Hardman Sells Stake in Gabon Assets

Hardman Resources has entered into an agreement with Ascent Resources to sell two wholly-owned subsidiaries, Gabon Investments (Iris Marin) Pty Ltd and Gabon Investments (Themis Marin) Pty Ltd. These companies hold a 12.86% participating interest in the Iris Marin Production Sharing Contract and in the Themis Marin Production Sharing Contract respectively.

The Iris Marin and Themis Marin PSCs cover two shallow water exploration concessions offshore Gabon of 902 square kilometers and 607 square kilometers respectively.

The other partners in both PSCs are Fusion Oil & Gas with 20.57%; Premier Oil with 18.00%; Petroleum Oil & Gas Corp of South Africa with 22.86%; and Sunburnt Downs Pastoral Company with 25.71%

Initial consideration for the acquisition will be the issue of 12 million new ordinary shares of Ascent to Hardman. Following completion, Ascent shall reimburse Hardman for US$515,765 of past costs. Further payments will be made to Hardman of A$500,000 in the event of successful recovery of hydrocarbons on testing from a well in either of the PSCs, and A$700,000 on issue of governmental approval for production from either of the PSCs.

Since entering into the PSCs in November 1999 Hardman has carried out comprehensive technical work on the two contract areas, including mapping and interpretation of new 2D and 3D seismic acquired by the joint venture. In reviewing its exploration portfolio the Company has now concluded that its interests in the Gabon projects are less substantial than other project areas. Accordingly the Company has decided to rationalise its portfolio by selling these interests to Ascent, thereby freeing up resources which can be applied to higher-priority projects.