Waraga-1 Suspended Ahead of Testing

The Waraga-1 well has been cased and suspended at a total depth of 2,010 meters pending the commencement of a well testing program.

Pressure tests and samples from the lower zone of interest between 1,780 and 1,930 suggest the presence of two oil columns in a number of sands of varying thickness and quality through a lower net section. Oil samples recovered from an excellent reservoir sand at 1,893 meters appear to have a similar gravity to the oil recovered in another, previously reported, shallower zone at approximately 1,700 m. Pressure data suggest that this shallower 32 m gross interval represents a 45 m light oil column in a better net reservoir sand section.

Testing of this well and the Mputa discovery will provide better information on the reservoir than is available from the wireline logs and confirm oil properties. Additional appraisal drilling is being planned to determine the location of oil water contacts and target potential improved reservoir intervals.

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 tested 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.

Equities in Block 2 are Hardman Petroleum Africa Pty Ltd as Operator with 50.0% and Tullow Oil with the remaining 50.0%.