SEY.L Regulatory News (SEY)

18 Nov 2005 07:00

Hardman Resources Limited18 November 2005 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 18 November 2005 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: MAURITANIA DRILLING PROGRAMME LABEIDNA-1 EXPLORATION WELL UPDATE PAGES: 2 Hardman Resources Limited ("Hardman") provides the following progress report onits Mauritania offshore activities: PSC Area B: Labeidna-1 Exploration Well The Labeidna-1 wireline logging and sampling programme and an initial evaluationhas been completed. The well is currently being plugged and abandoned asplanned. As previously reported, the initial wireline and drilling data indicated thatthe well intersected oil in the Miocene sand objective within a number of thinsands interbedded with shales. This provided sufficient encouragement toproceed with further wireline logging including acquisition of pressure andsample data and high resolution logs necessary to better define which of theseinterbedded units has adequate reservoir characteristics. The logging and sampling programme has now been completed and the pressure dataindicates the oil is in two separate accumulations over a total column in thewell of approximately 120 metres. The high resolution logs and subsequentreinterpretation of the 3D seismic data suggest the oil is reservoired inchannel margin or overbank sands. A sidetrack targeting interpreted channelsands was considered but would not reach far enough to test interpreted thickerand better developed reservoir. A separate appraisal well would more adequatelyevaluate the discovery. Labeidna-1 was drilled to a total depth of 3,080 metres and is locatedapproximately 15 kilometres to the south west of Chinguetti in 1,261 metres ofwater. Hardman's CEO Mr Simon Potter commented: "This represents another discovery in the Chinguetti-Banda channel system. Whileit is unlikely to be commercial at the Labeidna-1 location appraisal is requiredto evaluate the commercial significance of this discovery. It's not unusual tohave reservoirs thin onto a salt diapir and our interpretation of the well andseismic results is that thicker channel sands are located downdip and adjacentto the discovery well. Our experience from the development drilling on thenearby Chinguetti Field is that once we have a well to calibrate the 3D there isa high chance of success in locating better reservoir channel sands insubsequent sidetracks or new wells. This is within tieback distance to theChinguetti Field." Hardman interests in PSCs A, B and the Chinguetti field are: PSC B PSC A Chinguetti Field (EEA)Woodside (operator) 53.846% 53.846% 47.384%Hardman 21.6% 24.3% 19.008%BG Group 11.63% 13.084% 10.234%Fusion/Premier 9.231% 4.615% 8.123%ROC 3.693% 4.155% 3.250%Groupe Projet Chinguetti - - 12.000% 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 refer to GMT (Mauritania time), 8 hours behind Western StandardTime, Perth. SIMON POTTERMANAGING DIRECTOR 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