SEY.L Regulatory News (SEY)

8 Apr 2005 09:47

Hardman Resources Limited08 April 2005 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 8 April 2005 CONTACT: Simon Potter TELEPHONE: Within Australia: 08 9261 7600 International: +61 8 9261 7600 RE: HARDMAN INITIATES PROCEEDINGS Hardman Resources Limited announces that its wholly owned subsidiary, HardmanChinguetti Production Pty Ltd (together Hardman), today commenced proceedings inthe Supreme Court of Western Australia with the aim of establishing Hardman'sentitlement to cost recovery under the relevant Area B production sharingcontract. The issue involves the meaning according to law of the Joint Operating Agreementand Farmin Agreement for Area B. It has been the subject of considerablediscussion and correspondence between Hardman and Woodside Mauritania Pty Ltd(Woodside), the Operator of the Area B Joint Venture, since late 2003. Hardmanand Woodside have not been able to reach an agreed outcome despite both partiesproposing different terms for resolution by arbitration. Hardman's position is that the entitlement of all joint venture parties torecover costs should be calculated according to the participating interest sharein the Joint Venture. Woodside asserts that it should be entitled to recover100% of its share of the farmin costs for cost recovery purposes. Other Area B joint venture parties have indicated support for Hardman'sposition. Hardman also has an opinion from a Queens Counsel which supports itsposition. Should the Court make the declarations sought, Hardman would receiveapproximately US$18 million in additional cost recovery and reimbursementpayments than would otherwise apply under the Woodside position. The Supreme Court proceedings will not impact upon the development of theChinguetti field which remains on schedule to produce first oil in the firstquarter of 2006. Hardman's Chief Executive Officer and Managing Director, Simon Potter,commented:- "This action by Hardman has been taken reluctantly to break a deadlock in therespective positions of Hardman and Woodside. The parties have essentiallyagreed to disagree and it is necessary to obtain an independent determination ofthe issues involved. This is a one-off situation and will not impact upon the good workingrelationship Hardman has enjoyed and will continue to enjoy with Woodside inseveral joint ventures in Mauritania." SIMON POTTERCHIEF EXECUTIVE OFFICER & MANAGING DIRECTORHARDMAN RESOURCES LIMITED Enquiries:Simon Potter Hardman Resources +61 8 9261 7600Jim Kelly Third Person Communications +61 412 549 083Patrick HandleyJames Crampton Brunswick Group +44 207 396 3536 This information is provided by RNS The company news service from the London Stock Exchange