Drilling Report

9 May 2006 07:00

Hardman Resources Limited09 May 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 9 May 2006 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd +61 8 9261 7600 Peter Thomas Hardman Resources Ltd +61 8 9261 7600 Jim Kelly Third Person Communications Pty Ltd +61 2 8298 6100 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: UGANDA DRILLING PROGRAMME PAGES: 2 Hardman Resources Limited ("Hardman") provides the following update on itsdrilling activities in Uganda: Uganda: Block 2 - Mputa-2 - Appraisal Well The Mputa-2 appraisal well spudded at 12:00 midday on Sunday 7 May 2006,3 kilometres northwest of the Mputa-1 discovery well and 19 kilometres southwestof the Waraga-1 discovery. Since then Mputa-2 has been drilled to 130 metres andcasing is being run and cemented before nippling up the diverter and drillingahead to the planned intermediate casing point at 500 metres. Mputa-2 is an appraisal well designed to determine the extent of the hydrocarbonbearing reservoirs seen at Mputa-1. Planned Total Depth of the well is 1500metres. Seismic data indicates that thicker basal sandstone reservoirs arepossible at this location. Results from Mputa-2 will allow a more accurate determination of the reservepotential, commerciality and potential development plans for the fault block inwhich Mputa-1 and Waraga-1 have already discovered oil. Success at Mputa-1 andWaraga-1 has confirmed the presence of a working hydrocarbon system and trappingmechanism which merits appraisal and exploration drilling in a number of onshorelocations on the fault terrace. In addition to this, the information gained fromthe current drilling program will aid in planning the exploration of the larger,deeper prospects within Lake Albert itself. Preparations are currently underway to flow test the Waraga-1 discovery, and theequipment being mobilised for this can be used for testing Mputa-2 if this issuccessful, or the Mputa-1 discovery. Equities in Block 2 are: Block 2Hardman Petroleum Africa Pty Ltd (Operator) 50.0%Tullow Oil 50.0% Times and dates for Ugandan wells refer to UTC/GMT +3 hours (Uganda time), 5hours behind Western Standard Time, Perth. All reported depths are referenced tothe rig rotary table (RT). Hydrocarbon shows will be only be reported after allrequired logs have been run and evaluated, although Hardman will release weeklyupdates on the exploration drilling campaign. RICHARD O'SHANNASSYCOMPANY SECRETARY Note: (1) In accordance with the ASX Listing Rules, the geological informationsupplied in this report has been based on information provided by geologists whohave had in excess of five years experience in their field of activity. (2) In accordance with the AIM Rules, the information in this report has beenreviewed and signed off by Mr Chas Sheen, B App Sci (Geology), Grad Dip App Phys(Geophysics), Senior Geophysicist at Hardman, who is a member of the PetroleumExploration Society of Australia and who has at least 5 years relevantexperience within the sector. This information is provided by RNS The company news service from the London Stock Exchange