Hardman Resources Say Mputa-2 Appraisal Well Confirms Lateral Extension

Hardman Resources says the Mputa-2 reached a total depth of 1,344 over the weekend, shallower than the planned depth for the well of 1,500 meters, as all horizons were intersected high to prognosis.

At midnight on Monday May 22 wireline logs were being run for evaluation purposes.

Mputa-2 is a step-out appraisal well 3 kilometers from the Mputa-1 discovery, with two principal objectives; the first to determine the lateral extent and potential of the upper oil bearing reservoir in Mputa-1 and the second to target the potential for extensive stratigraphic trapping of the thicker lower zone intersected in Mputa-1.

The well confirmed the lateral extent of the upper reservoir sands although this interval appears to be water wet in Mputa-2. A core was taken which will determine reservoir parameters useful for assessing production potential at Mputa-1. The widespread lateral extent of this reservoir unit is encouraging for the potential of the Mputa-1 discovery.

Hydrocarbon shows were encountered in sands in the lower target zone of Mputa-2 and oil samples have been recovered. While this sequence appears to have a reduced nett:gross and thus thinner potential reservoir units compared with the equivalent sands encountered at the Mputa-1 location, the presence of both reservoir and oil at such a step-out is highly encouraging for the exploration of the extensive basin. A decision on whether to case the hole for future testing or completion will be made shortly.

Results from Mputa-2 will be integrated with the results from Mputa-1 and Waraga-1 to determine the reserve potential, commerciality and potential development plans for the fault block which contains the Mputa-1 and Waraga-1 oil discoveries. Planning for the drilling of additional exploration/appraisal wells and the acquisition of further seismic is in progress.

Equipment mobilization is currently underway to flow test the Waraga-1 oil discovery utilizing the Eagle Drill Rig. Testing operations are expected to commence mid June.

Simon Potter, Hardman CEO commented:

"We are at a very early stage in the exploration of this new and exciting basin. We already have two oil discoveries and now a successful appraisal well that has confirmed lateral extension of the reservoirs, the presence of hydrocarbons deeper into the basin and a valid migration pathway from under Lake Albert. This information will now be integrated into our regional understanding for future exploration and appraisal of larger structures under the lake as well as further drilling later in the year onshore".

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


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