Hardman Says Waraga-1 Tests Exceed Expectations

Since June 27th a flow rate of approximately 4,200 barrels of oil per day (bopd) was achieved from the lowermost zone at Waraga-1 well. Now Hardman has completed testing of the middle of the three zones to be flowed at the Waraga-1 location and commenced testing of the upper zone.

From the middle perforated interval from 1782 to 1792.5 meters the well flowed at an average of 2,400 barrels of oil per day (bopd) through a 36/64" choke. Following a shut-in period the well was flowed through a 1 choke at a sustained flow rate of approximately 4,200 bopd. The quality of the oil is the same as tested in the lower zone of the well, being a light (33.8‹API), but waxy, crude.

As of midnight on July 3rd, the third and final interval was perforated from 1680 to 1710 meters. This interval flowed heavier (18.5 ‹API) oil at a stabilized rate of 2,115 bopd through a 36/64" choke. The well is currently shut in for pressure build up prior to the final flow period with results expected before the end of the week.

Following the conclusion of testing at Waraga-1, the rig will move to the Mputa area for testing which is expected to commence by late July/early August.

Simon Potter, Hardman's Managing Director and CEO, commented:

"Flow rates from all zones tested to date have exceeded expectations. Potentially, this reduces the reserves threshold for development as commercial exploitation would require fewer wells and thus a lower capital commitment." Equities in Block 2 are Hardman Petroleum as operator with 50% and Tullow Oil with the remaining 50%.