SEY.L Regulatory News (SEY)

17 Jan 2006 07:00

Hardman Resources Limited17 January 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 17 January 2006 AUSTRALIAN CONTACT: Peter Thomas Hardman Resources Ltd +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: HARDMAN DRILLING PROGRAMME WEEKLY PROGRESS REPORT Hardman Resources Limited ("Hardman") provides the following progress report onits drilling activities: Uganda: Block 2 - Mputa-1 Wildcat Since the last report on 10 January the rig completed repairs and drilled thewell to total depth of 1,186 metres. The well encountered oil shows over twointervals within a deep objective and as of midnight on 16 January oil sampleshave been recovered from the upper interval, a sand of approximately 10 metresgross thickness at 965 metres. The sampling and pressure testing programme iscontinuing. Upon completion of the Mputa-1 exploration well operations, the rig will move tothe Waraga-1 location approximately 19 kilometres to the north-east of Mputa-1. Mputa-1 targeted a structural prospect defined by the 2005 seismic survey withpotential multiple objectives and in an area with surface oil seeps. Theresults of Mputa-1 provide confirmation of a working hydrocarbon system andconsiderable support for further evaluation of both this discovery and thesurrounding area where a number of other good prospects and leads have beenidentified. In this wildcat well the reservoir sands were poorer than expectedfor some of the objective levels but there is significant encouragement that thewell and seismic data can provide a better understanding of reservoir sanddistribution and considerably reduce the risk of other prospects. Further workwill be required before any comment can be made on the size or commercialsignificance of this discovery and the potential for future resource in thearea. The well location is 220 kilometres north-west of the capital Kampala andonshore 8 kilometres from Lake Albert. The location is 60 kilometres south-westof the Butiaba Waki-1 well (drilled in 1938) and 87 kilometres north-east of theTuraco exploration wells drilled by Heritage in 2002-2004. Hardman's CEO Mr Simon Potter commented: "This is a very encouraging result - even though there is still significantuncertainty about the size of Mputa and whether it has commercial potential,this well has confirmed the existence of a working petroleum system. It has beenan important step in reducing exploration risk in the basin and we are lookingforward to Waraga-1, the next well in the programme." Equities in Block 2 are: Block 2Hardman Petroleum Africa Pty Ltd (Operator) 50.0%Tullow Oil 50.0% Mauritania: PSC Area B, Block 4 - Dore-1 Exploration Well Since the last report on 12 January the 'Stena Tay' drilling rig completedoperations on the Zoule-1 well and moved to the Dore-1 exploration well locationin PSC B, Block 4. At midnight on 16 January the 'Stena Tay' was preparing tospud the well. The Dore prospect is located approximately 19 kilometres east of the Tiof field,and 30 kilometres north of the Chinguetti field in water depth of approximately386 metres. The well will be drilled to a proposed total depth of 2,388 metresand will target Oligocene aged submarine channel/turbidite sands as well asencountering the updip extension of the Tiof Miocene canyon system. Equities in PSC B are: PSC BWoodside Mauritania Pty Ltd (operator) 53.846%Hardman Chinguetti Production Pty Ltd 21.6%BG Group 11.63%Premier Oil Mauritania B Limited 9.231%ROC Oil Company 3.693% All reported depths (except water depth) are referenced to the rig rotary table(RT). Hydrocarbon shows will be only be reported after all required logs havebeen run and evaluated, although Hardman will release weekly updates on theexploration drilling campaign. Times and dates for Mauritania wells refer to GMT (Mauritania time), 8 hoursbehind Western Standard Time, Perth. Uganda time is GMT+3, 5 hours behindWestern Standard Time, Perth. PETER THOMASCHIEF FINANCIAL OFFICER Note: In accordance with Australian Stock Exchange Limited listing requirements,the geological information supplied in this report has been based on informationprovided by geologists who have had in excess of five years experience in theirfield of activity. This information is provided by RNS The company news service from the London Stock Exchange