Hardman Resources to Suspend Mputa-1 Wildcat

The joint venture partners in the Mputa-1 wildcat well have decided to case and retain the well. Current operations are suspending the well prior to running casing.

Casing and suspending the well will allow for re-entering at a later date, potentially to:

-test and flow individual zones;
- obtain better fluid property information; and/or
- use the well in any future appraisal or development operations.

In respect of the previously reported sand interval at 965 to 975 meters, black, waxy oil samples have been recovered. Whilst drilling, increased gas readings and oil shows were seen over a gross interval from 965 meters to a total depth of 1,186 meters, although it was not possible to test these deeper intervals with the current wireline equipment. Although individual sand units encountered were thinner than pre-drill expectations, this result provides encouragement for the further appraisal of this discovery and exploration of nearby prospects.

It is not possible to comment on potential volumes or commerciality of the discovery until further data including oil flow rates and column heights can be determined, either from re-entry of Mputa-1 or further drilling.

Following casing and suspension of Mputa-1, the rig will move to the Waraga-1 location. This is anticipated to take 14 to 21 days, and Hardman will resume routine reporting on operations at this location closer to the spud date.

The discovery at Mputa-1 significantly reduces the risk for Waraga-1 and future exploration. The Mputa-1 result proves that the required elements of mature source rock, good quality reservoir, valid trap and sealing shale formations all exist within the basin. The critical pre-drill risk at Mputa-1 was seen as seal integrity, and the fact that a series of thick shales exist and are able to seal a faulted trap is very encouraging for other prospects in the basin.

Block 2 participants are Hardman Petroleum Africa Pty Ltd as operator with 50% and Tullow Oil with 50%.