net buyer 7million +, page-41

rrs next hdr Remember when Hardman Resources first looked at Mauritania, their was civil war at the time and their stock was 2c at the time (now $1.90 and same amount of shares as RRS).

Then the big boys came in to help expend the exploration programme, its happening all again (second wind coming).

Puntland has the largest stretching coast in East Africa and is the nearest to the Middle East oil and gas producers.

It is well documented that Puntland Territory could be bigger than the Yemen Oil field both on and offshore, which Yemen produces over 250,000 barrels that we know of today!

We are not just talking about a one block or exploration oil and gas licences, but the whole entire state!

From HDR website: http://www.hdr.com.au/

Mauritania is located on the northern Atlantic coast of West Africa between Morocco and Senegal. The country is largely arid and has a population of about 2.7 million. Mauritania gained independence from France in 1960. The country presently has no oil and gas production, although it is one of the few countries in West Africa with refining capacity.
Hardman has interests in Production Sharing Contracts ("PSCs") in eight offshore blocks in Mauritania (i.e. diagram showing summary of holdings), with the first PSC being signed in 1996. These blocks cover approximately 65,000 square kilometers, extend along 540 kilometers of coastline and include the majority of the prospective basin area, offshore Mauritania.
Two joint venture groups were established by Hardman. Blocks 2, 3, 4, 5 and 6 which cover the central, deep water salt basin were divided into Areas A, B and C under the terms of Farmin Agreements with Woodside Mauritania Pty Ltd ("Woodside") and ENI-Agip ("Agip"), signed in 1998. Hardman also holds three PSCs over Blocks 1, 7 and 8 which straddle the Woodside joint venture areas. These PSCs are in joint venture with Dana Petroleum plc ("Dana"), an oil production company listed on the London Stock Exchange.
Woodside Joint Venture Areas
Since 1998, Woodside has shot two large seismic surveys over the Joint Venture areas at a cost exceeding A$50 million, including a total of 3,580 square kilometres of 3D seismic acquired during 2000. Initial exploration interest was focussed in the deep water portion of Blocks 3, 4 and 5 (Areas A and B) where mature source rocks, turbidite sand reservoirs and salt dome anticlines were identified from the 2D seismic data. In addition a small 3D seismic survey was acquired in Block 6. All of this work was undertaken as part of Woodside and Agip's farmin obligations. The drilling of the Chinguetti-1 and Courbine-1 wells by Woodside and Agip during 2001 completed the farmin obligations for Joint Venture Areas A and B with Hardman retaining an interest of 24.3% and 21.6% respectively.
In December 2003 the Joint Venture Partners announced that they had entered into an agreement to purchase a pro-rata entitlement share of Agip Mauritania BV's 35% interest in PSC Areas A and B, offshore Mauritania which contained the three discoveries made by the Woodside operated consortium to date. This was as a result of the non-Agip joint venture partners pre-empting a proposed sale of the Agip stake to a major international oil Company. Agip Mauritania BV had previously reached agreement to sell its interest to a third party prior to the successful Chinguetti 4-5 early development well and the Tiof oil discovery. The acquisition price paid by Hardman was approximately US$33 million.
Following the conclusion of this agreement in early February 2004, Hardman Resources announced it would sell its ENI-Agip acquired interests in offshore Mauritania to BG UK Holdings Limited, a subsidiary of BG Group PLC. The purchase price payable by BG to Hardman was US$132 million. In addition, BG assumed the ongoing pro-rata liability payment to ENI on approximately US$5.1 million, payable once future success milestones are achieved. Hardman retained its prior equity levels of 24.3% in PSC Area A and 21.6% in PSC Area B.
The joint venture participants in these licences located in the central portion of the Mauritanian deep water basin are:
Participant PSC A PSC B PSC C2
Woodside 53.846% 53.846% 48.00%
Hardman Resources 24.3% 21.6% 28.8%
Fusion Mauritania A 4.615% - -
Premier Group Companies - 9.231% -
ROC Oil Company 4.155% 3.693% 3.2%
BG UK Holdings 13.084% 11.630% -
Energy Africa - - 20.00%
Dana Joint Venture Blocks 1, 7 and 8
The Dana Joint Venture comprises three PSC areas which are situated immediately to the north and south of the Woodside/Agip acreage. Under the terms of the Joint Venture, Dana Petroleum plc ("Dana") is operator, while Hardman has an 18% interest in all blocks.

• Block 1: A number of prospects have been identified from the 3D seismic acquired in late 2002. It is expected that the joint venture will agree to drill the first exploration well as part of the 2004 drilling campaign, however due to rig availability the well may not be drilled until early 2005.
• Block 7 and the Pelican-1 Gas Discovery: In December 2003, the Pelican-1 exploration well was drilled using the drillship "Jack Ryan" which had remained in Mauritanian waters after completing production testing of the Chinguetti 4-5 well. The Pelican-1 well was drilled to a total depth of 3,825 metres in 1,700 metres water depth. Evaluation of the wireline logs and pressure data indicated that the Pelican-1 well intersected a gross gas column of approximately 370 metres and within the gross interval a number of gas bearing sands are present. The gas bearing sands are interpreted to be Upper Cretaceous in age and are therefore older and geologically distinct, compared to the Miocene aged sandstone systems that host the Chingeutti, Tiof and Banda discoveries located approximately 150 kilometres to the south.
• Block 8: This block is geographically different from the other offshore Mauritania blocks and the most prospective area is a carbonate platform with seismically mapped large structural closures. A request for a twelve month extension of the Block 8 PSC has been approved by the Government. This extension will allow the acquisition of a large 3D seismic programme over the identified carbonate leads, which will commence in the next quarter. Dana has recently announced that it has farmed out a 38.5% interest to Wintershall AG.