Drilling Report

20 Sep 2005 07:04

Hardman Resources Limited20 September 2005 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 20 September 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 WEEKLY PROGRESS REPORT Hardman Resources Limited ("Hardman") provides the following progress report onthe Mauritania offshore drilling programme: PSC Area B: Espadon-1A and Tevet-2 Wells The Espadon-1A well was plugged and abandoned on 15 September 2005 followinganalysis of wireline logs which indicated that no significant hydrocarbons wereencountered by the well. The 'Stena Tay' drilling rig then moved to the Tevet-2 well, which spudded on16 September. This well is presently at 1,510 metres and 13 3/8" casing is beingset. The Tevet-2 well is located 2.5 kilometres to the south of the discovery wellTevet-1, and lies in a water depth of 466 metres. The well is a combinedappraisal and exploration well; it is designed to appraise the Tevet miocene oildiscovery and to explore a deeper cretaceous exploration prospect. The plannedtotal depth of the well is approximately 3,965 metres. Chinguetti Development Wells The Chinguetti oil development in Mauritania is now 88% complete. First oil isestimated for February 2006. The project continues to encounter cost pressures, and known project costs tostart-up now total US$705 million. An additional US$45 million is currentlyenvisaged for contingencies. With all upper completions now installed, theforward project risk lies primarily in the installation phase, where someincremental costs are already being incurred in respect of the subsea productionflowlines. The 'West Navigator' drill ship is currently completing the final wellpreparation and clean-up work; it is expected to complete these activities inapproximately 2 weeks. Hardman interests in PSC's 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