perth basin, page-5

NORTHERN PERTH BASIN, WESTERN AUSTRALIA

Dear Sir/Madam
Hardman Resources Ltd provides the following progress report on its drilling activities in the northern Perth Basin, Western Australia. Update on the testing of the Jingemia 1 well Well Location: Within permit EP413, approximately 5 kilometres west of Hovea Oil Field.
EP413 covers most of the prospective onshore basin area between Hardman’s 75% owned Woodada Gas Field and the Dongara Oil and Gas Field in the
Northern Perth Basin.

Progress: (up to 06:30 hours 24/12/02)
Production Testing of Jingemia 1 commenced on 11 December and as at 0630 hours WST today the well was shutin for long-term buildup. During the 10-day well flow period a total of approximately 18,500 barrels of oil was produced at an average rate of 1,850 barrels of oil per day. No water and a small amount of associated gas were produced during the test. The well
production rate was constrained at times to maximise the amount of information obtained from the test however maximum flow rates of up to 2,050 barrels of oil per day were recorded through a 1 inch choke.

Forward Programme:
The down hole gauges will be retrieved in mid January and the flow test and build up data analysed. Following this, approval will be sought for an initial 3 month extended production well test. Once approved it is expected that oil production from the well test will commence on or about 1 February 2003.

Participants in EP 413 and Jingemia 1 are as follows:
Origin Energy Developments Pty Limited 49.189% *
Hardman Oil and Gas Pty Ltd 22.376%
AWE (Perth Basin) Pty Ltd 15.245%
Victoria Petroleum NL 5.7685%
Voyager Energy Limited 5.7685%
Pancontinental Oil & Gas NL 1.278%
Alan Robert Burns 0.233%
John Kevin Geary 0.142%
* a wholly owned subsidiary of Origin Energy Limited (Operator)


Twin Lions No1 well

The Ensco 53 jack-up rig left Singapore on 15 December 2002. The rig is expected to arrive at
the location of the first well during the first week of January 2003. It will drill at least three and possibly as many as eight, wells in WA-286-P and TP/15 during early 2003. The Twin Lions well in TP/15 is expected to be the second well drilled in the programme and will be the first exploration test in the TP/15 permit. Participants in TP/15 and Twin Lions 1 are as follows:
Hardman Oil and Gas Pty Ltd 30.00% *
AWE (Perth Basin) Pty Ltd 25.00%
Roc Oil (WA) Pty Limited* 20.00% **
Norwest Energy NL 10.00% *
Arc Energy NL 5.00%
Bounty Oil & Gas NL 5.00%
Voyager Energy Limited 5.00%
* Hardman has a 10% free carried interest in this well under a farmin agreement with Norwest
Energy NL.
** a wholly owned subsidiary of Roc Oil Company Limited (Operator)
Hardman’s Managing Director, Mr Ted Ellyard, commented:
“We are encouraged by the high sustained rate of oil production from Jingemia 1 during the test which establishes this well as a new field oil discovery in the Perth Basin. The commercial significance of this oil accumulation will now be established by the extended production testing programme in February.
Hardman looks forward to the commencement in mid-January of drilling in the offshore TP/15 exploration permit adjacent to EP 413. Twin Lions 1 will be Hardman’s first well in 2003. The Company expects to drill up to four wells in its Perth Basin permits over the next four months, making this area an increasingly significant part of Hardman’s worldwide asset portfolio.”

Yours Sincerely
HARDMAN RESOURCES LTD
SCOTT SPENCER
DIRECTOR