"Hardman Resources in placing of 65.9 mln shares at 98p UPDATE
AFX


(gives production details)

LONDON (AFX) - Hardman Resources Limited said it plans a placing of up to 65,918,810 ordinary shares at 98 pence each to finance accelerated appraisal and exploration plans.

The placing represents up to 10 pct of the current issued share capital of the company.

Hardman said that, with the Chinguetti field now in production, further discoveries offshore Mauritania awaiting development, and the recent successes in Uganda, it has successfully built a balanced portfolio of exploration and production assets as a platform for future growth.

The company said it now has a set of attractive investment opportunities and in view of these new investments, the board decided to carry out the fundraising announced today.

In Uganda, the company proposes to make further investment to appraise the

recent play-opening discoveries, Mputa-1 and Waraga-1. Looking ahead, Hardman said it has started planning for drilling large offshore prospects beneath Lake Albert and will also likely acquire additional 2D and 3D seismic data to extend coverage over the onshore oil trend. Hardman said it expects to spend at least 20 mln usd in Uganda over the remainder of this year and next.

In Guyane, some 10 mln usd of the proceeds of the placing is anticipated to provide funding to test the prospectivity of different play types by drilling at least two wells. Drilling is now most likely to commence in 2007, subject to rig availability.

The company said it has also been pursuing a number of attractive new venture opportunities, of which the recently announced ventures in Tanzania and Suriname are the first to be signed-up.

Out of the proceeds of the placing, 25 mln usd is allocated to specific new venture proposals, including further Atlantic Margin exploration new ventures at an advanced stage of negotiation.

Hardman also said it proposes to bid for acreage in the upcoming Trinidad licensing round.

Any left over proceeds from the placing will be allocated to increasing working capital, including support for any new venture commitments, and reducing reliance on the Group's existing project finance facility.

Operating cash flows from Chinguetti are presently strong, notwithstanding that production levels are currently below oil facilities capacity, Hardman said.

The reduction is due principally to lower deliverability from the northern wells. This will not be compensated by over producing from the southern wells, which would likely cause gas and water handling issues, the company said.

Hardman said its cash earnings and net debt and cash forecasts for 2006 will be affected by the actual production for 2006. However, the Hardman board said that current high oil prices, if sustained, should more than offset the reduction in forecast cash earnings for 2006."


The last placing was very slow to clear, so I am not too amused with thus, the consolation is the plans and advanced negotiations they are in.

On a grand scale of things, what's another 65 million shares?

A healthy pick up for any possible predator I suppose.

seawallwalker not at much of a giVerway price,unlike the last placeing.sold out yesterday when they started droping.comeing back later see where the price lands. ps. pVr moVing neVer toped up.

Hello hello, cellby.

No, not really a give away, not too amused really, I would normally have sold at the same level you did and for the same reasons, but decided to hang on because of lots of positive vibes, trouble is those vibes were telling me to sell as well I think.

I had some PVR the other day, looks good.

I may just knock off a few more......... you writing style reminds me of someone else?

wish it reminded me of some else who could spell.

lol

Quick as a flash........


RESULTS OF PLACING OF NEW ORDINARY SHARES

PAGES: 3

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED
STATES, CANADA OR JAPAN

Hardman Resources Limited ('Hardman' or the 'Company') is pleased to announce
that, following this morning's announcement of its proposed placing of new
ordinary shares (the 'Placing'), a total of 65,918,810 new ordinary shares in
the capital of Hardman (the 'Placing Shares') have been placed by JPMorgan
Cazenove Limited and Oriel Securities Limited subject to certain conditions at a
price of 98 pence per Placing Share, a 2 per cent discount to the previous
night's closing price on the London Stock Exchange of 100 pence per ordinary
share. The gross proceeds of the Placing amount to approximately 64.6 million
(A$153.3 million).

It is expected that admission of the Placing Shares to trading on AIM, a market
operated by London Stock Exchange plc, will become effective at 8:00 am (London
time) on 3 May 2006 and that quotation of the Placing Shares on the official
list of the Australian Stock Exchange will become effective at 10:00 am (Sydney
time) on 4 May 2006.

The Placing Shares will, when issued, be credited as fully paid, rank in full
for all future dividends and other distributions declared in respect of the
existing issued ordinary shares of Hardman on or after the date of issue of the
Placing Shares and will otherwise rank pari passu in all respects with the
existing issued ordinary shares of Hardman.

Happy again.

Golly, there are some buys going through.

CWA1 over thye road posted this from the Telegraph

"Share price 98.25p -1.75
Questor says Buy

The news in February that oil has begun to flow in West Africa came as some reassurance to investors in frontier exploration venture Hardman Resources.

The Australian company, joint listed on Aim, has been digging holes in hard-to-find places since 1987 and is now shaking a tin at London investors for $100m (56m), via a placing of 65m new shares at 98p a share, to continue the search. The money will be used to finance exploration in Uganda, Surinam and even further afield like the Falkland Islands.

But it is the Mauritanian deposits that offer the most immediate and meaty returns. Oil from the Chinguetti field, where Hardman has a 22pc stake, is now flowing at 65,000 barrels a day but it arrived too late to provide revenues in the first quarter. Results this week for the three months showed a loss of A$46m (19m).

Current flow from Chinguetti is slightly below forecast but an inflated oil price should more than compensate.

Fortune has favoured the brave souls who got on board at 25p in 2002. Though the shares are being diluted, there should be further upside considering the company is revenue-generating. However, this is one for courageous investors only."

Can't say I feel I am any more a hero than any other E&P investor holding these.

Now If I held some others in this sector, I would have to be raving........

Down overnight in Oz, to $2.29AUS = 94.44 pence mid.

I'll have to see if and how much more this drops to see if I takle on some more again, but I now feel justified in doing what I did, when I did.

I still have a largish holding having sold a third on Thursday.

HC report a Merryl Lynch downgrade, but there is no link, and no substantition to this so take it as it stands for now.

"Merrill Lynch 01-May-06 3 Neutral, Medium Risk - -
The broker has reduced Chinguetti production forecasts, raised capex and raised exploration write-offs. This all conspires to take earnings down 44% in 2006, 23% in 2007 and 9% in 2008. Valuation falls 2% to $2.10."

Bit of a rough ride on the good ship Hardman recently.

Today's news from the Uganda drilling can be read HERE


Further to fall over the summer?

Only if they miss a target in Uganda at Mputa-2, otherwise this trend will reverse rapidly.

Well soul, what a good call you made.

Time for a reversal?

SWW, I seem to have this unfortunate habit of making gloomy predictions that then come even more true than I would have dared to imagine. SEO being a case in point.

I have long suspected that what "HNR" really stands for is "Has No Reserves". :o)

Seriously, I haven't looked at this one for a while now, but I do remember thinking about 12 months back that a valuation of over 900 mil for this company looked way too steep. I'm not sure what price tag is appropriate at present, but given that the market is undervaluing everything in spite of rampaging commodity prices, I'd encourage people to be thorough in their research before making a punt.

The summer isn't yet over and gut feeling tells me that only then will buyers return in great numbers as far as the broad market is concerned. EDIT: the SP reverse may come if current drilling is successful, but the market has been paying little heed to good news of late and it may not bring sustained relief.

If I get some time I may look into HNR again and will of course post any constructive comments.

For those who haven't seen -drilling update out today.

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.

SWW, apparently they tested Waraga successfully, but I can't find an estimate of oil in place. Have you seen anything?

EDIT Waraga-1 flowed at 12,000 bopd on test. That'll do nicely. (50% net to HNR)

SWW, prompted by your question above, I've tried to evaluate HNR's prospects.

I was helped by info from the Report to Shareholders for the Quarter Ended 30 June 2006 Available here

Current Ching production of 37,000 bopd (7,030 net to HNR) and 6,000 from 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. Conservative enough?

HNR also had at least 57 mil of cash at quarter end (this is unclear as one set of figures gives them around 97 mil). EDIT - both figures are correct; 57 mil is the net figure after debt is taken into account.

Take the lower cash figure and you have a co with a justifiable market cap of 464 mil, or 63.8p a share. Current SP is 58 / 61.

Basically the SP dropped earlier in the year due to the uncertainty over Ching's production figures. 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.

I haven't looked into all the prospects yet, but 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.

I'd like to dwell on the prospect a little longer, but at these levels, HNR could well be worth a punt.

Any views?

Note to the above post - I have used what I consider to be a conservative estimate of net profit. HNR's net operating cashflow reported in its quarterly report equates to 75% of turnover, but I find that to be a little bit on the high side for a net profit. Not being familiar with Australian accounting principles, I don't want to overestimate things.

I'd like to think that we could be due some interim results in a few weeks' time. That would certainly help to shed some light on the situation.

soul traders - something that has always been missing here is the quality posts you have added today.

I do hold, averaged at 61p, but no great fortune involved.

Mputa and Waranga are appe=aretly not in the price, there are many buy rec's from Brokers stating this is traading at a discount, othersa say they will not put anything on for Uganda until some forward planning is in place to market the commercialised oil, should that happen.

I'll add a bit more tomorrow.

Hi SWW, thanks for the update! If you have any links to broker recommendations I would be most interested to have a look.

I have been thinking about this stock overnight and while nobody can predict the bottom of the current slump, it seems fair to say that it must be in sight.

We can rely on one or two positive developments in the near future, foremost of which will be up to three additional wells to be drilled at Chinguetti, each adding 10,000 bopd (5,700 net to Hardman).

HNR's share of the action could be worth 24p on the share price (174 mil mkt cap) using my calculation method described above.

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

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 Drilling 3 additional wells, Mauritania. Net 5,700 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 due in 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 Net 22.5% Op: FOGL


This summary does not include a range of seismic prospecst and other potential leads for which dates have not been finalised, many of them in Mauritania.

Comments on errors or admissions are welcome.