From pages 56 to 62 for those interested.Cheers,xmagxHardman...

From pages 56 to 62 for those interested.

Cheers,
xmagx

Hardman Resources

Outlook

Following the unexpected decline of Chinguetti production, output has now been stabilised at a maintainable level. Additional wells will be drilled during 4Q06 to increase the deliverable oil rate. The oil from Chinguetti provides very high margins to HDR. Even with the reduced production levels, at current oil prices, Chinguetti is capable of repaying HDR's investment in less than two years from first oil.

HDR has a strong net cash position and is now cash flow positive. This provides the company with a great deal of flexibility in relation to furthering exploration and appraisal work. The oil discoveries in Uganda are exciting prospects and HDR is right to be advancing them as rapidly as possible. HDR is already considering strategies for commercial development of the reserves.

The dry well at Colin-1 during 1H05 was a disappointment, but there are other targets offshore Mauritania. Two large prospects are to be drilled in 2H06. The first Flamant is under way, but has encountered some stormy weather conditions. This has resulted in some mechanical difficulties and repair work; drilling is expected to recommence shortly. Flamant is targeting 5TCF of gas. The other, Kibaro, will target 130 million barrels of recoverable oil reserves.

New ventures in Tanzania and Suriname provide further geographical diversification and an onshore/offshore balance for the exploration portfolio.

The result was just below our expectations for the first half and we have lowered the target price by 5 cents. However, we still believe that over a 12-month period, HDR provides a good exposure to the energy sector, particularly given its excellent exploration and development prospects in Uganda. We retain our BUY recommendation.

http://www.stgeorge.privatebank.com.au/resources/privatebank/downloads/commentary/30%20August%202006.pdf