Chinguetti Oil Reserves
February 26 2003 - 2:05AM
UK Regulatory
RNS Number:9802H
Hardman Resources Limited
26 February 2003
STOCK EXCHANGE / MEDIA RELEASE
RELEASE DATE: 26 February 2003
CONTACT: Ted Ellyard (08 9321 6881)
RE: OIL RESERVES UPGRADED FOR CHINGUETTI FIELD,
OFFSHORE MAURITANIA
Hardman Resources Ltd is pleased to advise that following detailed technical
evaluation of 3D seismic and well data from the two highly successful Chinguetti
appraisal wells drilled in 2002, it has upgraded its recoverable oil reserve
estimate for the Chinguetti Field. Hardman's recoverable oil estimates for the
Chinguetti Field are:
P(90) estimate 95 million barrels
P(50) estimate 125 million barrels
P(10) estimate 200 million barrels
Statistical Mean estimate of 142 million barrels
(recoverable)
Hardman's technical evaluation is based on a 3D geological model constructed
using "Petrel" software (now being used by Woodside and Shell). The Hardman
reserve estimate differs from a report released by Woodside on 20 February 2003
which listed Chinguetti and Banda reserves as a Scope for Recovery of 100
million barrels and 56 million barrels respectively. However, this is a
considerable upgrade from Woodside's previous estimate for Chinguetti of 65
million barrels in late 2001.
In November 2002, Hardman appointed the ANZ Investment Bank, based in London, as
the Lead Financier to put together the loan facility required for Hardman's
21.6% of the Chinguetti Field development capital. Phase One of their work is
nearing completion and indicates that the planned field development is
financially robust based on economic modelling of the P(90) reserve estimate.
Hardman now intends to engage a US consultancy firm to undertake reserve
certification at Chinguetti to provide further confidence to the investment
banks.
A development team has been working on the Chinguetti project for the past six
months and is aiming to complete a field development plan by April/May 2003.
The Joint Venture will then review and approve this plan to reach a
commerciality decision by mid 2003. The next step would be the issue of tender
documents by September 2003 for the production facilities and other capital
equipment. Work could be expected to start during early 2004 with completion
and first production planned for 2005 or early 2006.
Hardman's Managing Director, Ted Ellyard, commented: "Hardman's reserve
estimate work, which will now be checked by independent experts, has provided
considerable confidence that the Chinguetti Field is sufficiently large to
support a "stand alone" commercial development. In particular, the P(90)
estimate of 95 million barrels which approximates a proven oil reserve estimate
is a good result from the appraisal drilling programme in 2002. The mean
estimate of 142 million barrels recoverable is a considerable upgrade from
Hardman's previous estimate.
We now look forward to completing all of the technical and financial studies
required for final approval of the Chinguetti project and to start work on the
development phase. We also hope that a similar upgrade of reserves at the Banda
discovery, from the current 56 million barrels recoverable oil, will be possible
following the drilling of appraisal wells."
SCOTT SPENCER
DIRECTOR
Note: In accordance with Australian Stock Exchange Limited listing
requirements, the geological information supplied in this report has been based
on information provided by geologists who have had in excess of five years
experience in their field of activity.
This information is provided by RNS
The company news service from the London Stock Exchange
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