Hardman Pleased with Mputa-1 Tests

Hardman Resources Limited provided the following update on its flow testing and exploration drilling operations:

Hardman has completed a successful testing campaign at the Mputa-1 discovery well. Since our last announcement on 15 August, the upper sand interval has now been tested on natural flow. Results from both zones tested are summarized below:

--Lower Sand Zone Test (DST 2): Perforated interval (m)--1,118.0-1,126.0; Choke--32/64"; Flow (bopd)--300; Oil quality (°API)--32
--Upper Sand Zone (DST 3): Perforated interval (m)--966.5-974.5; Choke--40/64"; Flow (bopd)--820; Oil quality (°API)--33.

The test results prove not only that the oil at Mputa is mobile, but also that the reservoir sands are capable of producing dry oil under natural flow at potentially commercial rates. The latter aspect is particularly significant, given that the Mputa reservoirs are at shallower depth, and are hence at lower pressure and temperature than the corresponding reservoir units at Waraga. This positive test result therefore expands the operating envelope over which typical Waraga and Mputa crudes (32 °API) can be produced and eliminates pre-test concerns over oil viscosity and fluid properties at these shallower depths.

Although laboratory confirmation is still awaited, the gravity of all oil flowed at Mputa is similar to that found in the lower units of the Waraga-1 well and is likely to be of similar origin. The Mputa-1 well is located 220 kilometers northwest of the Ugandan capital Kampala and 8 kilometers from the shore of Lake Albert. The Waraga-1 well is located 19 kilometers to the northeast of Mputa-1.

This concludes the testing program at Mputa-1. The well is presently being suspended and the rig and test crew are being stood down. Initial guidance on volumes will be included in the company’s Half Yearly Report on 29 August 2006.

Equities in Block 2 are Hardman Petroleum Africa Pty Ltd (Operator), 50% and Tullow Oil, 50%.


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