Another press article (I dont believe has been posted yet) found at www.iii.co.uk in Fusion(FOG) discussion board.
DATE: August 20, 2002
Company Analysis Hedging Strategy
Hardman Resources Part of Aussie Consortium Involved In Major Discovery Offshore Mauritania.
In Australia it is being described as the well everyone has been waiting for. Chinguetti 4-2 offshore Mauritania involves four Australian in the consortiumas well as Eni the Italian major. One of the Australians, Woodside Petroleum for which Shell made an abortive bid last year, is certainly no tiddler but even for it the Chinguetti prospect represents a big step up in exploration at an international level. So the impact on the smaller partners could be pretty hefty.
If an Aussie small cap finds oil or gas in one of Australia’s mature Basins, you are usually talking about reserves of 10 million barrels of oil, if you are lucky, or 25 billion cubic feet of gas.Last year offshore Mauritania the Chinguetti –1 discovery well found reserves which Hardman Resources estimated at 100 million barrels. Pre-drilling estimates by Woodside the operator had put possible reserves at 180 million barrels in place for Chinguetti and 220 million barrels at another well Courbine-1. The latter turned out to be non-commercial, which is the way things go in edxploration, but the 100 million barrels of oil estimate by Hardman for Chinguetti-1 now looks conservative.
West Africa is the most exciting under -explored and under- exploited oil province in the world with the possible exception of Russia. That’s why there was great interest in this year’s drilling season. Nigeria alone could have 100 billion barrels which is not far short of Saudi Arabia and this says nothing of the 8 or so countries where oil companies have only recently started looking
Hardman, Fusion Oil & Gas Woodside and Roc Oil have all now all announced the results of Chinguetti 4-2 well; and it is exciting. Hardman says: “We are pleased to advise that preliminary evaluation of wireline log data has confirmed the presence of significant oil bearing sands in the Chinguetti 4-2 well, after the well reached total depth of 2,655 metres. A decision has been made to production test the well.
Preliminary evaluation of the wireline log data indicates that the well has intersected several oil-bearing sandstones in the primary objective over a gross hydrocarbon interval in the well of 94 metres. A shallower zone contains gas-bearing sandstones over a 3-metre interval. Further wells will follow, in particular Chinguetti 3, which will be an appraisal well. This current well report is an important development and both Fusion and Hardman, which are quoted on AIM in London, are expected to raise funds in London to proceed further.
Hardman has 21.6 per cent of Production Sharing Contract (PSC) in Area B where Chinguetti is located, Fusion Oil & Gas 6 per cent, Roc Oil ( Mauritania )2.4 per cent, Eni Agip British Borneo 35 per cent and Woodside Mauritania , which is the operator, 35 per cent..
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
