hdr answers to hc members

QUESTIONS FROM HOTCOPPER MEMBERS TO HARDMAN RESOURCES

GENERAL
1.Will there be any further Capital raisings in the next 12 months given HDR exploration funding commitments and likely cash flow reductions from Chinguetti .

ANSWER: NO PRESENT CAPITAL RAISING PLANS

2.What is the current status of Merrill Lynch as a substantial shareholder.

ANSWER: JUST BELOW 9%

3.When is Simon Potter going to do an Open Briefing.

ANSWER: POSSIBLY SOON. AS AND WHEN THEY HAVE SOMETHING NEW TO SAY NOT ALREADY COVERED IN THE HALF YEARLY ETC.

4.What is the situation regards the $18M court action HDR took against WPL.

ANSWER: STILL PROCEEDING.

UGANDA
1.When do HDR intend to start drilling again in Uganda?

ANSWER: NIZI IS NEXT WELL, BEFORE END OF 2006

2.Will HDR truck out the oil from Uganda or are they waiting on building either a refinery or pipeline.

ANSWER: STILL TO EARLY TO TELL. SEE COMMENTS IN HALF YEARLY

3.What is the range of Mputa/Nzizi recoverable reserves should Nzizi be a positive result?

ANSWER: A POSITIVE RESULT COULD SEE RESERVES DOUBLE. HOWEVER WE MUST ALSO CONSIDER THE POSSIBILITY OF A NEGATIVE DRILL

4.HDR’s announcement stated 100 to 300 mmbls in place and the recoverable were quoted at 30mmbls.
a.Did the 30mmbls refer to the 100mmbls giving a net to gross of 30% or
b.Did it refer to the 300mmbls giving a net to gross of 10%?
c.If (a), could the recoverable range have been quoted as between 30 to 90 mmbls? Which would match Simon Potters statements at the AGM that there were around 30mmbls recoverable in both Mputa and Waraga or have the recent flow tests provided information that have downgraded HDR’s assessment of recoverable oil?

ANSWER: THE 30 MMBBLS IS A P50 FIGURE AND WAS CALCULATED USING A CONSERVATIVE PROBALISTIC ASSUMPTION BASED ON THE MONTE CARLO SCALE. HDR DON’T WANT TO ADD ANYTHING MORE AT THIS STAGE UNTIL THEY HAVE DRILLED NIZI.

GUIANA
Could you comment on http://72.14.235.104/search?q=cache:j05xLdUQn_YJ:www.peak-group.com/cms/component/option,com_docman/catid,/Itemid,0/task,docclick/bid,11/+Two+deepwater+wells+are+being+drilled+in+Mauritania+for+Dana+using+the+Atwood+Hunter+semi-submersible+rig,+while+a+deepwater+well+in+French+Guiana+is+planned+for+Hardman+Resources.&hl=en&gl=au&ct=clnk&cd=1

CONTENT
"The Peak Group .... well in French Guiana is planned for Hardman Resources"
Two deepwater wells are being drilled in Mauritania for Dana using the Atwood Hunter semi-submersible rig, while a deepwater well in French Guiana is planned for Hardman Resources.

ANSWER: HDR HAVE ASKED PEAK RE THE OPPORTUNITY OF ASSISTING WITH DRILLING. HOWEVER NO CONTRACTS HAVE BEEN SIGNED


MAURITANIA

1.Page 8 of the investor presentation show no Mauritania drilling earmarked from beginning 2007 to August 2007?
a.Why is this?
b.Is the Attwood Hunter still under contract to the Joint venture during this time? If so, has there been any discussion by the JV about releasing or hiring out the AH during that period or part of it?

ANSWER: ATTWOOD HUNTER IS OUT OF MAURITANIA DURING THE ABOVE TIME PERIOD AND NOT CONTRACTED TO HDR

2. What is the status of booking a suitably equipped vessel for 4D/high res seismic?
a.Is it proving difficult to get a vessel for this work?
b.Will this vital work be completed in time to part fix Chinguetti by late next year

ANSWER: WPL ARE THE OPERATOR AND ARE RESPONSIBLE FOR CHARTERING SUITABLE VESSEL.

3.What are the JV and/or HDR’s current assessment for Chinguetti forward flow rates until late 2007 allowing for current assumptions for natural decline and (likelihood) there will be only one remediation well before then?

ANSWER: NO FURTHER COMMENTS OTHER THAN WHAT WAS DISCLOSED AT HALF YEARLY.