Hardman Resources Limited through its wholly-owned subsidiary Hardman Petroleum Africa Pty Ltd, operator of the Block 2 Joint Venture, announced that the Government of Uganda, Hardman and its co-venturer Tullow Oil plc, have signed a Memorandum of Understanding (“MOU”) relating to future investment plans and licence obligations for Block 2.
The MOU includes commitments by both the Joint Venture and the Government to advance appraisal and development activities to realise the full potential of the existing Block 2 discoveries and provide time for the continuing active exploration of the remainder of the block.
The next well in the 2006 exploration programme is Nzizi-1, an up dip appraisal well to the south west of the Mputa discovery which is anticipated to spud by early November. The Joint Venture will alsoundertake further 3D and 2D seismic surveys to define the volumes of the existing discoveries better, develop infill locations, as well as to explore the northern area of the block to identify prospects for drilling in 2007 and 2008. In addition, the Joint Venture will continue to evaluate the most effective manner to drill offshore prospects in Lake Albert by the end of 2007.
In parallel with these exploration and appraisal activities, the Joint Venture and Government have also agreed to review the early development potential of hydrocarbons already discovered by commencing concept studies for an Early Production System (EPS). This will determine the commercial and technical feasibility for early production. Any such development could initially comprise production and processingfacilities to fuel a local power station (of around 50MW capacity) and potentially also supplying a minirefinery.
Joint Venture Equities in Block 2 are:
Hardman Petroleum Africa Pty Ltd (Operator) 50%
Tullow Oil plc 50%
