Hardman Resources reports that the Falkland Islands
authorities have granted a two year extension to the license totaling approximately
33,500 square kilometers to the south and east of the Falkland Islands. Hardman holds a 22.5%
interest in the joint venture with Falklands Oil and Gas ("FOGL", 77.5% and Operator). As a
result of this extension, Phase I of the license now runs until July 2007 and Phase II will run
(subject to a drilling commitment) from July 2007 until July 2010. During Phase 1 FOGL
(77.5%) and Hardman (22.5%) will be required to acquire and interpret an additional
4,000 kilometers of 2D and 2,000 square kilometers of 3D seismic, and to enter Phase II in
July 2007, FOGL and Hardman will be required to commit to the drilling of two wells.
The extension will allow more time to investigate and assess the increased number of identified
leads from the approximately 4,000 line kilometer seismic survey completed in the first quarter.
Preliminary review of the early processed sections has also lead to the identification of several
additional leads which could warrant further work.
A new 4,000 kilometer 2D seismic survey has already commenced and the joint venture expects
to conduct the 3D seismic survey later this year and into 2006.