Following the grant of the extension, FAR intends, subject to...

Following the grant of the extension, FAR intends, subject to approval by Petrosen (Senegal’s National Oil Company), to increase its working interest to 90 percent and assume Operatorship of the three offshore blocks.
Written offers to participate in the drilling of a well have been received from two large international exploration and production companies, with a third offer, from a major, pending.

Once FAR has Operatorship a farmin agreement similar to Hardman’s agreement could be achieved in the 3 offshore blocks …….

Release date 29/04/1999 HDR Share Price .04 cents

Hardman has held a majority interest in a large offshore Production Sharing Contract ('PSC') over Blocks 3, 4 and 5 in the Senegal - Mauritania Coastal Basin since late 1996. This licence has now been divided into Joint Venture Areas A and B, under the terms of a Farmin Agreement with Woodside Mauritania Pty Ltd ('Woodside') and British-Borneo International Limited ('British-Borneo') which was signed on 6 August 1998. During the quarter, two new PSCs, over Blocks 2 and 6 were approved and signed by the Minister of Mines and Industry. The new PSCs referred to as Joint Venture Area C, are subject to similar Farmin Agreements with Woodside and British-Borneo. The total area of licences held by Hardman in the Woodside and British-Borneo Joint Venture is now approximately 39,200 square kilometres.
Under the terms of the Farmin Agreements for Areas A, B and C, Woodside and British- Borneo are required to fund 100% of the initial exploration programme of technical studies and 8,500 kilometres of new seismic acquisition. Within a period of eighteen months from the granting of the PSC licences, Woodside and British-Borneo must commit to the drilling of an offshore well in each of the three Joint Venture areas or withdraw from the venture. In the case of Area A, the drilling commitment date is December 1999.
At the completion of the drilling of three (3) offshore wells (estimated to cost about US$15 million each well) and at no cost to the Company, Hardman will retain interests in Joint Venture Areas A, B and C of 24.3%, 21.6% and 22.5% respectively.
The Woodside seismic survey was completed on 14 January 1999 and processing of the data is now almost complete. A total of 10,359 kilometres of 2D seismic was acquired over the combined area of Blocks 2, 3, 4, 5 and 6 (approximately 22% more than the farmin requirement). This data will be interpreted in Woodside's Perth office with assistance provided by Mauritanian technical personnel who will be working in Perth during the next quarter. Numerous prospects have already been identified and the new seismic will allow selection of drilling locations in each of the three Joint Venture areas.