HDR hardman resources limited


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    Mauritania gamble pays off for Hardman, Woodside
    August 19, 2002

    Hardman Resources (HDR) gushed up 14% this morning after the company reported that the Chinguetti- 4/2 well off Mauritania had struck “significant oil bearing sands”. Operator, Woodside Petroleum (WPL) was also lifted by the news, up 1.4% at lunch.

    “Preliminary evaluation of the wireline log data indicates that the well has intersected several oil bearing sandstones in the primary objective over a gross hydrocarbon interval in the well of 94 metres,” Hardman said in a statement to the ASX.

    Another shallower zone contains gas bearing sandstones over a 3 metre interval.

    More importantly, Hardman said the well’s partners had decided to go ahead with a production test of the well, which is being drilled in deep water off the coast of the French West African country. It is thought the remote and relatively deep well could be costing the partners as much as $1 million per day.

    “Following completion of the logging programme, the Joint Venture has agreed to undertake production testing over portions of the primary oil zone during the next two week period…”

    The Mauritanian project shot to prominence last year after the Chinguetti-1 wildcat well first encountered oil-bearing sands in May 2001. However, a follow-up well came up dry and drilling was suspended for nearly 12 months until the results could be further analysed an assessment made of the next targets.

    The Chinguetti-4/2 well lies 2.5 kilometres north of last year's wildcat Chinguetti discovery and was drilled to total depth of 2,655 metres.

    Hardman has a 21.6% stake in the well, together with Woodside (35%), Fusion Oil & Gas NL (6%), ROC Oil (2.4%) and ENI Agip British Borneo (35%).

    SHAW Stockbroking’s resources analyst Mr Andrew Richards commented: “We believe that the field has the potential to add around 30c per share to the NPV [net present value] of Woodside and slightly more for Hardman.”

    At 1218 AEST, Hardman Resources shares were 9c or 12% to 83c while Woodside Petroleum shares were trading 22c higher at $13.78.

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