COMPLETION OF 4,800KM 2D SEISMIC PROGRAMME IN SOUTH FALKLANDS BASIN PAGES: 2 Hardman Resources holds a 22.5% interest in seven offshore production licences covering approximately 33,700 square kilometres to the south and east of the Falkland Islands in a joint venture with Falklands Oil and Gas Limited (FOGL), a company listed on AIM. FOGL, the operator of the Falkland Island joint venture, has advised that it has completed the current 4,847 kilometres 2D seismic data acquisition programme over the joint venture licence areas. The initial interpretation of the preliminary processed data from the survey has proved encouraging. These initial results show a much larger and more diverse prospect inventory than originally anticipated and have identified numerous new leads, with indications that some could potentially be commercially significant in size. A full evaluation of these leads, supplemented by further investigations, will be necessary before technically sound and economically viable drillable prospects can be defined. Given the positive results of the survey and signs of potential hydrocarbons, the joint venture is considering plans to increase the scope of its exploration programme in order to develop a number of drillable prospects by mid-2006. Full details of the exploration programme are still to be finalised by the joint venture but, given the increased number of identified leads, Hardman expects the scope of the exploration programme to increase significantly. The operator is targeting drilling of the first well in 2007. Simon Potter, Managing Director / CEO of Hardman, commented: “The results of the 2D seismic are very encouraging. Initial interpretation of the new data gives considerable cause for optimism. There is a wide range of play types with several different styles identified. The number of leads identified has exceeded our estimates and we believe it has greatly enhanced the licence area’s value. It is Hardman’s goal to identify and define prospects in the immediate future so that they can be considered for drilling in 2007. It is clear that the scope of work needed to maximise the potential of our acreage has to be increased significantly. Hardman’s share of funding for such an expanded programme will be sourced from cash at hand.”
HDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
