresponding reservoir units at Waraga. Thispositive test result therefore expands the operating envelope over which typicalWaraga and Mputa crudes (32 degrees API) can be produced and eliminates pre-testconcerns over oil viscosity and fluid properties at these shallower depths. Although laboratory confirmation is still awaited, the gravity of all oil flowedat Mputa is similar to that found in the lower units of the Waraga-1 well and islikely to be of similar origin. The Mputa-1 well is located 220 kilometresnorthwest of the Ugandan capital Kampala and 8 kilometres from the shore of LakeAlbert. The Waraga-1 well is located 19 kilometres to the northeast of Mputa-1. This concludes the testing programme at Mputa-1. The well is presently beingsuspended and the rig and test crew are being stood down. Initial guidance onvolumes will be included in the company's Half Yearly Report on 29 August 2006. Hardman Resources Managing Director and CEO, Simon Potter, commented: "The positive test results from Mputa are particularly important given that wemap more oil in place in this resource than at Waraga. Natural flow from thereservoir at these pressures and temperatures are indicative that productionrates could potentially be commercial. Further, collectively the results to-dateindicate that oil from the source interval deep under the lake can migrate allthe way across the rift valley to the boundary fault and thus potentially overthe whole licence, considerably upgrading remaining prospectivity. The joint venture has presented potential forward options to the Government andis currently in discussions concerning the way forward on each of exploration,further appraisal and potential development concepts." 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 Uganda time (GMT+3 hours), five hoursbehind Western Standard Time (Perth). Mauritania: Exploration Drilling Update - Flamant-1 (Block 8) Since the last report, Flamant-1 has drilled ahead in 26" hole to a depth of1,867m where the 20" casing was run and cemented. As at Midnight on the 21stAugust, preparations were underway to drill ahead in the 17 1/2" hole. Flamant-1 will target Cretaceous Carbonates and has a planned total depth3,370m. The well is located in 1414m of water, approximately 210km from theshore and 195 km North-West from Pelican-1, a Cretaceous gas discovery drilledin Block 7. Equities in Block 8 are: Block 8Dana Petroleum (Operator) 41.5%Hardman Resources Ltd 18.0%Roc Oil Company 2.0%Wintershall 25%Gaz de France 13.5% Times and dates for Mauritania wells refer to GMT (Mauritania time), 8 hoursbehind Western Standard Time, Perth. 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 Andrew Patterson, B Eng., Technical Manager at Hardman Resources, who is a member of the Petroleum Exploration Society of Australia and 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