Hardman Spuds Mputa-2 Appraisal Well

The Mputa-2 appraisal well spudded on May 7, 2006, 3 kilometers northwest of the Mputa-1 discovery well and 19 kilometers southwest of the Waraga-1 discovery. Since then Mputa-2 has been drilled to 130 meters and casing is being run and cemented before nippling up the diverter and drilling ahead to the planned intermediate casing point at 500 meters.

Mputa-2 is an appraisal well designed to determine the extent of the hydrocarbon bearing reservoirs seen at Mputa-1. Planned Total Depth of the well is 1500 meters. Seismic data indicates that thicker basal sandstone reservoirs are possible at this location.

Results from Mputa-2 will allow a more accurate determination of the reserve potential, commerciality and potential development plans for the fault block in which Mputa-1 and Waraga-1 have already discovered oil. Success at Mputa-1 and Waraga-1 has confirmed the presence of a working hydrocarbon system and trapping mechanism which merits appraisal and exploration drilling in a number of onshore locations on the fault terrace. In addition to this, the information gained from the 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 the equipment being mobilized for this can be used for testing Mputa-2 if this is successful, or the Mputa-1 discovery.

Equities in Block 2 are Hardman as operator with 50% and Tullow Oil with 50%.

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