Posted by hooter on hotcopper.

From ABN Amro

Starts -

"Stock specifics

Hardman Resources

4Q05: Waiting for a Tiof time

Hardman was the worst-performing stock in our universe in 2005 on the back of a very unsuccessful drilling program in Mauritania . Tiof will dominate 1H06, in our view. We expect an announcement in the second quarter. 2006 exploration looks more promising.
Tiof - will it or won't it?

HDR had expected an announcement on the commerciality of the Tiof project before year-end. The operator (WPL) has postponed this decision until at least 2Q06. This is due to the very complex nature of the reservoir and the difficulty in formulating a development plan to maximise the recoverable reserves. We still forecast and value a multi-staged commercial development eventually culminating in recoverable reserves of 235mmbbl.
2006 exploration - small ones are more juicy

Through 2005, we remained sceptical about the prospectivity of the Cretaceous plays in Mauritania , but Labeidna confirms our view that the Miocene still offers considerable exploration upside from smaller pockets of oil. The shallower water 'Atwood Hunter' has been contracted to conduct the 2006 and 2007 drilling programs in the PSC A and B joint ventures areas. The initial wells in the 2006 program are set to be drilled in PSC A and should include the Kilbaro, Awatt and Colin/Colin Deep prospects. Unlike the 2005 'Stena Tay' program, the prospects in 2006 and 2007 should include more smaller, shallower, Miocene plays which have a much greater probability of success than the wells drilled in 2005. However, this rig is also not available until the second quarter.
Catalysts and valuation - Tiof the key catalyst over next nine months



In the meantime, we expect first production from Chinguetti in February 2006, which would provide the company with its first significant cash flow, and would remove some of the risk associated with the costs over-runs experienced in developing this cornerstone asset. We retain our A$2.10 target price with Tiof remaining central to the share price staying above this level. We also believe that HDR would be an interesting takeover target for a NOC interested more in long-term resource potential than short-term returns. Mauritania is likely to have sufficient gas to contemplate an export project, while the recoverable oil potential of Tiof would be boosted by applying a lower hurdle rate than that commonly used by an IOC such as WPL. PetroChina and ONGC would seem to be the two most likely candidates.
Security ExDate ExPrc Type ConvFac Delta"


I'm dribbling again..........

Production commences February 17th

"Production will begin Feb. 17 at the offshore Chinguetti oil field, located 65 kilometers (40 miles) west of Nouakchott in the Atlantic Ocean, said Aboubakr Ould Marouani, director of the state-run Mauritanian Hydrocarbon Company, which is charged with overseeing oil sales.

Oil will be loaded onto ships and exported beginning in mid-March, Marouani said.

The offshore field is operated by Woodside Energy of Australia.

Mauritanian officials say production is expected average about 75,000 barrels of oil a day for nine years."


ee(tmf)

looking to top up here soon, this price looks cheap in comparison to others in the sector that are running up on no production and dubious results!!

You are right there aimtrader.

Be aware of the dispute between Woodside and The Mauritainian Government, but I don't see that being much of a probelem.

It is under priced imo, it will become a t/o target if the Market does not allow it to be where it should be, and they will be cash rich once the production of oil flows.

Price of oil looks to average more than the $45 used to value the company so if you like it, watch this week and buy under 80p if you can.

I exopect it to advance for sure after the middle of the month.

Look to hold till after this years resultls, till next years if you can be patient lots happening over the next 12 months.

Looking cheap, bidding back in @ 78. Lets see what happens tomorrow.

Well done explosive.

Good price and better than mine, but I think 2p wil not mean much soon.

Still got filled boots of these and other PSC memebers so roll on Monday.

Unless of course Friday evening was not the best time to announce this?

Mauritania's Chinguetti offshore oil field starts pumping oil
AFX


NOUAKCHOTT (AFX) - Mauritania has started pumping crude oil at its Chinguetti offshore oil field in the Atlantic Ocean, making it Africa's newest oil producer, state oil company Societe Mauritanienne des Hydrocarbures (SMH) announced.

'The production of Mauritanian oil effectively started on Friday at the offshore Chinguetti oil field,' 80 kilometres (50 miles) southwest of the capital, SMH said in a statement.

The daily production is expected to reach 75,000 barrels of oil and Mauritania hopes to earn some 200 mln usd a year from exports expected to kick off around March 20.

Hardman Resources Ltd has a 19.01 pct stake in Chinguetti. Australia's Woodside Petroleum Ltd, the operator has 47.83 pct while BG Group has 10.23 pct, Premier Oil 8.12 pct and Australia's Roc Oil 3.25 pct.

The Mauritanian government holds the remaining stake of just under 12 pct.

Very bullish RNS here too.

Hardman Resources Limited
25 February 2006



STOCK EXCHANGE / MEDIA RELEASE


RELEASE DATE: 25 February 2006

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

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

RE: FIRST OIL PRODUCTION FROM
CHINGUETTI FIELD

PAGES: 3


Hardman Resources Limited ('Hardman') is pleased to announce that oil production
from the Chinguetti field (Hardman 19.008%), offshore Mauritania, commenced
during the early hours of the morning on Saturday 25 February 2006.

'This is a profoundly important moment in the history of Hardman Resources',
Simon Potter, Hardman CEO and Managing Director, commented. 'The company is now
not only an explorer but on the verge of being a significant international oil
producer. Clearly, Chinguetti is of crucial importance in underpinning our
business strategy.'

The transition to international oil producer is the culmination of a process
that began in September 1996 when Hardman negotiated and signed the first
offshore Production Sharing Contract ('PSC') with the Mauritanian Government.
Hardman later introduced other companies, including Woodside, through farm in
agreements signed in August 1998 and those companies funded the initial
exploration investment.

Extensive technical work was carried out with the acquisition and interpretation
of a very large volume of new 2D and 3D seismic data. This led to the decision
to drill the Chinguetti prospect as the first exploration well, and where an oil
discovery was subsequently announced in May 2001.

The Chinguetti development project is operated on behalf of the joint venture by
Woodside Mauritania Pty. Ltd and is located in water some 800 metres deep. The
development involved a gross capital expenditure of about US$720 million and
initially comprises twelve wells - six production wells, five wells for water
re-injection and one for gas re-injection. Production is via the floating
production storage and offloading facility (FPSO), Berge Helene - located 80km
south-west of the capital Nouakchott - and is expected to increase steadily over
the coming weeks to reach a peak of about 75,000 barrels a day in April, with
the sale of Hardman's first oil cargo currently also forecast for that month.

Aside from Chinguetti, Hardman participates in further discoveries offshore
Mauritania at Tiof, Banda, Tevet and Labeidna, operated by Woodside, and Pelican
and Faucon operated by Dana. These are currently being evaluated for development
and/or appraisal. In addition to Woodside and Dana, Hardman now has as partners
such major international companies as, BG, Gaz de France, Petronas, Wintershall,
Premier and Tullow, as well as the Mauritanian State. In aggregate, the joint
ventures in which Hardman participates have invested over US$1.4 billion in
exploration and development offshore Mauritania.

'The move to production provides us with the revenues to sustain a growth
strategy embracing not only our Mauritanian holdings but other selected
opportunities in our focus areas,' Mr Potter said. 'Together with my colleagues,
I'd like to thank all those who have gone before me at Hardman who helped create
this substantial opportunity, everyone involved at Woodside in the development
and specifically to congratulate the project team. Achievement of first oil for
a deep water project within 20 months from the development decision is a
substantial accomplishment.'

Alan Burns, Chairman, added: 'Hardman's achievement in opening the Mauritania
basin through primary exploration, through fostering relations with the state of
Mauritania, and by introducing joint venture partners, is a measure of the
resolution of all our employees and colleagues involved - at all stages. We look
forward to sustaining our commitment to the region with further investment, both
in the acreage and locally on-shore, and to working in partnership with
Mauritania and its people.'

Holding a bucket of these.........

Bit of early excitement on the Hardman front, pre open buys at 85 and 86p.

I have no further to comment on these.......

Hung on well at the end.

Lets see what the rest of the week brings.

32 metre column of oil....Uganda.

Uganda: Block 2 - Waraga-1 Wildcat

Since the last report on 28 February, the Waraga-1 well was drilled to a depth
of 1,768 metres. Wireline logs, including wireline pressure and sampling tools,
were run at this depth to investigate hydrocarbons encountered in the well
(elevated gas readings and oil shows). Subsequent evaluation of these logs and
pressure measurements indicates a gross hydrocarbon interval of 32 metres with a
net pay ratio of approximately 50% and the hydrocarbon type is interpreted as
oil. Samples are yet to be recovered from the well because of problems with the
wireline sampling tool. No oil water contact has been observed although the
well has now passed into probable water bearing sands below the hydrocarbon
interval.

Multiple objectives are interpreted in this prospect and, on the basis of
seismic correlations between Waraga-1 and Mputa-1, we still expect to intersect
deeper objectives, similar to the oil bearing intervals in Mputa-1, before
Waraga-1 reaches total depth.

At midnight on 5 March the well was drilling ahead at 1,872 metres towards a
revised planned total depth of approximately 2,050 metres. Wireline logs
including a pressure and sampling programme will be conducted to further
evaluate this reported hydrocarbon interval and the expected deeper objectives.

Waraga-1 is located 19 kilometres to the northeast of the recently drilled
Mputa-1 oil discovery well and 41 kilometres southwest of the Butiaba Waki-1
well (drilled in 1938). Waraga-1 is testing a structural prospect with identical
geological targets to the oil bearing reservoirs seen at Mputa-1. The Waraga
prospect was defined by the 2005 onshore seismic survey and the geological risk
was significantly reduced by the success of Mputa-1.

Hardman's CEO and Managing Director, Simon Potter commented, 'These initial
results, along with the drilling of deeper targets and planned additional
testing of hydrocarbons at Waraga-1 are a strong follow up to the initial
discovery well at Mputa-1. Combined, these results give us considerable
confidence for realising additional potential in the region which will give
strong impetus to an appraisal and commercialisation process'.

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

EUROZ SECURITIES ANNUAL INSTITUTION - PRESENTATION MARCH 2006

Found this link:

http://tinyurl.com/kgcxo

Uganda success at last.

No link on MONEYAM so borrowed from elsewhere till they get some news here.


Uganda: Block 2 - Waraga-1 Wildcat

Since the last report on 7 March, the Waraga-1 well was drilled from 1,872
metres to total depth of 2,010 metres into basement and wireline logs have been
run. At midnight on 12 March wireline pressure testing and sampling programme
had been completed. Oil samples have been recovered from the 32 metre gross
interval previously reported (at a depth of approximately 1,700 metres).
Preliminary indications are that this is a light oil of approximately 40o API
gravity. While no oil water contact was observed, pressure data from the oil
interval and deeper water bearing sands suggests a minimum 45 metre oil column
for this reservoir interval.

Wireline logs and shows while drilling have indicated a deeper, separate zone of
interest from approximately 1,780 metres to 1,930 metres which contains a number
of thinner sands. Oil samples have been recovered from a sand at 1,893 metres.
Pressure testing and sampling has been conducted, with interpretation of results
expected in the coming days to determine the extent of this deeper oil bearing
interval and whether it represents one or a number of oil columns.

The well will now be cased and suspended ready for future testing. Planning of
that testing programme is underway and equipment is being sourced and mobilised.

Waraga-1 is located 19 kilometres to the northeast of the recently drilled
Mputa-1 oil discovery well and 41 kilometres southwest of the Butiaba Waki-1
well (drilled in 1938). Waraga-1 testing a structural prospect with identical
geological targets to the oil bearing reservoirs seen at
Mputa-1. The Waraga prospect was defined by the 2005 onshore seismic survey and
the geological risk was significantly reduced by the success of Mputa-1.

Hardman's CEO and Managing Director, Simon Potter commented, "Two discoveries in
two wells in this region is a great success. That the oil appears to be of good
quality is encouraging and hence casing of both wells (Mputa and Waraga) ahead
of a testing programme. Indeed given this most recent success at Waraga we are
actively planning the future appraisal and commercialisation programme to fully
evaluate the potential of the region."

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 UTC/GMT +3 hours (Uganda time), 5
hours behind Western Standard Time, Perth. All reported depths 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.

Nice one SWW thank you, looks very very good.

March 2006 Brochure Here




Thanks to djalan for this

Aspect Huntly Broker Note.(No link, taken from hotcopper).

Hardman Resources Limited (HDR)

Chinguetti Lays Solid Platform
Recommendation: Buy 17/03/2006



Note: Marker indicates price of $1.98 at publication date.

Investment Rating
HDR's strategy is to secure large prospective acreages in greenfields areas and add value prior to farm-out. The exploration portfolio includes offshore Guyane and Eritrea, onshore Uganda, the Timor Sea and the Falkland Islands. Focus is on the Atlantic Margin Areas in deepwater operations. It is hoped the assets can generate value-add similar to the Mauritanian interests. In JV with Woodside Petroleum, HDR's 19% Chinguetti Field began production in February 2006. Chinguetti could be followed by the Tiof development boosting annual equity production to in excess of 10mmbo from CY09. This would see HDR generating after tax earnings approaching A$500m, assuming a US$60/bbl oil price. HDR is a suitable oil exposure for aggressive, growth oriented investors with a stomach for exploration and tangible sovereign risk.



Result Description
First Chinguetti oil flowed on February 25 with capacity reportedly achieved within a matter of days. HDR's 19% share of 75,000bpd peak production transforms it into a cash-flowed producer, lowering the risk profile considerably. The company says Chinguetti's cash contribution for FY06 is likely to be ~US$140m with a low initial operating cost of US$4.50/bbl. HDR recently entered into oil hedge contracts to satisfy debt financing requirements. Around 2.6mmbls of US$44/bbl put options have been purchased, paid for with 2.5mmbls of US$69/bbl sold calls. The options cover the 27 month period to June 2008 and are equivalent to around one quarter of expected production for the period. Chinguetti lays a solid platform for growth including tie-back candidates Chinguetti phase 2, Tevet, Tevet Deep, and Labeidna. Labeidna-1 has been deemed a sub commercial discovery but CEO Simon Potter believes thicker channel sands are located downdip and adjacent. Labeidna is a candidate for appraisal later in the year.


Impact
Our FY06 and FY07 earnings forecasts are 25.6cps and 27.8cps respectively. These are not so much changes to our previous forecasts, rather they reflect HDR's switch to December year end reporting to synchronise with major joint venturers. The company will report a one-off six month result to December 2005 in the transition period. Our forecast is for a loss of 1.2cps exclusive of any exploration write-offs. Our valuation is $2.65ps. Long term assumptions remain a US$60/bbl oil price, A$/US$ exchange rate of 0.76 and a 15% discount rate to reflect sovereign risk. Within the valuation we add $0.46ps for the worldwide exploration portfolio which includes Banda and other Mauritanian prospects excluding Chinguetti/Tiof.


Recommendation Impact (Last Updated: 17/03/2006)
Unchanged.
Price data based on previous close.
Previous Close Market Cap
$1.96 $1,292 (million)
52 Week High/Low
$2.56 - $1.62
Sector
Energy


Intrinsic Valuation
$2.65


Risk High
Company Beta 0.88
Sector Beta 0.96


Year 2005 2005 2006 2007
NPAT ($m) -10.00 -8.2 169.5 184.1
EPS (c) -1.53 -1.20 25.60 27.80
% Change -83.46 -21.57 -2,233.33 8.59
DPS (c) -- 0.00 0.00 0.00
Franking (%) -- 0 0 0
Dividend Yield (%) 0.00 0.00 0.00 0.00
PER -129.08 -164.58 7.71 7.10

Source: Aspect Huntley analyst estimates

2 Year Price Chart






--------------------------------------------------------------------------------
Event Analysis


Studies continue on HDR's 21.6% owned Tiof field. Modelling has hinted at around 1bn bbls of oil in place but the reservoir is complex with thin channel sands and unproven connectivity. WPL reported a potential recoverable reserve of 289mmbo. A phased development may be the way forward to avoid over commitment of capital given the technical uncertainty. HDR's strong balance sheet also puts it in an excellent position if/when the 21.6-24.3% Banda gas field is progressed. Banda has an indicative 1-4TCF (170-670mmboe) of gas and is another appraisal candidate for later this year.


As covered in our last report, convincing Mauritanian exploration success has eluded the partners since the initial Chinguetti/Tiof/Banda discoveries. At that time, the exploration slate, post initial success, read one from eight wildcats. Since then, 18% owned Faucon-1 in the Dana Petroleum operated Block-1 discovered subcommercial hydrocarbons, and both Zoule-1 PSC-C Block 6 and Dore-1 in PSC-B were dry. One from 11 would you believe! And the u2DCone' is the 50mmbl Tevet discovery, to be tied back to Chinguetti.


Mauritanian exploration will kick off again in 2Q06 initially targeting shallow water prospects in PSC A including Colin/Colin Deep. In total there are eight firm and at least two contingent exploration wells within the US$60-70m budget. Colin is a 150-200mmbl Miocene target. Kibaro is next in PSC A, followed by a well in PSC B, Flamant in Block 8 and a well in Block 7. Flamant and the underlying Flamant Deep prospect are two of a number of large carbonate platform/reef targets in Block 8 differing from the rest of the sandstone hosted offshore Mauritanian basin. Half the world's oil is derived from carbonate hosted fields of which Santos' much vaunted Jeruk discovery is an example. Flamant has potential to contain 5 TCF of gas or 1 billion barrels of recoverable oil. It's high risk but one to watch. Awatt and Bogue are contingent wells. Exploration will be followed by Chinguetti Phase 2 infill late 06/07 or near-field exploration and/or Tiof infill.




Diversification in the Plans


HDR wants to add a second revenue stream outside Mauritania and it could come from Uganda where 50% owned Block 2 covering 1,700sqkm of the northern part of Lake Albert and surrounding onshore. The company's first two operated wells have been deemed discoveries and numerous follow-up prospects exist. Mputa-1 yielded a 10m interval of black, waxy oil although wireline tests are needed to confirm fluid or column heights. Approximately 19km to the north east, Waraga-1 discovered a gross oil column of 32m. The partners are currently logging and sampling this light oil. While not conclusive, drilling results have confirmed a working petroleum system providing encouragement for appraisal and further exploration. Planning is underway to test Mputa and/or Waraga and for further wildcat drilling. Uganda has maintained relative political stability since the early 1980s and the country has been experiencing consistent economic growth. HDR signed its Production Sharing Agreement for Block 2 in October 2001. The area is under explored and prior to recent activities had only one well drilled by Shell in 1938.


Our FY06 and FY07 earnings forecasts are 25.6cps and 27.8cps respectively. These are not so much changes to our previous forecasts, rather they reflect HDR's switch to December year end reporting to synchronise with major joint venturers. The company will report a one-off six month result to December 2005 in the transition period. Our forecast is for a loss of 1.2cps exclusive of any exploration write-offs. Our valuation is $2.65ps. Long term assumptions remain a US$60/bbl oil price, A$/US$ exchange rate of 0.76 and a 15% discount rate to reflect sovereign risk. Within the valuation we add $0.46ps for the worldwide exploration portfolio which includes Banda and other Mauritanian prospects excluding Chinguetti/Tiof. The new Mauritanian Government is headed by a Military Council committed to hand over to an elected civilian government by March 2007. The government is currently disputing the validity of amendment agreements to PSCs. HDR has said its initial estimate of the potential impact over the life of Chinguetti ranges from US$0-20m for its 19% share. We view the dispute as symptomatic of working in the third world environment. Potential investors must factor in the very real sovereign risk.


Expect no dividends for the foreseeable future with the focus on capital appreciation. Funding is in place for committed expenditures - net cash was A$41m at end December. Over 140 prospects have been identified across all eight blocks in Mauritania with more than 40 of these potentially each containing in excess of 100mmbls each. Mauritanian LNG potential is sitting as a sleeper with the Banda and Pelican gas accumulations to be appraised. LNG can be a great long term business builder. The comprehensive exploration/appraisal program from 2Q should hold market interest. WPL's sale of its 10% stake in HDR for $118m opens the register to potential acquirers. We retain our Buy recommendation.

SWW,

Some good information there, thanks.

By Barry FitzGerald
March 20, 2006
Page 1 of 2 | Single page
GARIMPEIRO

Advertisement
AdvertisementTHE Woodside-led joint venture operating in Mauritania's offshore waters is within a week or so of shipping the first cargo of oil from the Chinguetti project. Assuming all goes to plan, the shipment also a first for Mauritania will go a long way to easing investor concerns that the current spat between Woodside and the Mauritanian Government over the details of other offshore contracts of works is just that, a spat that will be resolved once the chest-beating on both sides is out of the way.

Max de Vietri, the Perth-based managing director of Baraka Petroleum, will not be dockside to wish the Greek oil tanker carrying Chinguetti's first oil bon voyage. But he might as well be.

As already well documented, the self-described extrovert with the Bathurst high school rock band pedigree is largely responsible for getting Australians involved in the hunt for oil offshore Mauritania in the first place, introducing Hardman Resources to the play. Hardman later brought in Shell and after it shot through, Woodside.

Fast-forward and de Vietri is now doing his own thing in Mauritania through Baraka, focusing on the Muslim nation's onshore oil and gas potential. The group's market capitalisation of $78 million (27 a

share) tells you there are big expectations for the stock.

Stand by for some peripheral deals to be announced in the weeks ahead covering the sweep of the group's activities in West Africa. But the main event for Baraka remains the drilling of the Heron 1 exploration well in onshore coastal Block 20 in Mauritania.

Assuming no delays from weather it can rain in the desert Heron should be put to the test by the drill bit in August-September.

This is a prospect that Texaco was set to drill until Iraq's 1990 invasion of Kuwait convinced US oil groups they were best off at home for a while.

Baraka and its partner, the mighty Chinese oil outfit CNPC, have a consultant's report that ranks Heron as a 465-million-barrel oil target, with a recoverable potential of 132 million barrels (Baraka's share would be 35 per cent or 46 million barrels).

It is that sort of potential and that is all it is until the drill bit proves otherwise that will make Baraka a stock to watch in the months leading up to Heron 1 being spudded in, let alone drilled to total depth.

Uganda update

"Uganda: Block 2 - Waraga-1 Wildcat

The Waraga-1 well has been cased and suspended at a total depth of 2,010 metres
pending the commencement of a well testing programme. Weekly reporting will
resume once the testing programme is about to commence.

Pressure tests and samples from the lower zone of interest between 1,780 and
1,930 suggest the presence of two oil columns in a number of sands of varying
thickness and quality through a lower net section. Oil samples recovered from an
excellent reservoir sand at 1,893 metres appear to have a similar gravity to the
oil recovered in another, previously reported, shallower zone at approximately
1,700 m. Pressure data suggest that this shallower 32 m gross interval
represents a 45 m light oil column in a better net reservoir sand section.

Testing of this well and the Mputa discovery will provide better information on
the reservoir than is available from the wireline logs and confirm oil
properties. Additional appraisal drilling is being planned to determine the
location of oil water contacts and target potential improved reservoir
intervals.

Waraga-1 is located 19 kilometres to the northeast of the recently drilled
Mputa-1 oil discovery well and 41 kilometres southwest of the Butiaba Waki-1
well (drilled in 1938). Waraga-1 tested a structural prospect with identical
geological targets to the oil bearing reservoirs seen at Mputa-1. The Waraga
prospect was defined by the 2005 onshore seismic survey and the geological risk
was significantly reduced by the success of Mputa-1.

Looks very good to me........