Drilling Report

16 Nov 2006 07:00

Hardman Resources Limited16 November 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 16 November 2006 AUSTRALIAN CONTACT: Simon Potter Hardman Resources Ltd + 61 8 9261 7600 LONDON CONTACT: Patrick Handley Brunswick Group + 44 207 404 5959 RE: SUCCESSFUL NZIZI-1 WELL IN UGANDA AND OPERATOR UPDATE ON CHINGUETTI FIELD (MAURITANIA) PAGES: 2 Exploration Area 2: Nzizi-1 Since the last report on the Nzizi-1 well, logging operations have beencompleted and pressure measurements taken. Good oil shows were encountered during drilling over a gross interval ofapproximately 180 metres, directly above basement, in a similar section to thatencountered by the Mputa-1 well, 6 kilometres northeast of Nzizi-1. Wireline logs and pressure measurements indicate an interbedded sequence of oilbearing sands and shales. No fluid samples or testing operations were plannedfor this well as it was drilled in a slimhole configuration and consequently itwill now be plugged and abandoned. The well result suggests there is scope to significantly increase therecoverable volume reported so far for the Mputa/Waraga area, of around 30million barrels, and hence further enhance the potential resource base in theAlbertine Basin. Studies are underway to establish a range of developmentoptions for the existing discoveries, which allied to additional seismiccurrently being acquired and future appraisal drilling, will determine ultimatecommerciality. Commenting on the Nzizi-1 result, Mr. Simon Potter, Hardman MD and CEO, said: "The fourth discovery in four wells drilled by Hardman in Exploration Area 2proves that the working oil system extends over a significantly greater area,adding to the resource base established so far this year, and providingencouragement for future exploration of the basin." Equities in Block 2 are: Exploration Area 2Hardman Petroleum Africa Pty Ltd (Operator) 50.0%Tullow Oil plc 50.0% OPERATOR UPDATE ON CHINGUETTI RESERVES (MAURITANIA) Hardman notes that the Chinguetti field operator, Woodside, has today providedin a presentation to investors an update on the Chinguetti field (Hardman19.008%), including an interim update of Chinguetti field reserves. The operator's estimate of proven and probable reserves for the Chinguetti fieldof 53 mmbbls is consistent with the estimate provided by the IndependentTechnical Expert for the purposes of the Scheme of Arrangement for theacquisition of Hardman by Tullow Oil plc and included within Hardman'sExplanatory Memorandum to shareholders dated 14 November 2006. Hardman will provide additional information on the results of the operator'sreserves review for Chinguetti when that review is made available to the jointventure. SIMON POTTERCEO and Managing Director Note: In accordance with the ASX Listing Rules and AIM Rules, the hydrocarbonreserves and/or drilling update information in this report has been reviewed and signed off by Mr Andrew Patterson, B Eng., Technical Manager at HardmanResources, who is a member of the Society of Petroleum Engineers and has atleast 5 years relevant experience within the sector. He consents to thatinformation in the form and context in which it appears. This information is provided by RNS The company news service from the London Stock Exchange