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.

Decisions, decisions. PANR is looking interesting at the moment, on a quick scan of recent news.

Decision made - got in with a small holding 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. 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 Bid: 59p Offer: 61.5p Change: 1.25

Very diciplined soul.

A small holding can be just as satisfying as a big one, especially if it flies.

No reason to suspect this won't at some point. As you said, it has a lot going for it , that is all discounted from the current sp imo.

Good fortune.

Thanks Seawall. I'm having to be discplined because I'm not as liquid as I'd like to be right now - in an ideal world I'd have 100k to spend upon shares and would seriously think about trickling 10 or 20 of it into HNR. In default of 100k I shall just attempt to be opportunistic.

Looking forward to the next few weeks' drilling results. Thanks once again for all your feedback.

ST.

Thanks soul, just seen the new thread, I now consider this one closed.