Acquired Interest in Tanzania

24 Mar 2006 07:00

Hardman Resources Limited23 March 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 24 March 2006 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd +61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: HARDMAN ACQUIRES TANZANIA EXPLORATION INTEREST Hardman Resources Limited ("Hardman") is pleased to announce that a FarminAgreement has been signed with Ndovu Resources Limited ("Ndovu"), a subsidiaryof Aminex PLC, that will result in Hardman acquiring an interest in the onshoreand nearshore Tanzania portion of the Ruvuma Basin. The Farmout Agreement provides for Hardman to earn a 50% interest in the RuvumaProduction Sharing Agreement ("PSA") in exchange for funding 100% of the costsof an onshore 2D seismic survey, at an estimated cost of US$3 million. Theinterests in the Ruvuma PSA will be: Ndovu 50% Hardman 50% Hardman will be appointed Operator of the PSA upon completion of the earningcommitment and Hardman will provide technical support during the seismicacquisition programme. The Farmout Agreement and subsequent change ofoperatorship is subject to formal Tanzanian government approval. The Ruvuma PSA is located approximately 500 kilometres south of Dar es Salaam,along the Mozambique border and comprises the Mtwara and Lindi licences. Thelicences cover a total area of 12,360 square kilometres over the onshore andadjacent nearshore, Tanzanian portion of the Ruvuma Basin. The area is adjacentto the Mnazi Bay gas field, discovered in the 1980's and currently underdevelopment. The area was last explored in the 1980's and prior to the recentactivity less than 1,400 kilometres of 2D seismic had been recorded. Numerousleads have been identified by previous operators from this data, many withpotential in excess of 100 million barrels. Initial targets will be Tertiary andCretaceous reservoirs expected at depths of 1,000 to 3,000 metres. Oil seeps areknown in the area. The Ruvuma Basin attracted significant interest in the recent Mozambique biddinground with nearshore and shallow water licences attracting bids with workcommitments of seismic and up to seven wells. Ndovu acquired approximately 350 kilometres of new 2D marine seismic within thenearshore portion of the PSA area in late 2005, and initial results are veryencouraging. The onshore seismic survey is expected to comprise approximately500 kilometres of data and is scheduled to be carried out during 2006 with aview to firming up drilling targets for the joint venture's first explorationwells in this area. Aminex PLC is an upstream oil and gas company listed on the London and IrishStock Exchanges and is currently the Operator of exploration licences inTanzania, Madagascar, North Korea, and Egypt and production in the United Statesof America. Hardman's Managing Director and CEO, Simon Potter, commented: "This entry intoTanzania allows us access to a new and exciting frontier with significantpotential. We plan to leverage our experience as an operator of wells andonshore and offshore seismic acquired in our successful Ugandan project. Thisgives us an opportunity to build a new focus area in East Africa." 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