Hardman Resources Ltd has entered into a term sales contract for its crude oil production entitlement from the Chinguetti field offshore Mauritania, West Africa with Vitol S.A., a major oil trading company. This contract covers the initial marketing period for Chinguetti crude oil through to 31 December 2006 and prices will be related to dated Brent. First production from Chinguetti is currently anticipated to commence in February 2006.
Chinguetti crude oil is anticipated to be within typical West African quality range, acceptable to a broad range of refiners.
The Company has also entered into a pooling arrangement with the Government of Mauritania, its national oil company, Société Mauritanienne des Hydrocarbures (“SMH”), and affiliates of BG plc and Premier Oil plc who are participants in the Chinguetti Joint Venture to lift cargoes jointly from the FPSO (Berge Helene). This arrangement will provide more frequent liftings of entitlements and therefore more regular cash flow than could be achieved if the Company lifted its crude oil separately from other sellers.
