HDR hardman resources limited

JB Were Research Report

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    Hardman, Woodside get positive offshore results

    AAP 11/Oct/2002 20:06:29

    Woodside Petroleum Ltd and Hardman Resources Ltd could make a development decision on their project off the Mauritanian coast next year after the partners received more positive drilling results.

    A preliminary evaluation of wireline log data confirmed the presence of oil bearing sandstones over 114 metres in the Chinguetti 4-4 appraisal well which lies 1.5 kilometres east of the Chinguetti-1 discovery well.

    The new results come just over a week after Woodside picked up a further 10 million shares in Hardman, lifting its stake to around 10 per cent and sparking rumours it was positioning itself for a move on the junior company.

    Hardman said evaluation of the wireline logs, pressure measurements and wireline fluid samples confirmed that the Chinguetti 4-4 well had intersected gross oil pay of 114 metres in the A sand reservoir and located the oil-water contact in the southern, downthrown part of the field.

    Managing director Ted Ellyard said Hardman was encouraged by the results, especially the confirmation of a deeper oil water contact in the Chinguetti 4-4 well.

    He said it gave the joint venture the opportunity for a "commercially robust" project without further testing or appraisal drilling.

    "We and the joint venture will be examining these results and the other reservoir and engineering studies currently underway as we work confidently towards a development decision in 2003," Mr Ellyard said.

    He said it would take some time to complete the studies on the Chinguetti field, however, the joint venture expected the oil reserve estimate for Chinguetti would be greater than Hardman's earlier estimate of 110 million barrels recoverable.

    Woodside said that following the completion of the logging program, it would plug and abandon the well and return to the temporarily suspended Chinguetti-4-2 well to complete plugging and abandonment operations.

    Hardman shares jumped three cents on the news to 69 cents on turnover of 4.16 million but Woodside closed 41 cents lower at $12.09.

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