Uganda Drilling Update

23 Jun 2006 07:00

Hardman Resources Limited23 June 2006 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 23 June 2006 AUSTRALIAN CONTACT: Simon Potter 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 TESTING PROGRAMME Hardman Resources Limited ("Hardman") provides the following update on itsoperated drilling activities in Uganda: Production Testing Update: Waraga-1 Oil Discovery, Uganda Hardman confirms that the lowermost zone in the Waraga-1 well was successfullyperforated at 09:00hrs on 22nd June 2006. The well flowed oil to surface and astabilised rate has been established sufficient to derive composition, flowcharacteristics and key reservoir parameters. Initial results show a flow rateof c.1,500 bopd of 33.8 degree API oil through a 36/64" choke. The well is nowshut in for pressure build up prior to further flow testing later today. This lower zone will continue to be tested over the next 48 hours. Subsequently,further flow tests will then be conducted on the two other identifiedhydrocarbon bearing horizons in this well. Testing on all three zones atWaraga-1 is estimated to take approximately 14 days. Following testing at this well location, the future programme at Mputa will bedetermined. The next testing programme update is scheduled for Tuesday, 27thJune. Simon Potter, Hardman Managing Director and CEO, commented: "The Hardman-operated exploration programme in Uganda has delivered threediscoveries in the first three wells and now the first oil flow not only forUganda but also in East Africa, south of the Sudan. The hydrocarbons flowing tosurface from the first of three potentially productive zones in a single wellgive further grounds to establish the commercial potential of the region. Wealso note that these zones are represented in the other wells, which isindicative of the areal extent of these sands and play systems. However, it isimportant to bear in mind that Hardman's exploration programme in Uganda is atan early stage. Over the next 18 months we look forward to more fully appraisingthe potential of this licence, including the highly prospective area under LakeAlbert, where geological analysis suggests there is significant further upsidepotential." 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 referencedto the rig rotary table (RT). SIMON POTTERManaging Director and CEO 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 hasbeen reviewed and signed off by Mr David Cliff, BSC Hons (Geology), ExplorationManager at Hardman, who is a member of the Petroleum Exploration Society ofAustralia and who has at least 5 years relevant experience within the sector. This information is provided by RNS The company news service from the London Stock Exchange