HDR hardman resources limited


  1. 3,559 Posts.
    11th September 2002

    ("Dana" or the "Group")


    The board of Dana is pleased to announce that an agreement has been reached with Energy Africa Mauritania Ltd.("Energy Africa"), a wholly owned subsidiary of Energy Africa Limited, whereby Energy Africa will farm-in to earn a 32% interest in Block 1 offshore Mauritania.

    Dana will remain as Operator for the enlarged group of participants in Block 1, with a 48% interest in the Production Sharing Contract, and is spearheading a new work programme to accelerate exploration in this area. Attractive prospects have emerged from two successful 2D seismic surveys, and acquisition of a large 3D seismic programme is now expected to begin before year-end. This should lead to the finalising of drilling targets by mid 2003.

    Energy Africa is Dana's neighbour in Block 2 and its team has a track record of finding oil in West Africa, so their participation should benefit the Block 1 group as Dana progresses the exploration programme. The farm-in agreement is subject to the approval of the Government of Mauritania.

    Participating interests in Block 1 following the farm-in will be:

    Dana (Operator) 48%
    Energy Africa 32%
    Hardman Resources 18%
    Roc Oil 2%

    As a result of Dana's strategic farm-outs to Woodside (Block 7) and now Energy Africa (Block 1), Dana has significantly reduced its exploration costs and risk, yet has still retained the majority of its upside with large interests in Blocks 1, 7 and 8 of 48%, 51.43% and 80% respectively.

    Exploration offshore Mauritania is gathering pace, with Woodside's recent successful well appraising the Chinguetti oil field and further wells planned this year in Block 4 and Block 6. Dana now holds a very strong position in this emerging region and looks forward to reporting further developments on its Blocks 1,7 and 8 in due course.
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