Hardman's Waraga-1 Encounters Oil

Hardman Resources says the Waraga-1 well has been drilled to a depth of 1,768 meters. Wireline logs, including wireline pressure and sampling tools, were run at this depth to investigate hydrocarbons encountered in the well (elevated gas readings and oil shows). Subsequent evaluation of these logs and pressure measurements indicates a gross hydrocarbon interval of 32 meters with a net pay ratio of approximately 50% and the hydrocarbon type is interpreted as oil. Samples are yet to be recovered from the well because of problems with the wireline sampling tool. No oil water contact has been observed although the well has now passed into probable water bearing sands below the hydrocarbon interval.

Multiple objectives are interpreted in this prospect and, on the basis of seismic correlations between Waraga-1 and Mputa-1, we still expect to intersect deeper objectives, similar to the oil bearing intervals in Mputa-1, before Waraga-1 reaches total depth.

On March 5th the well was drilling ahead at 1,872 meters towards a revised planned total depth of approximately 2,050 meters. Wireline logs including a pressure and sampling program will be conducted to further evaluate this reported hydrocarbon interval and the expected deeper objectives.

Waraga-1 is located 19 kilometers to the northeast of the recently drilled Mputa-1 oil discovery well and 41 kilometers southwest of the Butiaba Waki-1 well (drilled in 1938). Waraga-1 is testing a structural prospect with identical geological targets to the oil bearing reservoirs seen at Mputa-1. The Waraga prospect was defined by the 2005 onshore seismic survey and the geological risk was significantly reduced by the success of Mputa-1."