Hardman Signs MOU with Ugandan Government
Hardman Resources Limited through its wholly-owned subsidiary Hardman Petroleum Africa Pty Ltd, operator of the Block 2 Joint Venture, says that the Government of the Republic of Uganda, Hardman and its co-venturer Tullow Oil plc, have signed a Memorandum of Understanding relating to future investment plans and license obligations for Block 2.
The MOU includes commitments by both the Joint Venture and the Government to advance appraisal and development activities to realize the full potential of the existing Block 2 discoveries and provide time for the continuing active exploration of the remainder of the block.
The next well in the 2006 exploration program is Nzizi-1, an up dip appraisal well to the south west of the Mputa discovery which is anticipated to spud by early November. The Joint Venture will also undertake further 3D and 2D seismic surveys to define the volumes of the existing discoveries better, develop infill locations, as well as to explore the northern area of the block to identify prospects for drilling in 2007 and 2008. In addition, the Joint Venture will continue to evaluate the most effective manner to drill offshore prospects in Lake Albert by the end of 2007.
In parallel with these exploration and appraisal activities, the Joint Venture and Government have also agreed to review the early development potential of hydrocarbons already discovered by commencing concept studies for an Early Production System (EPS). This will determine the commercial and technical feasibility for early production. Any such development could initially comprise production and processing facilities to fuel a local power station (of around 50MW capacity) and potentially also supplying a mini-refinery.
Simon Potter, CEO & Managing Director of Hardman Resources, commented:
"We appreciate the Ugandan Government's strong support for our operations since the oil discoveries at Waraga and Mputa. Confidence in the existing resource base and the market potential allows us to consider an Early Production Scheme. Further success in the planned exploration program could lead to significant expansion of domestic plans or an export option. We look forward to continuing to work closely with the Government to commercialize the oil found in Uganda to benefit all stakeholders."
Joint Venture Equities in Block 2 are Hardman Petroleum Africa Pty Ltd as Operator with 50% and Tullow Oil with the remaining 50%.
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