RNS Number:4204R
Hardman Resources Limited
29 October 2003

HARDMAN RESOURCES LTD
Ground Floor, 5 Ord Street, West Perth
PO Box 869, West Perth
Western Australia 6872
Tel: +61 8 9321 6881 Fax: +61 8 9321 2375
ABN 98 009 210 235



STOCK EXCHANGE / MEDIA RELEASE


RELEASE DATE:              29 October 2003


CONTACT:                   Ted Ellyard (08 9321 6881)


RE:                        OPEN BRIEFING - CHINGUETTI PRODUCTION



Enclosed is an Open Briefing with Managing Director Ted Ellyard, which has been
prepared by Corporate File for immediate release.




SCOTT SPENCER
DIRECTOR



                           Lodgement of Open Briefing




Hardman Resources Ltd
Ground Floor
5 Ord Street
West Perth  WA  6005


Date of lodgement:   29-Oct-2003

      Title:   Open Briefing. Hardman. MD on Chinguetti Production Update


Record of interview:


corporatefile.com.au

Hardman Resources Limited last week announced that the Chinguetti 4-5 appraisal
and early development well was flowing oil at a steady rate of 12,500 bopd.  You
had previously estimated that when the Chinguetti Oil Field is fully developed,
it could initially produce around 75,000 bopd for the first one to two years.
How does the recent production test rate affect this estimate?


MD Ted Ellyard

The preliminary Development Plan for Chinguetti envisaged six production wells,
to achieve the initial peak field production rate of 75,000 bopd.  This would
require each well to produce at 12,500 bopd.  However, the current well being
tested is a vertical well which intersected only a part of the reservoir section
and production is limited by the surface test facilities.  Some of the
production wells to be drilled in 2004 will be directionally drilled (inclined)
and designed to intersect a greater proportion of the reservoir sands and
therefore should be able to produce at even higher rates.  Two years after
start-up, more production wells may be drilled to maintain the overall rate.


corporatefile.com.au

The most recent estimates for the capital development of Chinguetti are around
US$400 million, with Hardman's share around US$86 million.  Can you describe the
likely development option?


MD Ted Ellyard

To achieve first oil production by end 2005, the Chinguetti Development Plan
includes the leasing of a Floating Production Storage and Off-take Vessel ("FPSO
") for an 8 to 10 year period, the drilling of six production wells (possibly
more), a gas injection well and water injection wells.  The US$400 million
capital cost is the initial estimate to achieve first oil production and this
number will now be more closely defined as the Development Plan is finalised
later this year.


corporatefile.com.au

What has the production test indicated about oil quality and reservoir pressures
and quality?


MD Ted Ellyard

We knew a lot about the oil quality of the field from the oil sampled in the
previous three wells and this long term flow rate confirms that the oil is a
high quality crude with an API of about 30, which is typical of high quality
West African oils. Information on the reservoir pressures will be obtained at
the end of the main flow period of the test. This data will be invaluable in
determining the long term production forecast for the field.


corporatefile.com.au

You have previously encountered sand inflow when production testing the original
Chinguetti discovery.  How well have you been able to control sand inflow this
time?


MD Ted Ellyard

Sand inflow during testing or production is a common problem in the highly
porous sand reservoirs typical of deep water fields and this problem was
encountered when we tested the Chinguetti 4-2 well in 2002. In the current
Chinguetti 4-5 well we undertook a specialised completion technique of using
sand screens and "frac and pack" where sized sand particles were injected around
the production zone to prevent the movement of the porous reservoir sand into
the well. The high production flow rates achieved in the well (where minimal
sand was produced with the oil) attest to the success of the completion
technique used and has justified the reason for drilling this early development
well.


corporatefile.com.au

You have previously said that project finance would not be finalised until the
results of the production test are known.  Can you update us on progress with
the loan facilities and how the banks are likely to view the recent production
tests?


MD Ted Ellyard

Now that we have successfully produced the well at high production rates I am
confident that the field will get the go ahead for development. We need to
complete the production test and analyse all the reservoir pressure information.
This data will be provided to the independent US based consultants engaged by
the ANZ bank (on behalf of Hardman) so that they can complete their due
diligence report on the field development and certify the reserves. This work
should be completed in December 2003 and then the banks (working with Hardman)
will complete the loan financing arrangements which we would hope to finalise by
February 2004 ahead of the final investment decision (FID) in March 2004.


corporatefile.com.au

So can you please summarise the milestone schedule to first production and also
the remaining exploration program this year?


MD Ted Ellyard

The Chinguetti Field development should proceed on the following basis:

1.      Analyse test data, etc to finalise the Chinguetti Development Plan,
commence tendering process for facilities (FPSO etc) and complete due diligence
for banks by end December 2003.  We also hope to have joint venture agreement
for the Declaration of Commerciality at this time.

2.      Complete tendering and negotiation process and loan financing
arrangements (for Hardman) ahead of FID in March 2004.

3.      Drilling and completing production wells, installing subsea equipment,
etc in late 2004 and 2005 and then commissioning the FPSO around mid-2005 for
first oil production in 2005 or early 2006.


In terms of the exploration drilling programme, on 28 October we commenced the
drilling of the first of two wells in the Woodside operated PSC Area B licence
(Hardman 21.6%). This first well is on the Tiof Prospect which is a Miocene aged
sand prospect associated with a salt structure and is similar in type and size
to the Chinguetti discovery. The second well is in the Poune Prospect, which is
a test of a deeper Upper Cretaceous structure, however this well will also test
a shallower Miocene sand channel target.


We are still hoping to drill a third exploration well on the Pelican prospect in
the Dana Petroleum operated PSC Block 7 (Hardman 18%) but this may depend on
whether everything can be organised in time for this well to be included in the
current rig schedule to drill the well in November 2003.


corporatefile.com.au

Earlier this year, Hardman completed an Extended Production Test (EPT) at
Jingemia (onshore North Perth Basin, Hardman 22.4%) which flowed at rates of
between 1,000 to 1,900 bopd over a three month test period.  You now plan a
second EPT to commence in the near future.  Can you please summarise what you
know about Jingemia in terms of the structure of the field, the potential size
and production rates and development timetable?


MD Ted Ellyard

In September/ October we drilled the Jingemia-2 and -3 wells which defined the
southern limits of the field and we are now completing Jingemia-3 as a water
injection well as originally planned. This well will provide pressure support to
the current Jingemia-1 oil production well and also future production wells. The
recent drilling results supported the earlier interpretation that the Jingemia
Field contains about 5 million barrels recoverable on a P(50) basis, although
there is still some uncertainty due to the limited seismic data.


The second Extended Production Test is expected to commence in the next few
weeks following approval from the government authorities and will run for 3
months. We expect to produce oil from Jingemia-1 at about 2,000 bopd now that we
have pressure support from Jingemia-3. The second EPT will provide information
on the pressure communication across the field reservoir between wells and
provide information to optimise the field development (for example, the number
of production wells required).


At the conclusion of this EPT the joint venture will review the data and
finalise the field Development Plan. Current thinking is to drill another
production well (Jingemia-4) possibly as a horizontally completed well in 2004.


corporatefile.com.au

What company-wide oil and gas reserves do you now believe Hardman has?


MD Ted Ellyard

Based on our own internal estimates of the two established discoveries in
Mauritania and our Australian fields I believe Hardman has net reserves
approaching 60 million barrels recoverable on a 2P basis (i.e. proven plus
probable reserves). For the Chinguetti Field our internal mean reserve  estimate
is 142 million recoverable and on the basis of only one well at Banda about 100
million barrels of oil (excluding the large gas reserve). Our net interest of
21.6% and 24.3% respectively results in a net reserve of over 50 million barrels
to Hardman.


Our two fields in the North Perth Basin, Woodada Gas Field and the Jingemia
Field only provide about 2.5 million barrels of oil equivalent net to Hardman
but we can also now add the 4 to 6 million barrels from the 100% owned Talbot
Oil Field in the Timor Sea, although we have yet to demonstrate the
commerciality of this recent acquisition. I should stress that these reserve
estimates are Hardman's internal reserves, although calculated on a conservative
probabilistic basis, but they have not been certified at this stage by an
independent consultant.


corporatefile.com.au

Thank you Ted.
--------------------------------------------------------------------------------

For previous Open Briefings by Hardman Resources, visit www.corporatefile.com.au



For further information on Hardman Resources, visit www.hdr.com.au


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