dispute resolved, page-16

Just a reminder of what HDR said on 07/02/2006 about the the dispute


*the initial estimate of the potential impact of the disputed issues over
the life of the Chinguetti field is in the range US$ 0-20 million for
Hardman's 19.008% share. This should be viewed in the context of the
company's substantial Mauritanian asset value.
*The PSC Area B supplementary agreement does not cover the production
sharing percentages for profit oil and cost oil nor the tax rates on
operations.
*The Joint Ventures have considerably exceeded the minimum work
obligations and expenditure commitments for the PSCs.
*The Mauritanian Government has reaffirmed the validity of the PSCs and
also indicated that the extensions to the exploration periods are not
themselves contentious.
*The Mauritanian Government, both directly and through media reports, and
Woodside have both reported to Hardman that the dispute will not be an
impediment to Chinguetti first oil. The Chinguetti project remains on
schedule for first oil in the coming days.