Hardman Resources Limited ("Hardman") provides the following progress report on its Mauritania offshore activities:

PSC Area B: Labeidna-1 Exploration Well

The Labeidna-1 wireline logging and sampling programme and an initial evaluation has been completed. The well is currently being plugged and abandoned as planned.

As previously reported, the initial wireline and drilling data indicated that the well intersected oil in the Miocene sand objective within a number of thin sands interbedded with shales. This provided sufficient encouragement to proceed with further wireline logging including acquisition of pressure and sample data and high resolution logs necessary to better define which of these interbedded units has adequate reservoir characteristics.

The logging and sampling programme has now been completed and the pressure data indicates the oil is in two separate accumulations over a total column in the well of approximately 120 metres. The high resolution logs and subsequent reinterpretation of the 3D seismic data suggest the oil is reservoired in channel margin or overbank sands. A sidetrack targeting interpreted channel sands was considered but would not reach far enough to test interpreted thicker and better developed reservoir. A separate appraisal well would more adequately evaluate the discovery.

Labeidna-1 was drilled to a total depth of 3,080 metres and is located approximately 15 kilometres to the south west of Chinguetti in 1,261 metres of water.

Hardman's CEO Mr Simon Potter commented:

"This represents another discovery in the Chinguetti-Banda channel system. While it is unlikely to be commercial at the Labeidna-1 location appraisal is required to evaluate the commercial significance of this discovery. It's not unusual to have reservoirs thin onto a salt diapir and our interpretation of the well and seismic results is that thicker channel sands are located downdip and adjacent to the discovery well. Our experience from the development drilling on the nearby Chinguetti Field is that once we have a well to calibrate the 3D there is a high chance of success in locating better reservoir channel sands in subsequent sidetracks or new wells. This is within tieback distance to the Chinguetti Field."

All reported depths (except water depth) are referenced to the rig rotary table (RT). Hydrocarbon shows will be only be reported after all required logs have been run and evaluated, although Hardman will release weekly updates on the exploration drilling campaign.

Times and dates refer to GMT (Mauritania time), 8 hours behind Western Standard Time, Perth.

SIMON POTTER
MANAGING DIRECTOR

Note: In accordance with Australian Stock Exchange Limited listing requirements, the geological information supplied in this report has been based on information provided by geologists who have had in excess of five years experience in their field of activity.

This information is provided by RNS
The company news service from the London Stock Exchange