Signed Revised Mauritania PSC

7 Jun 2006 07:00

Hardman Resources Limited07 June 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 7 June 2006 AUSTRALIAN CONTACTS: Peter Thomas Hardman Resources Ltd +61 8 9261 7600 Jim Kelly Third Person Communications +61 2 8298 6100 LONDON CONTACT: Patrick Handley Brunswick Group +44 207 404 5959 RE: Signing of Revised Mauritanian PSC Hardman Resources Limited ("Hardman") and its co-venturers have signed revisedproduction sharing contracts (PSCs) for Areas A, B, C Block 2 and C Block 6offshore Mauritania, operated by a subsidiary of Woodside Petroleum Ltd("Woodside"), bringing to a close the dispute earlier this year over amendmentsto the original PSCs. In a signing ceremony in Nouakchott overnight, representatives of the IslamicRepublic of Mauritania, Hardman group companies and co-venturers formally agreedto new contracts for the four offshore blocks. The revised PSCs reflect the terms of an agreement signed by Woodside and theMauritanian Government in March this year which resolved a dispute between theparties over previous amendments to the original PSCs. The major elements of the resolution, reflected in the revised PSCs, are: • exploration periods are secured in line with previous arrangements; • a Chinguetti Project bonus of US$100 million (Hardman share 21.6%) shall be paid by the Area B joint venture to the Mauritanian Government following the approval of the revised Area B PSC and subsequent to the gazettal of the revised contract; • fiscal incentives which will provide a modest increase in the share of revenue from the Chinguetti project to the Mauritanian Government during periods when realised oil prices exceed US$55 per barrel; and • establishment of an Environmental Commission, funded through a total annual payment of US$1 million by the joint venturers during the life of production from the revised PSCs. The revised PSCs come into effect after their formal gazettal in the OfficialJournal in the Islamic Republic of Mauritania. PETER THOMASChief Financial Officer This information is provided by RNS The company news service from the London Stock Exchange