We continue to see potential for future value add from...

We continue to see potential for future value add from exploration in the
Mauritania Salt Basin, offshore West Africa. To date, 10 exploration wells have
been drilled by the Woodside joint venture chasing Miocene channel sand
targets in the deep water Mauritania Salt Basin. This has delivered a highly
respectable 40% exploration success rate with commercial oil discoveries made
at Chinguetti (125 mmbbls), Tevet (50 – 100 mmbls) and Tiof (300+ mmbbls).
In addition, Banda (50 mmbbls and 1 – 3 TCF) represents a large gas-oil
discovery, possibly dependant on the co-development of its gas reserves for
future commercialisation. The Chinguetti oil field starts production 1Q 2006.
Hardman expects to participate in 6 – 8 new Mauritania Salt Basin exploration
wells from July 2005. The first three wells are: Sotto, and Colin in PSC area A,
and Espadon in PSC area B. Petrel / Faucon is to be drilled in Block 1.
Sotto (WPL 54%, HDR 24% and ROC 4%) is a test of a new Miocene
channel sand system that has a strong seismic amplitude response in the primary
target Tertiary sand section. Sotto is interpreted to have potential for 100 – 200
mmbbls of recoverable oil, and is considered high risk - high reward.
Colin (WPL 54%, HDR 24% and ROC 4%) represents a new exploration
target (lead 116), located south of Sotto along the eastern margin of the
Mauritania Salt Basin in a similar setting to the Banda gas / oil discovery. Colin
is a large prospect with upside potentially in excess of an estimated 250 mmbbls
potential. Colin is moderate to high risk, but high reward.
Espadon (WPL 53.9%, HDR 24.3%, ROC 3.7%) is an exploration prospect
located north west of Tiof oil field with potential for tie-back to the future Tiof
oil development. Woodside interprets Espadon as a medium risk, moderate
reward prospect. We estimate upside at around 100 mmbbls.
Petrel (HDR 18%) is a 100 – 250 mmbbl target in Block 1 with amplitude
velocity offset (AVO) anomalies that possibly support hydrocarbon charge.
Our preliminary analysis of these exploration prospects indicates potential HDR
upside of an estimated A$1.97/share (unrisked) and A$0.47/share (risked).