hdr has so far explored only around 6 per cent of

Hardman hopes for Uganda oil
Nigel Wilson
August 30, 2006
HARDMAN Resources believes it may have found up to 300 million barrels of oil in Uganda but is estimating that recoverable reserves may be as low as 30 million barrels.
Chief executive Simon Potter gave the estimate yesterday when reporting that the company's profit had jumped to $22.9 million from $6.1 million in 2004-05.

The result included a one-off tax credit of $14.5 million.

Reflecting the effect since February of the start-up of the $US708 million ($928 million) Chinguetti oil development off Mauritania in which Hardman has around 19 per cent, the company's sales were reported at $74.5 million compared with nil a year earlier.

Mr Potter, answering questions on below-forecast production from the Woodside-operated Chinguetti field, said that with a net return to Hardman of $US56 a barrel, it was still a good investment for the company.

The Hardman boss said successful testing of the Mputa and Waraga wells in Uganda confirmed excellent reservoir quality and potentially commercial flow rates.

"Oil in place from discoveries so far in the three wells we have drilled near Lake Albert are estimated at between 100 million barrels and 300 million barrels," he said.

Mr Potter added that the company had so far explored only around 6 per cent of its licence area in Uganda.