After researching this company this week and giving it some thought I have decided to start a new thread with a header that perhaps more accurately reflects where this company is at present.

Hardman has interests in production at its Chinguetti field, offshore Mauritania, where it is currently producing a net 7,000 barrels of oil per day (bopd). This is set to increase as more wells are drilled towards in Q4 2006 and into 2007.

The exploration portfolio is also very strong, with numerous fields being tested over the next eighteen months (see below for more details).

The share price has taken a bit of a battering in the last few months, in common with many E&P stocks, but could in my view be ripe for a turnaround (further explanation follows).







I have done my best to evaluate HNR's prospects.

I was helped by info from the Report to Shareholders for the Quarter Ended 30 June 2006 - see Hardman's website www.hdr.au.com for details

Current Chinguetti production of 37,000 bopd (7,030 net to HNR) and 6,000 from recently-tested Waraga could together justify a market cap of 407 mil using an oil price of $64 as in the last quarter, profit ratio 17% of turnover, P/E 15.

HNR also had 57 mil of net cash at quarter end after debt is taken into account.

Add the cash figure to production-related capitalisation and you have a co with a justifiable market cap of 464 mil, or 63.8p a share. Current SP is 59 / 61.5.

Basically the SP dropped earlier in the year due to the uncertainty over Chinguetti's production figures, caused by unexpectedly low well pressures. The field was supposed to produce 75,000 bopd and is now only producing half of that. Remedial drilling is due to be carried out to create another three wells which should generate another 30,000 bopd total (5,700 net to HNR).

It would seem that the Ching problems have been pretty much priced in now and that the market is looking to further good news from continued drilling.

On my modelling of the situation you basically get all of HNR's other prospects for free. Juicy ones include the potential for a number of 1-billion-barrel-plus discoveries offshore Guyane, which I have been following through my interest in Northern Petroleum (NOP). However, it may be a while before a number of these are drill-ready, plus of course they do have to find commercial hydrocarbons.

To my mind the portfolio seems broad enough to offer a real chance of some big successes.

The SP may jump if Mputa-1 is successful. There is also the possibility of a net 900 bcf of gas at Flamant-1, which spuds shortly.

With lots more drilling promised into 2007, the programme looks to be capable of producing a lot of good news.

Having been bearish on this stock before, I'm now beginning to like the look of what I'm seeing. The current SP is a test of the 59p level hit in mid-June and also December 2005.


DRILLING TIMETABLE.

I have attempted to put together a drilling calendar. It's probably a bit rough and ready, but here goes:

NB No liability will be accepted for the content or accuracy of this list as drilling schedules, etc, may be subject to all kinds of changes. Please refer to Hardman's website and/or news releases for confirmation.

Current (Aug 2006) Drilling Mputa-1, Uganda. Possible net potential 6,000 bopd similar to Waraga-1? Operator: HNR

Current (Aug-Sep 2006) Drilling Flamant-1, Mauritania. Net 900 bcf gas. Operator: Dana

Q4 2006 Chinguetti EDIT: Drilling 1 additional well, Mauritania. Net 1,900 bopd Oil. Op: Woodside

Q4 2006/Q1 2007 Drilling Aigrette-1, Mauritania. Net 16.2% primarily gas. Operator: Dana

H2 2006 Tevet, Labeidna and Banda (estimated net 500 bcf Gas) discoveries, Mauritania, to be evaluated as tie-backs to the Chinguetti facilities. Tevet fast-tracked for development decisions by end 2006. HNR net interest 21.6% or 24.3%, Op: Woodside

Q4 2006/more likely Q1 2007 onwards, Suriname onshore 25-well programme, HNR net interest 40% in a prolific S. American oil province (adjacent fields total 1 bn bbl oil in place, producing 13,000 bopd). Op: Staatsolie

?Q1/Q2 2007 Drilling Kibaro-1, Mauritania. Net 31.5 mmbl oil. Op: Woodside

Q2 2007 onwards. Chinguetti, Mauritania. Up to 4 additional producing wells, plus two injectors to be drilled. Net 7,600 bopd Oil, possibly. Op: Woodside

Proposed 2007, Guyane, drilling various prospects 1 bn bbl oil or more (6 targets according to NOP), HNR net interest currently 97.5% but likely to be reduced on formation of JV. Op: HNR

H1 2007. Tiof, Mauritania. Net interest 21.6% Op: Woodside. Decision due on investment in Tiof. First oil possibly due in Q3 2009, possible initial 10,000 bopd net to HNR.

Late 2007 - Tanzania: Maturation of seismic prospects to drillable status. Net interest 50% Op: HNR

2008 at the earliest: Falklands, drilling. Net 22.5% Op: FOGL


Comments on errors or admissions are welcome. This summary does not include a range of seismic prospects and other potential leads for which dates have not been finalised, many of them in Mauritania.

The potential for the Falklands prospect is huge and I acknowledge Xmortal for having drawn attention to this on his thread of July 2004, however I feel that there is a lot more strength in the portfolio as listed above which will provide both cashflow and a significant lift in the SP long before the Falklands prospects become a reality.

Counting on my fingers (!), there are between now and the end of 2007,something like 13 drilling and/or production instances.

Considering that many of these prospects could add 10p per share in NAV, even if only a few are succesful (and we know that many are dead certs, e.g. Ching and some of the other Mauritanian prospects), one could easily see 1 a share on the basis of a couple of good new discoveries. Something like Flamant-1 could add 20p per share NAV by itself if estimates of recoverable gas are proved correct.

Note: EDIT: We are awaiting a review of reserves for Chinguetti due to the production issues metnioned above. This could halve the previous estimates and accounts for much of theSP wekaness at present.

All in all, I consider that Hardman is getting to the stage where it could be due a turnaround in its SP performance, and where forthcoming exploration and production lend the company an air of credibility as a potential multi-bagger with interests in billions of barrels of oil. EDIT: this may take slightly longer than previously anticipated as the run of disappointing news at Chinguetti is stretching the timetable.

As always, please DYOR, all IMO.

Posted by Seawallwalker:

http://www.newvision.co.ug/D/8/220/514018

Mputa-1 oil tests start
Wednesday, 9th August, 2006 E-mail article
By Emmy Olaki

Hardman Resources on Sunday started testing on the Mputa-1 oil discovery well in exploration area 2 in Kaiso-Tonya in Bunyoro.

Last month, tests in Waraga-1 discovery well on the same exploration area established a flow rate of 12,050 barrels of oil per day.

Waraga-1 is 18km from Mputa-1. After the tests in Waraga-1, the company moved the equipment to Mputa-1 where they are starting tests.

According to a statement, speculative tests on the well have recovered minor amounts of oil, but company officials say this is the beginning of the tests and this result means nothing.

We have just commenced testing and are starting a 10-day programme. It is a progressive test. Until its completed, we wont be able to know what exactly is there, John Morley, Hardmans country director, said.

Results from the speculative tests done on the fractured granite basement where hydrocarbons were encountered during drilling have been attributed to a restricted and tight fracture system.

Flow testing on this discovery well commenced on August 6 and tests of three intervals are planned at this location.

The two principle tests aim at confirming fluid characteristics and flow potential of oil-bearing sand intervals similar to those successfully tested in Waraga-1 a few months ago.

Testing of the two sand intervals should commence towards the end of the week.

Morley said by the end of next week, the company will have a full statement on the findings in the well.

The tests are intended to establish whether the oil can flow out of the ground, and at what rate.

I bought a small initial holding today - got in at 60.68p plus costs.

Rationale: Mputa likely to produce the goods, results to be made known within a few days. Flamant-1 to follow (potentially net 900 bcf gas). If both are successful that should cause a significant re-rating of the SP. If neither succeeds that could cause the SP to dip short-term (creating IMO a buying opportunity given the strength of the rest of the E&P portfolio), but long-term the current SP is justifiable on current plus a small amount of known forthcoming production.

On technical reasons, the SP has just bounced off the 58p-ish support, up over a penny on a day on which the broad market is taking a dive.

HNR current SP: Bid: 59p Offer: 61.5p Change: 1.25

'Ello 'Ello, whats going on 'ere then?

You are right to give this a clean start imo, soul traders.

It is time for a turn around, and this quite probably is it, given your reasoning.

So, let it be.

soul traders

Good work. I agree with your comments re Flamant which is vital to both Hardman and Dana. It would restore some confidence back into Hardman and give a boost to the whole area. There is a great deal of talk of LNG commercialisation if enough gas can be found with GDF thought to be an active participant. Flamant is a huge prospect so we need to keep everything crossed.

Thanks SWW - thought it might generate a little more interest if the thread had a more factual and up-to-date subject field. We shall see.

If not, it's just you and me :o)

I think the next few weeks could be quite interesting with two lots of drilling going ahead.

For those who haven't seen it, the RNS of 8th August regarding latest drilling news from Mputa and Flamant.

Hardman Resources Ld - Uganda Testing Programme
RNS Number:3747H
Hardman Resources Limited
08 August 2006

STOCK EXCHANGE / MEDIA RELEASE

RELEASE DATE: 8 August 2006

AUSTRALIAN CONTACT: Simon Potter
Hardman Resources Ltd
+61 8 9261 7600

LONDON CONTACT: Patrick Handley
Brunswick Group
+44 207 404 5959

RE: UGANDA TESTING PROGRAMME

Hardman Resources Limited ('Hardman') provides the following update on its flow
testing and exploration drilling operations:

Uganda: Mputa-1 flow test - Block 2

At 08:00 on 6 August 2006, flow testing commenced on the Mputa-1 discovery well
in Block 2. Tests of three intervals are planned at this location. Operations
commenced with a speculative test on the fractured granite basement play where
hydrocarbons were encountered during drilling. This test recovered only minor
amounts of oil, likely due to a restricted and tight fracture system.

The two principal tests aim to confirm fluid characteristics and flow potential
of oil bearing sand intervals similar to those successfully tested at Waraga-1
in the last quarter. The testing of the first of two sand intervals should
commence towards the end of this week.

Equities in Block 2 are:
Block 2
Hardman Petroleum Africa Pty Ltd (Operator) 50.0%
Tullow Oil 50.0%

Times and dates for Ugandan wells refer to Uganda time (GMT+3 hours), five hours
behind Western Standard Time (Perth).

Mauritania: Exploration drilling update - Block 8

The Atwood Hunter drill rig was released by the operator Woodside on 5 August
2006 following the plugging and abandonment of the Colin-1 well and has been
relocated to Block 8, to drill the Flamant-1 exploration well. The well is
expected to spud by the end of this week.

Equities in Block 8 are:
Block 8
Dana Petroleum (Operator) 41.5%
Hardman Resources Ltd 18.0%
ROC Oil Company 2.0%
Wintershall 25%
Gaz de France 13.5%

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



SIMON POTTER
Managing Director and CEO


Note: (1) In accordance with the ASX Listing Rules, 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.
(2) In accordance with the AIM Rules, the information in this report has
been reviewed and signed off by Mr David Cliff, BSC Hons (Geology), Exploration
Manager at Hardman, who is a member of the Petroleum Exploration Society of
Australia and who has at least 5 years relevant experience within the sector.

Thanks Churchill2 - HNR certainly have some decent prospects and hopefully these can be converted into producing assets. As you say, keeping everything crossed, but with the potential in this portfolio, I think it's a matter of time rather than a matter of luck. It would definitely be good to have GDF on board for the gas as they have plenty of clout - as long as they don't cause too much dilution or slow down the timetable as big companies can sometimes do to tiddlers.

Mildly encouraging news out today: oil shows at Mputa plus work begins at Flamant.

Hardman Resources Limited
15 August 2006

STOCK EXCHANGE / MEDIA RELEASE

RELEASE DATE: 15 August 2006

AUSTRALIAN CONTACT: Peter Thomas
Hardman Resources Ltd
+61 8 9261 7600

LONDON CONTACT: Patrick Handley
Brunswick Group (UK media relations)
+44 207 404 5959

RE: SUCCESSFUL UGANDA FLOW TEST AND MAURITANIA
DRILLING UPDATE

Hardman Resources Limited ('Hardman') provides the following update on its
exploration drilling and flow testing operations:

Uganda: Mputa-1 flow test update - Block 2

On 12 August 2006, oil was successfully flowed to surface from the sands tested
from DST #2 in the Mputa-1 exploration well, yielding an average flow rate of
300 barrels of oil per day of 32degrees API oil through a 32/64' choke, with no
water production and low gas to oil ratio.

The sand tested by DST#2 is a relatively thin interval (2 - 3 metres), which
gave an indication of hydrocarbons whilst drilling but did not yield definitive
wireline pressure testing results during the original drilling operation. The
gravity of the recovered oil is very similar to that seen in the lower zones at
the Waraga-1 well 19 kilometres away which is likely to be of similar origin.

Final flow and build-up tests are currently being concluded after which the main
oil-saturated sand in the discovery well (965 to 975m interval) will be tested
by DST#3. Testing of this final interval is anticipated to commence later this
week.

The Mputa-1 well is located 220 kilometres northwest of the Ugandan capital
Kampala and onshore 8 kilometres from Lake Albert. The Waraga-1 well is located
19 kilometres to the northeast.


Equities in Block 2 are:
Block 2
Hardman Petroleum Africa Pty Ltd (Operator) 50.0%
Tullow Oil 50.0%

Times and dates for Ugandan wells refer to Uganda time (GMT+3 hours), five hours
behind Western Standard Time (Perth).


Mauritania: exploration drilling update - Block 8

The Atwood Hunter drilling rig spudded the Flamant-1 well offshore Mauritania in
Block 8, at 1:15am on 11 August 2006. Over the last 48 hours a pilot hole has
been drilled to a total depth of 1,905 metres to check for shallow gas and
preparations are now underway to drill the main well bore.

Flamant-1 is targeting a large Cretaceous Carbonate platform/reef prospect in an
area of different geology to the rest of the offshore Mauritanian basin, which
holds significant potential, primarily for gas, and is recognised as the best
test of a large regional high with both primary and deeper secondary objectives.
Water depth at this location is approximately 1,400 metres.

Equities in Block 8 are:
Block 8
Dana Petroleum (Operator) 41.5%
Hardman Resources Ltd 18.0%
ROC Oil Company 2.0%
Wintershall 25%
Gaz de France 13.5%

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

The oil flow at Mputa-1 doesn't sound like much, at 300 bopd (150 net to HNR). The good news is, however, that being onshore, there is the potential to put down a herd of nodding donkeys and significantly increase production. It would appear that the oil is also of good quality and so this looks like a good development, IMO.

It's also worth noting that the level just tested was a very thin interval and that DST#3, to be tested over the coming week, is likely to produce oil in greater quantites as the interval is three times the thickness.

I'm interested by the apparent speed of progress at Flamant - hopefully this will also prove rewarding!

Hello soul traders.

Any result is good upwards.

In respect of Flamant, they have drilled a pilot hole with a sniffer on as they dont want any nasty surprises, I hope.

If there is gas and it's under pressure, it is wise to be cautious.

I thought about having more, but I will wait till Woodside report overnight and see that they have to say about thier prospects and plans in Mautiania.

Meantime I understand that Simon Poter is in Uganda, dont know why.

It's not for nothing though, good or bad.

Hi ST,

Saw your post on the DNX thread.

Are you concerned about the Mauritania Energy Ministry messing with the Production Sharing Contracts ( PSC ) ?

It seems like ( although I haven't looked into HNR much ) HNR would face greater exposure then DNX.

Cheers

whatuwwant - Mauritania wont mess around with them, they have just settled a dispute over the terms and Woodside JVP have paid $100m as compensation.

No more trouble from that direction.

Thanks sww !!

Thanks Seawall - without digging through a load of RNS I wouldn't have been able to answer that question!

The good thing is that kind of issue has bren through the mill and is unlikely to reoccur.

I generally know what where and when for Hardman.

Uganda still looks good.

Most feel the oil is deposited in traps caused by the fault lines, and the thought is that these will be frequent throughout the Albertine Graben, however there way well be a large deposit under Lake Albert..................


Nzizi followed by Ngamwa are the next Hardman drills to happen dont know when, it's all slow going there at the moment. These are expected to apparise further the on shore area, but Ngassa will be the first off shore drill, that is being reviewed now as to when and how that will happen.

Peel Hunt:-

"Hardman Resources (HNR) Uganda flow rate FCAST: No Change REC: BUY
After a failed speculative test in basement, there was a successful test on the lower (and poorer) sands in the Mputa-1 well. The preliminary flow rate of 300 b/d could improve with further clean up and we would look forward to further better flow rates in the upper sands. The Hardman share price has been hit hard with disappointment over the Colin dry hole in Mauritania but the further downdraft on the failed basement test was unwarranted. At 58p, the share price is discounting a very poor outlook for the reserves in the producing Chinguetti field and gives no value at all to Uganda. We reiterate our Buy recommendation."
Research Analyst - Tony Alves

Thanks to entrust over on TMF for finding this.

Nice to find my sentiments confirmed by the pro's - good post Seawall, thanks! Good summary in post #16 too!

Don't let me stop right now....click here

Uganda
------
Heritage commenced mobilization of the drilling rig to the Kingfisher-1 wellsite in Block 3A and expects to spud the first well of a two-well initial program shortly. The Kingfisher prospect, which is a large structural high,extends out into Lake Albert and can be conveniently drilled vertically fromthe lakeshore. Exploration prospects have improved substantially following thecompletion of the Waraga-1 well test in Block 2 (which lies immediately north of Heritage's permit) during July 2006 by Hardman Resources (operator). The well test produced an aggregate maximum flow rate of 12,050 barrels per day (bpd) from three zones.

This is the one to watch imo.

Good oil here and Uganda is away.

Here is what Heritage are targeting, (taken fromtheir June 2006 presentation),

Heritage to drill Kingfisher oil prospect in Summer
2006. Potential STOOIP > 1 billion barrels

Number of other high impact targets in the lake
mapped from seismic

Heritage Presentation

i ask whether or not Tullow (TLW), who hold the other 50% interest in Mputa, is a better bet that HNR

cynic always nice to see you visiting.

TLW vs. HNR:- what answer did you come up with?

Mine is probably, Tullow because it is more established than Hardman, the latter currently dependant on revenues from Chinguetti, (with all it's faults).

Hardman are invbolved in drilling currnetly in Mauritania, which keeps throwing dusters, comparable to the sucess rate of Tullow of late, so no difference there.

Hardman could be hit again if Chinguetti is downgraded for reserves, there will be more on that later today once I have seen Woodsides Interims.

Meantime here is another item to read.

FINANCE
Hardman buoyed by Ugandan oil flows
JOHN PHACEAS
393 words
16 August 2006
The West Australian
STATE
59
English
(c) 2006, West Australian Newspapers Limited
"Hardman Resources expects to come up with an initial reserve estimate for its promising Ugandan oil discoveries before the end of the month, after yesterday confirming healthy oil flows from the Mputa field.

Hardman, which reported a combined flow-rate of 12,000 barrels a day from its nearby Waraga-1 well near Lake Albert in June, yesterday reported the Mputa-1 well had flowed at an average of 300 barrels a day during testing of a thin 2-3m interval first discovered earlier this year.

Importantly, testing of the main oil-saturated sands, measuring more than 10m, will be tested later this week. The results should be known by next Tuesday.

The promising results briefly helped Hardman shares shake off pessimism associated with production problems at the Woodside-operated Chinguetti joint venture in Mauritania, pushing the stock as much as 3 per cent higher before it closed 0.5 up at $1.405.

However, the stock is down more than $1 since it touched $2.50 in April on the back of its discoveries in Uganda, where it is a 50-50 partner with the UK's Tullow Oil.

Managing director Simon Potter was in Uganda and could not be reached for comment yesterday, but finance chief Peter Thomas said the Mputa-1 results were a further indication the Ugandan venture would yield a commercial development.

"It proves that oil will flow to surface and encourages us that we will get to a commercial development," Mr Thomas said.

He said little could be read into the comparative flow-rates at Mputa and Waraga because of different reservoir characteristics. However, there was more "volumetric upside" at Mputa than Waraga, he said.

"Conceptual development studies" had already begun with a view to achieving early production, with several different scenarios under evaluation, initially focused on supplying Uganda's domestic market, he said.

Mr Thomas said Hardman also expected to complete initial oil-in-place and likely recoverable reserve estimates by the time it handed down its first half results on August 29.

By then it should also know the results of the vaunted Flamant gas well in Mauritania. The Flamant well was spudded yesterday and is viewed as a potential five trillion cubic feet (of gas) field capable of becoming an LNG supplier to Europe."

From The Sydney Morning Herald

Rememeber this is a newspaper story!


"It seems that Macquarie Equities analysts aren't quite as bullish on the oil prospects in Mauritania as joint venture partners Woodside Petroleum, Hardman Resources and Roc Oil have let on so far.

Early production difficulties at the Chinguetti development have dampened the investment bank's reserve expectations for the Tiof and Tevet projects.

"With no official guidance from the operator [Woodside], we have grown increasingly uncomfortable with our reserve estimates," said analyst Andrew Blakely, possibly in the hope that Woodside chief executive Don Voelte would elaborate when his company's half-year results are released today.

Macquarie yesterday slashed its recoverable reserve estimate at the Tiof project in half, from 220 million barrels to 100 million barrels. And the potential for the Tevet tie-back was cut by two-thirds from 75 million barrels to 25 million barrels".

Briefly from Woodside, "Tevet has always been flagged as a tieback to BH, so no surprise there. Tiof FEED now looking at around End of Q1 2007, with FID June 07?, so first oil around mid to end of 2009 then.

In all, I think everyone got nervous with Woodies report after we got ambushed the last time round with their Qtrly. Ching back up to just over 35kbopd after they fixed the compressor issues (2 out of 3 anyway) in June. AFAIUI, Hardman just had another offload last week. So another paycheck on its way to our coffers.

618 synopsis

Woodside half yearly briefing.

Because you can read it as well as I can.

Good stuff, SWW. Looks as if the potential resources at Mputa could be quite large - again good news, particularly if they can up the eventual production by using pump-jacks.

This is interesting stuff .

It shows that Heritage have subdivided up theri southern licenses and are attemping a farm in. it should be bourne in min=d that their southern exploration wells hit oil which was CO2 saturated and therefore uncommercial to produce. CO2 is not present north of that well.



Here is some more with an eventual timescale from John Morely.

http://naturalresources.andnetwork.com/index?service=direct/1/Home/top.fullStory&sp=l49426

More oil deposits found in western Uganda

August 16, 2006, 6 hours, 30 minutes and 49 seconds ago.

By ANDnetwork .com

Hardman Resources, the company prospecting for oil in Western Uganda, has struck more oil deposits at their second well, Mputa-1, further elevating Uganda's hopes of joining the oil producers club.

By Muhereza Kyamutetera & Elias Biryabarema
Mputa-1 lies 8 kilometres from Lake Albert and 19 kilometres southeast of Waraga-1 well, the first well in western Uganda to be tested for commercial petroleum production.

That well, after flow testing all of its three sedimentary zones, was found to possess a daily crude oil output capacity of 12 000 barrels.

In a press statement on Tuesday, Hardman said tests conducted on 12 August on the lowermost zone of Mputa-1 well located in Block 2 of the Albertine Graben yielded 300 barrels of oil per day. Block 2 is jointly owned by Hardman and Ireland-based Tullow Oil with 50% shareholding each.

Immediately the news of new oil discovery hit the Australian Stock Exchange (ASE) where the company is listed, its shares rose markedly, trading 1.4% higher than the previous prices.

The release explained further that the oil whose viscosity (liquid thickness) is a good 32 API is not contaminated with water and has a "low gas to oil ratio".

Oil discovered at Mputa-1, Harman said, is much similar to that found at Waraga-1 well, 19 kilometres away indicating that the two hydrocarbon reservoirs may have a similar origin.

In total, Uganda can now at least produce over 15 000 bopd, a great figure, according to local petroleum experts, considering that some of the African petrol giants like Nigeria, Angola and others started with smaller fractions of the capacity already confirmed in Uganda.

According to the government geologists, the size of the oil deposits that have discovered are a good sign Uganda might produce in millions of bopd when commercial exploitation eventually begins.

However, Hardman country manager John Morley downplayed the possibility that the Waraga reservoir spreads this far.

"We are talking about a distance in between of 20 kilometres and it is extremely unlikely that the reservoir comes this far but once again, this is why we are doing the tests," he said on phone.

He added that it is still a long way before Uganda can make any confirmation of commercially exploitable oil.

"We are just 2% through the process and it will take us at least another 18 months to know exactly what it is we are up against," he said.

After this initial test, Mputa-1 well has now been shut-in for pressure build up and final tests on its bottom most zone will proceed over the weekend.

Hardman's continuing strike of more oil will sustain the nation's soaring euphoria that erupted several months earlier after the first announcement by the company that it had found commercial quantities of oil in western Uganda.

It also anchors the hope that Canada's Heritage oil & gas, which is due to start drilling the Kingfisher prospect on the shores of lake Albert, might also discover oil there since it appears to be the same oil field.

That's a very up-beat article on Uganda's prospects, SWW. Be nice if the zone does extend all the way from Waraga to Mputa, but I think we can dream on :o)

Interesting about the timescale too - I didn't think it would take that long to do the feasibility study, but I guess they now have to design and cost out the whole infrastructure and that will take a while, especilly given that Uganda is virgin territory. However, with the success that has taken place so far and the activity of other oilers in the neighbourhood, it augurs well for the future and for possible co-operations.

st - Ugandan Government want the oil yesterday, and they are about to do anything they can to get it, including fast track production and tax breaks.

My guess is that if Hardman and co do not fall out with them, it will be 12 months start to finish, then a refinery built which will take a good while longer.

You are correct about adjacent oilers, the proviso still being what is found at Kingfisher and in the rest of Hardmans acreage.

I also hold a wedge of TRP which are stashed away should I ever need them.

Word of warning, some dont think much of the acreage for TRP, however I have them as a small punt, also Peter Kingston is the CEO, he is of SOCO fame.

From SOCO website:-

2. Peter Kingston
Non-Executive Deputy Chairman and Senior Independent Director

A member of the Board of SOCO International since May 1997 and Chairman of the Remuneration and Audit Committees.
A petroleum engineer who has worked in the oil and gas industry since 1965 in various roles.
Formerly, a founding director of Enterprise Oil plc, going on to become Managing Director (Technical)and a director of Elf-Enterprise Petroleum Ltd.
Currently, Chairman of Tower Resources plc and a Director of Plexus Energy Limited, a social and environmental advisory network

Email form Heritage

"Attention Business Editors:

Heritage Oil spuds Kingfisher-1 exploration well in Uganda


/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Aug. 17 /CNW/ - Heritage Oil Corporation (TSX: HOC) today
announced that it has commenced drilling the Kingfisher-1 exploration well in
Block 3A, Uganda.
As reported last month, the Kingfisher-1 vertical well will be the first
in Block 3A's initial program. The well will target a large structural high
that is expressed at surface on the lake-bed and has been defined by two 2D
seismic surveys. Kingfisher-1 will be drilled from the lakeshore to a
vertical/total depth of up to 4,000 metres, targeting multiple pay zones. The
well should take approximately 75 days to reach its total depth. Heritage is
the operator of Block 3A with a 50% interest, while Tullow Oil owns the
remaining 50%.
Exploration prospects for drilling in the Lake Albert area have improved
substantially following the recent completion by Hardman Resources of the
Waraga-1 well test in Block 2, which lies immediately north of Heritage's
permit. Hardman Resources (operator) and its joint venture partner, Tullow
Oil, reported in July 2006 that the well test produced an aggregate maximum
flow rate of 12,050 bpd from three zones. The oil quality of 8,400 bpd was
33.8 degrees API, while the remaining 3,650 bpd was 18.6 degrees API.
Heritage's Chairman and CEO, Micael Gulbenkian, commented: "Our
preliminary work in the Lake Albert area suggests that we are exploring in a
promising area and Hardman's recent success there reinforces our own
conclusions. We look forward to successful results from Kingfisher-1."

Seems you came on board at the right time soul.......

Ministers inspect oil sites.....

"Ministers inspect oil sites
Sunday, 20th August, 2006


Fred Kayizzi and Amlan Tumusiime

THE ministers for energy and mineral development on Saturday flew to western Uganda to inspect the Mputa 1 oil well sites in Hoima district.
The trip was reportedly on the instructions of President Yoweri Museveni.

The ministers also witnessed the conclusion of the 10-day testing exercise at Mputa oil well.

The latest tests at Mputa on Saturday established a maximum flow rate of 800 barrels of oil per day jumping from a flow rate of 300 barrels a week ago..................."

Thanks to xmagx on HC.

Of course there is still the thicker area to be resolved, but it is looking very good.

I hope so, Seawall.

Tiny tick-up this morning, too. If Flamant produces the goods it could be all systems go.

HNR Bid: 59p Offer: 62p Change: 1.5

The thing with Mputa will be for the co to develop the field using multiple wells - five or six wells producing over 500 bopd each (not forgetting that HNR have a net 50% interest!) begins to make a noticeable difference to the bottom line.

seawall* .... just caught up with your comment to me of 16th .... i decided to buy into TLW as much as anything else because i have sufficient "very speccy" stocks and as you rightly pointed out, TLW is very substantial and still has plenty of upside

Hi cynic, l I try to have a balanced view across the board.

Sometimes I miss the obvious, but I am glad yuou went for and are happy with Tullow.

I have held them in the past and they were good to me.

Thanks for taking the time to read through all the posts and replying.

Uganda

Great result, and more to the point it looks like better is to come.

Well done Tullow and Hardman

http://moneyam.uk-wire.com/cgi-bin/articles/200608220700139366H.html

Uganda: Mputa-1 Flow Test Update (Block 2)

Hardman has completed a successful testing campaign at the Mputa-1 discovery
well. Since our last announcement on 15 August, the upper sand interval has now
been tested on natural flow. Results from both zones tested are summarised
below:

Test Perforated Interval Choke Flow Rate Oil Quality
(metres) (bopd) o API
Lower Sand Zone (DST 2)1,118.0 - 1,126.0 32/64' 300 32
Upper Sand Zone (DST 3)966.5 - 974.5 40/64' 820 33
TOTAL 1,120

The test results prove not only that the oil at Mputa is mobile, but also that
the reservoir sands are capable of producing dry oil under natural flow at
potentially commercial rates. The latter aspect is particularly significant,
given that the Mputa reservoirs are at shallower depth, and are hence at lower
pressure and temperature than the corresponding reservoir units at Waraga. This
positive test result therefore expands the operating envelope over which typical
Waraga and Mputa crudes (32 degrees API) can be produced and eliminates pre-test
concerns over oil viscosity and fluid properties at these shallower depths.

Although laboratory confirmation is still awaited, the gravity of all oil flowed
at Mputa is similar to that found in the lower units of the Waraga-1 well and is
likely to be of similar origin. The Mputa-1 well is located 220 kilometres
northwest of the Ugandan capital Kampala and 8 kilometres from the shore of Lake
Albert. The Waraga-1 well is located 19 kilometres to the northeast of Mputa-1.

This concludes the testing programme at Mputa-1. The well is presently being
suspended and the rig and test crew are being stood down. Initial guidance on
volumes will be included in the company's Half Yearly Report on 29 August 2006.

Hardman Resources Managing Director and CEO, Simon Potter, commented:

'The positive test results from Mputa are particularly important given that we
map more oil in place in this resource than at Waraga. Natural flow from the
reservoir at these pressures and temperatures are indicative that production
rates could potentially be commercial. Further, collectively the results to-date
indicate that oil from the source interval deep under the lake can migrate all
the way across the rift valley to the boundary fault and thus potentially over
the whole licence, considerably upgrading remaining prospectivity.

The joint venture has presented potential forward options to the Government and
is currently in discussions concerning the way forward on each of exploration,
further appraisal and potential development concepts.'

Equities in Block 2 are:
Block 2
Hardman Petroleum Africa Pty Ltd (Operator) 50.0%
Tullow Oil 50.0%

nice result! ..... happier to have TLW rather than HNR though .... it may be that HNR will provide more fireworks, though as we have seen elsewhere with small stocks, it can be up like a rocket and down like the stick.

Quite right cynic.

This has worked out well for both today.

Tell you what, have a look at my other interest in Uganda, TRP.

http://www.moneyam.com/InvestorsRoom/posts.php?tid=10226#lastread

Morning all, I'm happy with the Mputa results which seem to indicate that HNR's Uganda projects have a bright future.

Good to see that Flamant appears to be making very quick progress towards its target depth.

Nice rise too: HNR Bid: 63.5p Offer: 65.5p Change: 4

From HB's Broker Round Up today:

KBC Peel Hunt has buy ratings for Hardman Resources (HNR.L), Tullow Oil (TLW.L) and JKX Oil & Gas (JKX.L),

Good stuff!

Hardman Resources Ld - Half Year & Chinguetti Update
RNS Number:9918H
Hardman Resources Limited
23 August 2006

STOCK EXCHANGE / MEDIA RELEASE

RELEASE DATE: 23 August 2006

AUSTRALIAN CONTACT: Simon Potter
Hardman Resources Ltd
+61 8 9261 7600

LONDON CONTACT: Patrick Handley
Brunswick Group (UK media relations)
+44 207 404 5959

RE: ADVICE REGARDING HALF YEAR 2006 RESULTS AND
CHINGUETTI UPDATE

Advice regarding Half Year 2006 Results & Chinguetti Update

Hardman Resources Limited ('Hardman') wishes to advise that it will issue its
Interim Results for the Half Year ended 30 June 2006 at 7:30 am WST on 29 August
2006. A copy of an Investor Presentation relating to these results will be
placed on the Hardman website www.hdr.com.au shortly thereafter. The Interim
Results announcement will include additional details on the performance and
outlook for the Chinguetti field offshore Mauritania and provisional estimates
of oil volumes discovered to date in Uganda, following the successful test
results announced earlier this week.

To date, the Chinguetti field operator, Woodside, and Hardman have advised that
the estimated reserves of the field are under review following the significantly
lower-than-expected production. The operator has now advised that the updated
reserve estimates, reflecting the re-appraisal of its geological and reservoir
models, will be provided by the end of 2006.

As an interim measure pending more detailed data being available, Hardman will
provide in its Interim Results announcement its view on those aspects of the
field's potential which can be commented on reliably at this stage. This will
include volumes of oil in place, which as confirmed by the operator have not
materially changed, and estimated recoverable reserves from the existing Phase 1
and planned Phase 2 wells which formed the original development plan. The wells
in this original plan are not likely to recover significantly more than 50% of
the original 2P (proven and probable) reserves estimate of 123 million barrels.
It is not possible at this time to provide a reliable estimate of complete 2P
reserves as this will have to take into account additional recovery from other
future wells in a re-assessed development plan. Ultimate recovery will also
depend on the benefits from the proposed 4D seismic programme in early 2007 and
application of different technical solutions (eg well designs) from those in the
original development plan. The corresponding net entitlement reserves under the
production sharing arrangements are expected to be reduced by a lesser
proportion than changes to the gross field reserves.

Not good news for the SP - a pity as I had thought that this might have been priced in already.

Still, the prospects for the firm going forward rest on more than just the issues at Chinguetti, and once these have been clarified and the uncertainty reduced this may pave the way for more consistent SP growth. I hope!

IMO, PDYOR.

soul - this news really is nothing new.

The problem is someone has said it, and that was ROC.

It'll bounce short term imo, but it is not time to buy on the lows imo.

Clear direction from Woodside is now needed in respect of reserves, mind you Hardman are having their own asessment done.

We shall see. I remain hopeful for Flamant-1 and the rest of the portfolio, but you may be right - there may be opportunities in the future to average down!

Today's take on the ongoing Chinguetti saga from Peel Hunt...

Hardman put out a form of warning on reserves in its Chinguetti field to the effect that the early phase production wells will recover not much more than half of the original estimate of recoverable reserves i.e. around 63 million barrels. The proper review of reserves being conducted by the operator Woodside is unlikely to result in a definitive answer until late in 2006. It now looks likely that the reserves will not turn out to be better than our running estimate of 90 mmbbls, with possibly more wells required to extract them. The fall in the shares overnight in Australia is understandable but we think prices in the bad news. Our Core NAV estimate (currently 68p) may come back a bit but probably not to below 60p once we have re-cast the numbers again. Hardman is releasing its interim results next Tuesday, 29th August and will provide more guidance then. Meanwhile, it may be a brave call but we are still buyers.

Entrust

ML downgrade...to neutral:

Snip:

We have reduced 2007 and 2008 production forecasts by 23% and 36%
respectively (refer chart 1) given the change in the timing of drilling additional
development wells and suggested reserve reduction.
Previously we had been assuming that up to three wells would be drilled in 4Q06
lifting production to around 45,000bopd. The most likely outcome is that now only
one well will be drilled late 2006 given availability of subsea trees. If the JV
elected to drill more wells in 4Q06 it would be required to retrieve subsea trees
from northern wells and with current rig rates, this is unlikely to be an economic
option.
Whilst no individual well location or budgets are yet to be approved by the JV we
understand that long-lead items for up to four producer wells have been ordered
for the 4Q07 drilling program. Choosing optimal well locations is likely to be
deferred until results from the proposed 4D seismic program are interpreted."

....NAV estimate A$1.70 per share.


ee (From TMF)

SWW - thanks for those posts; that helps to clarify the situation a little.

In the light of this I am not surprised that the SP has dropped, however I guess the god news is that it may not take much (Flamant!) to perk things up a little.

I stand by what I have said in the past about the strength of the portfolio and will consider adding in the future, although I may prefer other stocks as priorities!

All about balance soul, so that is a correct view imo.

Hello there soul.

What I was referring to is not new, we have seen it all now in respct of Chinguetti, Big Al has not got a handle on the story and the reason I cross referred between HNR and GBP is the common denominator, Woodside.

It is my best guess, that they have drilled in the less optimal positions on the northern flank of Chinguetti, allowing sand and water to enter the wells thereby damaging them and reducing output.

They have not understood the geology of the field in my opinion.

Did they drill deep enough?

Did they understand the target?

Can they put it right?

Unfortunately, only time will tell as they will not get to all of the intervention wells till the end on 2007. They are performing one drill this year.

In the meantime, we as holders have the high probability that reseves could be downgraded by anything up to 50%.

Revenue is 50% down, but we know all this anyway, and you buying in now, and me with my 61 pence avarage do not really worry too much about all that as it is definietly all in the price at the moment.

The Oz market is much more fickle than here, because if Flamant fails to find anything useful, what do you imagine they will do with the Hardman sp?

There will be another big hit on the sp, which we will know only too well will take a while to recover.

The question is as always, to prepare for that evenuality do we buy at the discounted levels and average down, or let it be and shut our eyes for a while?

I probably won't avarage down should that event occur.

If Flamant comes in, the story will be very different and my negative thoughts will not apply.

Thanks SWW - I guess we'd better hope that Flamant comes good, otherwise HNR is going to look like a very long-term holding! My current stake isn't going to make or break me, though, so there'll be no tears.

No nor mine soul.

NOP went up 11p today after doing very little for a while - that's enough of a good finish to the week for me. Wish you a good weekend!

Results out today from HNR. Lots of detail, too much to post.

http://www.theaustralian.news.com.au/story/0,20867,20297298-643,00.html

"Hardman hopes for Uganda oil
Nigel Wilson
August 30, 2006
HARDMAN Resources believes it may have found up to 300 million barrels of oil in Uganda but is estimating that recoverable reserves may be as low as 30 million barrels.

Chief executive Simon Potter gave the estimate yesterday when reporting that the company's profit had jumped to $22.9 million from $6.1 million in 2004-05.

The result included a one-off tax credit of $14.5 million.

Reflecting the effect since February of the start-up of the $US708 million ($928 million) Chinguetti oil development off Mauritania in which Hardman has around 19 per cent, the company's sales were reported at $74.5 million compared with nil a year earlier.

Mr Potter, answering questions on below-forecast production from the Woodside-operated Chinguetti field, said that with a net return to Hardman of $US56 a barrel, it was still a good investment for the company.

The Hardman boss said successful testing of the Mputa and Waraga wells in Uganda confirmed excellent reservoir quality and potentially commercial flow rates.

"Oil in place from discoveries so far in the three wells we have drilled near Lake Albert are estimated at between 100 million barrels and 300 million barrels," he said.

Mr Potter added that the company had so far explored only around 6 per cent of its licence area in Uganda.


http://www.smh.com.au/news/business/hardman-trifecta-means-ugandas-the-go/2006/08/29/1156816897980.html

Hardman trifecta means Uganda's the go
Email Print Normal font Large font Jamie Freed
August 30, 2006

ALTHOUGH Hardman Resources insists its share of the troubled Mauritanian oil joint venture remains a "core asset", the company has indicated it will spend an increasing amount of its exploration dollars in Uganda.

Hardman reported a first-half profit of $22.9 million yesterday, up from a half-year loss of $6.1 million last year.

"A year ago we had no production. We had oil in just one country. We'd never operated an international exploration program before," Hardman managing director Simon Potter said. "We are announcing a strong profit, a robust balance sheet and the fact we are fully funded for all our obligations in the coming years."

Hardman last week said the amount of recoverable reserves at its Chinguetti project, operated by Woodside Petroleum, would probably be halved when a revised estimate was released.

The Chinguetti field was expected to produce about 60,000 to 70,000 barrels of oil a day but has instead stabilised at rates of about 35,000 barrels a day.

"It is clear there are no quick solutions, that considerable additional capital expenditure and technological application will be needed, and that a downward adjustment to the recoverable reserves of the field is inevitable," Mr Potter said.

In light of the decreased production, and therefore cash flow, from Chinguetti, Hardman has cut its annual exploration budget by $US15 million to $US65 million.

The company said it would spend more money in its tenements in Uganda than previously expected because it had hit oil in all three wells drilled there so far.

"Uganda is a priority," chief financial officer Peter Thomas said, adding that Mauritania remained attractive because oil prices had more than doubled since the original investment in Chinguetti was approved.

Hardman would like to prove up more than 350 million barrels of reserves to give it the ability to export its oil production but thinks that even with as little as 30 million barrels it might be able to commercialise the oil by selling it locally.

Apart from Mauritania, Hardman is the operator of nearly all of its joint ventures. Mr Potter said Hardman preferred to be in that position in order to control a project's pace and destiny.

Hardman shares closed 0.5c lower at $1.445 yesterday.


Geosul

I have just listened to a recording of the Analysts Conference available from here:

http://www.hdr.com.au/investors_announcements.asp?contentID=476

Some interesting points:

30m recoverables estimate is very conservative. There is considerable upside. Nzizi which is updid of M'puta has the potential to double this figure to 60m barrels.

QuoteAre we in Uganda to recover 30m barrels? No! Plan is to fully explore the whole license which ultimately will have us drilling under the lake. In the meantime, to the extent that we can start generating cash and make our operations cash neutral is both a priority to us and the Ugandan government.

What about Tullow? The agreed strategy with Tullow is to participate as far downstream as generates value upstream

Recent discussions with Ugandan Gov't shows their appetite to be available with both expertise and facilities in order to have power [generation] and electrification lines available to us

The Mini Refinery would be a simple topping unit that allows us to extract Diesel and Kerosene. Much of the diesel would be used in our own rigs and for our own power generation

Apparently a lot of Ugandan electricity is generated from Hydro and there is a chronic power shortage in Western Uganda.

Question Do we move product in terms of crude oil to Kampala [for power generation] or do we move product in terms of electricity? And the preference in discussion with the Ugandans is to move the electricity

So initial plans would involve us supplying electricity from a plant in the Kaiso-Tonyo area although we don't have plans for ownership of these facilities

In terms of scale they are talking about a 50MW Power Station + Topping Plant of commensurate size which would require appox 15m barrels of recoverables and consume about 4000bopd. As its all modular all of this can easily be scaled up to meet additional demand.

Well worth a listen.

xxnjr

Huntley Broker Report

"Event
Last Update - 29/08/2006
Adjusted 1H06 profit of $22.9m was a considerable improvement on the $22.1m pcp loss but less than half of our expectation. Most of the difference was in non cash items including substantially higher depreciation due to Chinguetti underperformance, higher exploration write-offs and higher tax. There was however a realised $5.1m charge for HDR's share of Chinguetti production being overlifted by 56,000 barrels. A timing issue, this charge will be reversed in 2H06. Headline NPAT of $22.9m was almost four times the 1H05 result. On a pre-tax basis it includes a $4.2m write back of realised losses on cancelled oil call options, instead being recognised as the options were originally due to mature. This was partially offset by a $1.8m loss on asset sales.

February start up of Chinguetti saw 1H06 output at 0.98mmbls, considerably lower than expected due to poor field performance. Sales volumes of 0.86mmbls generated A$74.5m of revenue on an average realised price of US$63.9/bbl, a US$5-6/bbl discount reflecting new crude status and production uncertainty.


Business Impact: We retain our Buy recommendation on HDR - excluding risk averse investors. Attractions are the share price discount to NPV, strong balance sheet, single digit forward earnings multiples and strong exploration program. Detractions include increased development risk, potential for market sin binning due to Chinguetti underperformance and very real sovereign risk. Our production forecasts are unchanged but we downgrade our FY06 and FY07 earnings forecasts 32% and 10% to 11.4cps and 21.4cps respectively. This follows heavy increases in expected depreciation rates and exploration write-offs for Chinguetti. Our A$1.95ps valuation is retained and assumes a long term US$60/bbl oil price, A$/US$ exchange rate of 0.76 and a 15% discount rate for Mauritania sovereign risk. Using the current US$75/bbl spot price increases our valuation 23% to A$2.40ps.

Forecast Impact: --

Recommendation Impact: Unchanged. (Last updated: 29/08/2006

Event Analysis

--
At the end of the period, HDR had 176,000bbls of oil on the floating production storage & offload (FPSO) vessel at Chinguetti. Up to half could be sold down by end 2H06 boosting revenue by around $15m. Net cash at the end of 1H06 was relatively steady at $143m after a US$113m (A$148m) equity raising in April.


Mauritanian remediation
HDR says while the original Chinguetti estimate of 380mmbls of oil in place is not materially changed, the ten production wells in the initial development plan are unlikely to recover significantly more than half the original 123mmbl reserve estimate. Infill drilling is expected to begin in 4Q06 to increase field deliverability from current 33-35kbopd rates, half the original guidance. Evaluation of the Tevet discovery as tie-back to Chinguetti is also being fast tracked. Good news at Tiof sees reserves now provisionally estimated at 50-60mmbls, a 10-20mmbl increase on the previous estimate due to the planned extended reach of wells from the central facility, with subsequent phases to access additional reserves.

HDR will spend $65m on exploration and appraisal this year and next. The remainder of the 2006 Mauritanian exploration program targets gas potential in Block 8 with HDR's 18% Flamant-1 now drilling a potential 5TCF (790mmboe) target. The WPL operated shallow water Cretaceous Kibaro-1 follows targeting 130mmbls of oil. In Uganda, testing of the Mputa and Waraga prospects confirms excellent reservoir quality and potentially commercial flow rates. Oil in place is estimated at 100-300mbls with an initial recoverable estimate of 30mmbls excluding near term upside. HDR says the greatest potential has yet to be tested beneath Lake Albert.


The 2007 campaign is to include 8-10 exploration wells covering Mauritania, Uganda, Tanzania, Guyane in addition to up to 15 wells in Suriname. HDR's frontier and deepwater Atlantic margin areas are of a nature to deliver substantial discoveries. We currently value HDR's overall exploration potential at around $300m or A$0.42ps. There is room for upside!"

Sounds moderatley encouraging, all in all.

I'm surprised that Hardman hasn't talked about possible methods of recovering a greater proportion of the oil in place. Could not water injection or similar be used?

soul, yes it could.

This is at a very early stage, and exploration is the driver here first.

Assessment comes next,, as they say they have exp[lored on 6% of their licence so far.

The fast tracking required by the Government will not allow them to do things in the natural order, I think and at their leisure.

Uganda has one heck of a bill for importing energy, and early produiction of oil for electricity will be of more benefit to them than discovery of oil in place. Obviously Hardman Tullow would sell at a discount to the Government, but if the electricity is more or less on site, there will be one to give them as there will not be any transport costs.

Also 1000 miles of cable will be tons cheaper than a pipeline to Mombasa

Things can change very quickly especially if Kingfisher comes in moderate to big, if at all?

Potters conservatism is well founded having been stufed by the Australian Press before over Tiof.

The sp is holding well at the moment bearing in mind the price of oil shifting downwards.

Good points, SWW. Am grateful for your clarification as I have misplaced my thinking-cap today! Elec production ought to be good news all round as it enables HNR to extend the supply-chain vertically and drive profits

By the same logic it would be good if HNR can find gas in Uganda, but I take it that the prospect is basically oily? No problem, as long as HNR have a handle on saleable product and clearly a ready market, it should be money in the bank.

Drilling update out today; Flamant-1 back on track.


RE: MAURITANIA DRILLING UPDATE
PAGES: 1
Hardman Resources Limited (Hardman) provides the following update on its exploration drilling
operations:
MAURITANIA: EXPLORATION DRILLING UPDATE - FLAMANT-1 (BLOCK 8)
Since the last report on the Flamant-1 exploration well, repairs have been made to the Blow Out
Preventer (BOP) and it has been re-run to the seabed. As at midnight on 4 September 2006, drilling of
Flamant-1 to the next planned casing point at 2,110 metres had recommenced with the well having
reached a depth of 1,880 metres.
Flamant-1 targets Cretaceous Carbonates and has a planned total depth 3,370m. The well is located in
1,414m of water, approximately 210km from the shore and 195 km North-West from Pelican-1, a
Cretaceous gas discovery drilled in Block 7.
Equities in Block 8 are:
Block 8
Dana Petroleum (Operator) 41.5%
Hardman Resources Ltd 18.0%
Roc Oil Company 2.0%
Wintershall 25%
Gaz de France 13.5%
Times and dates for Mauritania wells refer to GMT (Mauritania time), 8 hours behind Western Standard
Time, Perth.
Peter Thomas
Chief Financial Officer

You are doing a great job over here (as opposed to 'over there' at a8v8n where I reside most days), I have a largish holding in HNR, which has cost me a small fortune (if I sell!) so far. :(

Flamant? Who knows, but if they do find hydrocarbons there, then they talk of 1bln barrels equivilent I think. Fingers X'd as someone says above, but even then I shall stay put without that being a success.

That's how I feel. :)

We dont say much here Rayrac because we are the only 3(?) investors left in the whole world!

What we really need is georgetrio buying a few as he seems to have a Midas touch about him

I have 10,000 shares in the company I bought mine at 58.44p on22nd of august, they a dropped since my purchase. I am staying put for the time being. All it takes is some good new and finds.

janet - welcome and thank you for highlighting your presence.

That's a good price in the long term, and if they happen to hasve a bid approach as well, there is quite a bit of discount in it too.

FID on Tiuof will do it and news of Tevet tie back would help.

KIngfisher coming in foir Hertiage in Uganda too, plus I see Tullow have just bought adjoining licenses in the DRC(Congo), so they must think it's worth it.

So now we have 4 investors here.

Hi-make me number 5! I have been lurking on these boards for nearly 2 years and have dipped in and out of HNR

why should any predator want to buy Hardman?

LOL

You cynic, you!

Such a laugh.

well it's true! .... i have seen others voice likewise for other minnows, more in hope i reckon, than in judgement .... just because the big boys are stuffed with cash, it does not mean they have to chuck it at companies with very questionable assets.

Did I say that cynic? (companies stuffed with cash etc......)

No I didn,t.

Frankley I dont think Hardman will be taken out at all, and have said as much elsewhere.

Except........

Tullow has 80pence attriubted to their so for the same assets as Hardman in Uganda.

Now look at the Hrdman price and tell me what you think.

Morning all. I seem to have started something with this "Band of Five" - LOL.

Obviously I'm a tad miffed that the SP has dropped off further rather than recovering from around 60p as I had been hoping it would.

It's a pity about the overall oil price sinking - however, given that HNR have hedged most of their Chinguetti production at around $64 per barrel (if memoy serves), they are protected to some extent.

I share SWW's optimism regarding Tiof and Tevet - there is a lot of potential in the various tie-backs to the Chinguetti platform (Berge Helene FPSO) and I should think that success with these should provide some motivation for the SP.

All IMO, PDYOR.

This will be all right long term, and the long bit may not be too far away imo.

KBC Peel Hunt on Oils

Decent post, SWW, thanks.

sp now looks interesting and worth a play. Company looks as though profits now on the up and sp going other way! Mmmmmm any price under 50p a share and I'll be in also as of tomorrow.

Hardman Resources Ld - Mauritania Drilling Report
RNS Number:1413J
Hardman Resources Limited
19 September 2006


STOCK EXCHANGE / MEDIA RELEASE
RELEASE DATE: 19 September 2006

AUSTRALIAN CONTACT: Simon Potter
Hardman Resources Ltd
+61 8 9261 7600

LONDON CONTACT: Patrick Handley
Brunswick Group (UK media relations)
+44 207 404 5959


RE: MAURITANIA DRILLING UPDATE


PAGES: 1


Hardman Resources Limited ('Hardman') provides the following update on its
exploration drilling operations:

Mauritania: Exploration Drilling Update - Flamant-1 (Block 8)

Since the company's last report on 12 September 2006, the Atwood Hunter has
drilled the Flamant-1 exploration well to a depth of 3,299 meters. Current
operations are preparing for wireline logging.

Flamant-1 is located in 1,414m of water approximately 210km from the shore and
195 km North-West from the Pelican-1 gas discovery in Block 7.

On completion of Flamant-1, the Atwood Hunter will drill the Aigrette-1 well in
Block 7.


Equities in Block 8 are:
Block 8
Dana Petroleum (Operator) 41.5%
Hardman Resources Ltd 18.0%
Roc Oil Company 2.0%
Wintershall 25%
Gaz de France 13.5%

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

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.



SIMON POTTER
CEO & Managing Director

2 to 3 days then.

Fine by me!

BTW, seen SOLA? Taking off nicely, it would appear.

A nice tick-up this afternoon, on turnover of more than 1.1 million shares.

HNR Bid: 50.5p Offer: 52p Change: 2.75

Makes a nice change :o)

Announcements
A$1.47 Billion Recommended Offer for Hardman Resources from Tullow (25 Sep 2006)

Hardman today announced that it has entered into an agreement with Tullow Oil Plc for the proposed acquisition by Tullow for all of the shares in Hardman.

Sold out of Hardman a few weeks back as although I consider them a good company with great prospects the SP has been frustrating. As a holder in Tullow I am well pleased and the price being paid appears cheap considering where it was a couple of months back and where it could have gone to. The Tullow Management have obviously been reading your post's ST.

It is cheap and there are a loyt of losers out of this for Hardman, but I have to say I am not one of them and am happy to take the shares.

Well done soul.

Not a jibe cynic, you asked a good question.

Now you have the answer.

cynic - 10 Sep 2006 10:15 - 67 of 82
why should any predator want to buy Hardman?
seawallwalker - 10 Sep 2006 14:37 - 68 of 82
LOL

You cynic, you!

Such a laugh.

it will be interesting to see what value that will put on our shares. I paid 58.44p for my shares. I hold 10,000 shares. This is very good news. The share price should rise nicely. Andy do you know what this offer values our shares at? Good luck to all holders.

Janet I think I read 79p

no offense ever taken Seagoon ...... indeed Hardman has been taken out, and jolly good luck to all holders, whether in at the cheap or the expensive end ..... Nevertheless, i will repeat what i wrote somewhere some time back ..... just because the big oilies are stuffed full of cash, does not mean that all and every minnow with just a sniff of assets becomes a target .... yes, a (very) few will be gobbled up, but picking the right one is akin to spotting the winner at the Grand National, or even choosing Foinavon to pull it off.

cynic, just to tidy upom here, yes I agree with you entirely.

I have sold my 10,000 at 76.95 pence. I decided to take my profit. I am happy with this. take care all.

Can anyone advise wether it would be better to take the cash offer or the Tullow shares?

"Hardman Resources - Agreed bid from Tullow HOLD

Tullow has secured the recommendation from the board of Hardman for a cash bid at A$2.02 (79.79p) per share.... a reasonable premium for the Ugandan discoveries and ...full value for the Mauritania assets (...in ...light of the downgrades on Chinguetti). ...possibility of a higher ... bid cannot be ruled out. However, ...Tullow knows more about the Uganda assets than anyone else ...and ...the Hardman board is now bound not to talk to potential competing bidders...Hardman having raised 60m at 98p per share back in April this year, this capitulation really does not cover the board with glory.

This is an excellent opportunity for Tullow to broaden its production interests and development portfolio and to deepen its position in the more promising parts of the Ugandan exploration play on which early success points to potential resources of several hundred million barrels...

we remind readers that our Core NAV estimate for Hardman is 60p and risked exploration value is 34p. Assuming the shares move straight to the bid price, we believe there is little to be gained from gambling on a higher bid but it is certainly worth holding on to see what may happen.

Tony.Alves@kbcpeelhunt.com

For what it's worth, I say good bye to Hardman Resources who have been very good to me over the last 3 years having bought and sold in peaks and troughs.

This last period has been sticky as it went the wrong way for a while but I have been sorted out by Tullow's bid and I walk away with 17 per share.

Pointless waiting in my case, I'll have the money and look to buy in cheaper at Tullow, maybe maybe not.

Good luck all.

Well, that was a nice surprise as I logged in just now - the Tullow offer price puts me on a profit of about 27% which ain't bad for a couple of month's patience!

I'm still making up my mind whether to take cash (so I can have either another chunk of SOLA or a pop at Ariana Res) or opt to receive the TLW shares.

if speculative, then probably take the money and pick up some more SOLA (don't know Ariana), for though Tullow is a top notch company, oilies are not really the place to be at the moment

Cynic, I'm inlcined to agree that I want to reduce my (considerable) exposure to oils (for reasons of not wanting to get those exposed bits badly burned :o) )

Ariana (AAU) is a teeny-weeny gold exploration outfit finding huge amounts of gold in trench samples in Turkey. They have just begun a proper drilling campaign which is due to report in late Nov. In mkt cap terms it appears undervalued compared to its peers, yet its chances of success seem to be better. I could see it doing what Patagonia Gold (PGD) did when it announced finding "bonanza grades" at Huemules a year or two ago. My gut says go for it, as I have wanted to for about a month now; am just having a quick squint at the figures.

I have done the deed; HNR out, AAU in. And a smile on my face :o)

soul -a bird in the hand is worth two in the bush.

Tullow is dropping off, which I expected, and this will continuee for a while so forget the exchange for shares and take a bite of what you fancy, when you want it, not when they say you can have it.

You may get a bigger mouth full.

The view I take is that TLW will be there for a while - and since I see the likelihood of a threebagger even in the farily near term for AAU, I know where I want to put my money right now. Cynic is right about the iffy oil situation, although a cursory glance at TLW indicates that they have decent prospects and I'll certainly give the company fuller consideration in due course.

As for mouthfuls - AAU is cream cake and I feel a trip to the bakery coming on :o)

Flamant yet another duster.

How lucky are we?

Unbelievable - I'm afraid that that news would not have gone down well with me had I still been holding! Big sense of relief . . . . :o)

Seawall, have you seen Forum Energy (FEP)? Looks like it's doing a VOG!

Yes I have seen it thanks soul.

All this and only on 3d of what the company already knew, unless I missed something

Might be worth shorting soon if only I did that sort of thing.

Hi SWW, I've seen your comments on the thread now. FWIW I seriously wouldn't short FEP at these levels. The issue here is that there has been both confirmation (of a kind) and that the company's profile has been raised. I guess most of the papers will be covering the story tomorrow, so I could envisage a lot more people piling in on this one.

I'd wait for bad news before trying to go short.

All IMO, I don't short sell anyway so am not an expert!

soul - it escapes me why this assets had no effect on Sterling when they had it?

Not that it matter too much I suppose, and I see what you mean about raising the profile.

Yes it is looking like there are more legs to it, but I also recall that VOG did a double and then the bubble burst although I did not follow why.

Dint get me wrong, I am pleased that punters have had some cash out of FEP, it so often goes the other way.

Anyway, it's one for me to follow just to see what happens even if I don't buy.

Well done, I wish I had seen it this morning,but my mind was elsewhere as usual.

http://www.advfn.com/p.php?pid=nmona&article=17071357

"Substantial Shareholding

RNS Number:8481J
Hardman Resources Limited
03 October 2006

STOCK EXCHANGE / MEDIA RELEASE

RELEASE DATE: 3 October 2006

AUSTRALIAN CONTACT: Richard O'Shannassy
Hardman Resources Ltd
+61 8 9261 7600

LONDON CONTACT: Patrick Handley
Brunswick Group
+44 207 404 5959

RE: NOTICE OF SUBSTANTIAL SHAREHOLDING


Hardman Resources Ltd was notified on 29 September 2006 that Newton Investment
Management Limited hold 39,428,236 ordinary shares in the Company, representing
5.43%.

Huntleys Broker Nore(no link, posteed by aka hooter on HC.(Thanks H)

"Event Last Update - 02/11/2006

HDRs share of 3Q06 Chinguetti production fell 26% to 458kbbls close to expectations. Sales volumes fell 34% to 563kbbls. Two oil liftings substantially reversed HDRs underlifted position. Only around 15kbbls remain outstanding. The average price achieved fell 6% to US$60.30/bbl. The ~US$10 discount to spot reflects uncertain Chinguetti production levels and new crude status. A lengthy unplanned shutdown in late August and early September impacted output. Reservoir delivery was otherwise fairly stable and facility availability high.

Barring the possibility of Tullow Oil withdrawing its A$2.02ps cash offer for HDR, the fundamentals take a back seat to the corporate maneuverings. The bid strengthened share price remains within our Hold zone. We feel the likelihood of a counter bid is somewhat reduced since our last report. The bid was already set at a substantial premium to the pre-offer price, HDRs board is on side, an A$14.7m break fee is payable and the Flamant gas prospect proved dry. If other bidders are there, they may wait for the explanatory memorandum and independent experts report due in mid November before moving. Candidates include Woodside, British Gas, Dana Petroleum and any number of other international oil and gas companies yet to gain a foothold in Mauritania. Shareholders will vote on the merger scheme of arrangement in December.


Business Impact: Our $1.95ps valuation and earnings forecasts are intact. Long term assumptions remain a US$60/bbl oil price, A$/US$ exchange rate of 0.76 and a 15% discount rate for Mauritania sovereign risk. HDRs underlying attractions remain the strong balance sheet, single digit forward earnings multiples and strong exploration potential. Negatives include development risk, potential for ongoing Chinguetti underperformance and sovereign risk.

Forecast Impact: --

Recommendation Impact: Unchanged. (Last updated: 02/11/2006

Event Analysis

Quarterly Production 2Q06 3Q06 % Chg
Gross Production (mmbls) 728 542 -25.6
Entitlements Share (mmbls) 622 458 -26.4
Sales Volume (mmbls) 856 563 -34.2

Sales Revenue (A$m) 73.9 44.2 -40.2
Realised Price (US$/bbl) 63.9 60.3 -5.6

Net Cash (A$m) 136 139 +2.2

--
HDR said measures to improve Chinguetti field underperformance are progressing. The first infill well Chinguetti-18 will drill from late 2006 to increase field deliverability. It targets a currently undrilled segment of the reservoir. A production increment of around 10,000bopd gross or 0.7mmbls annually net to HDR is expected. There appears to be little evidence of support from water injection to the reservoir. A review of the estimated recoverable reserves is ongoing and results are anticipated by year end. Expect a substantial downgrade. Tiof development concept definition studies continue. Expect some delay and potential cost inflation Project sanction remains scheduled for mid 2007.

HDR is spending $65m on exploration and appraisal this year and next.

The 16.2% Aigrette-1 exploration well is drilling in the Dana Petroleum operated Block 7. It is 43km along trend from Pelican-1 gas discovery and has 0.7tcf (115mmboe) potential. The 21.6% Kibaro-1 (130mmbls) will follow Chinguetti-18. Drilling in 2007 and 2008 is to focus on prospects within tie back distance of Chinguetti and Tiof. Patudo is a 40mmbbl prospect 6km west of Chinguetti and Batrachus, a 35mmbbl prospect, is 15km SW of Tiof. This follows a lackluster exploration run on larger targets and seems a sensible lower risk move, reducing capital cost requirements.

Uganda Upside Beckons
A successful production test of the onshore Mputa-1 yielded a sustained 810bopd confirming reservoir quality and potentially commercial, albeit fairly modest, flow rates. Initial estimates are for 100-300mmbls of oil in place and recoverable volumes at Mputa-Waraga of 30mmbls. A study has begun on an early production concept that could supply a local power station and mini-refinery. The Nzizi well is to spud in November to test the up-dip potential of the Mputa structure. It represents near term upside. The main targets however remain the larger prospects under Lake Albert. HDR is looking to accelerate exploration and appraisal of discoveries made

For old times sake I wilkl keepo this upodated till they disappear.

I no longer hold as I put th cash elsewhere..

http://www.hdr.com.au/documents/news/00514_ASX%2016%20Nov%20-%20Nzizi%20Drilling%20Update%20and%20Chinguetti%20Reserves.pdf

"Exploration Area 2: Nzizi-1
Since the last report on the Nzizi-1 well, logging operations have been completed and pressure
measurements taken.
Good oil shows were encountered during drilling over a gross interval of approximately 180
metres, directly above basement, in a similar section to that encountered by the Mputa-1 well, 6
kilometres northeast of Nzizi-1.
Wireline logs and pressure measurements indicate an interbedded sequence of oil bearing
sands and shales. No fluid samples or testing operations were planned for this well as it was
drilled in a slimhole configuration and consequently it will now be plugged and abandoned.

The vote was around 90% in favour.

Bye bye Hardman Resources.

http://imagesignal.comsec.com.au/asxdata/20061218/pdf/00679287.pdf

Top riser today.

This one keeps on rising.

Wished I had bought in July.