re: qtrly report egoli comment Hardman books 40% fall in Q3 sales
26/10/2006 By: Alex King
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Hardman Resources Limited (HDR) has recorded a 40% decline in sales revenue for the third quarter to $44.2 million following lower oil production and lower realized oil prices. The company’s net oil production for the third quarter fell 26% from the previous quarter to 458,152 barrels.
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Managing director, Simon Potter, said gross production at the Chinguetti well in Mauritania averaged 30,999 barrels of oil per day.
“Operationally, production at Chinguetti has remained relatively stable through the third quarter, and progress has been made in implementing measures to improve field performance,” Mr Potter reported.
The company said that it had reached joint venture approval for an infill well to commence drilling in late 2006 to increase field deliverability.
“The near term production outlook is for continued periods of stability with slow natural decline in rates over a longer period, augmented by an initial increment of around 10,000 bopd (gross) to be expected from the first new production well early in 2007,” Mr Potter said.
The company reported that the successful production test of Mputa-1 well in Uganda has confirmed an excellent reservoir quality and potentially commercial flow rates.
In the limited portion of the block explored to date, Hardman said it has already established oil in place of 100 to 300 mmbbls, and potential recoverable volumes in the order of 30 mmbbls.
“In Uganda we are looking to drive the pace of appraising upside in our discoveries following the successful Mputa test results as well as accelerating further exploration and evaluating early production options,” Mr Potter said.
Commenting on the $1.47 billion friendly takeover from the UK’s Tullow Oil PLC, Mr Potter said he expects the completion of the deal around the end of the year.
At 1400 AEST, Hardman was up 1c to $2.06.
HDR
hardman resources limited
