Hardman Resources to Suspend Waraga-1 for Future Testing

The Waraga-1 well has been drilled from 1,872 meters to total depth of 2,010 meters into basement and wireline logs have been run. On March 12th wireline pressure testing and sampling program had been completed. Oil samples have been recovered from the 32 meter gross interval previously reported (at a depth of approximately 1,700 meters). Preliminary indications are that this is a light oil of approximately 40 degree API gravity. While no oil water contact was observed, pressure data from the oil interval and deeper water bearing sands suggests a minimum 45 meter oil column for this reservoir interval.

Wireline logs and shows while drilling have indicated a deeper, separate zone of interest from approximately 1,780 meters to 1,930 meters which contains a number of thinner sands. Oil samples have been recovered from a sand at 1,893 meters. Pressure testing and sampling has been conducted, with interpretation of results expected in the coming days to determine the extent of this deeper oil bearing interval and whether it represents one or a number of oil columns.

The well will now be cased and suspended ready for future testing. Planning of that testing program is underway and equipment is being sourced and mobilized.

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 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.