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Hardman Provides Uganda Flow Testing Update

Source: www.gulfoilandgas.com 8/15/2006, Location: Africa

On 12 August 2006, oil was successfully flowed to surface from the sands tested from DST #2 in the Mputa-1 exploration well, yielding an average flow rate of 300 barrels of oil per day of 32 API oil through a 32/64 choke, with no water production and low gas to oil ratio.

The sand tested by DST#2 is a relatively thin interval (2 3 metres), which gave an indication of hydrocarbons whilst drilling but did not yield definitive wireline pressure testing results during the original drilling operation. The gravity of the recovered oil is very similar to that seen in the lower zones at the Waraga-1 well 19 kilometres away which is likely to be of similar origin.

Final flow and build-up tests are currently being concluded after which the main oil-saturated sand in the discovery well (965 to 975m interval) will be tested by DST#3. Testing of this final interval is anticipated to commence later this week.

The Mputa-1 well is located 220 kilometres northwest of the Ugandan capital Kampala and onshore 8 kilometres from Lake Albert. The Waraga-1 well is located 19 kilometres to the northeast.

Equities in Block 8 are:
Dana Petroleum (Operator) 41.5%
Hardman Resources Ltd 18.0%


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