By then an early development well will have been spudded, production testing done and a development plan concluded. If things run to plan the field should give up its first oil during 2005 or early 2006, with at least six production wells being drilled to hit a planned extraction rate of 75,000bopd.

Hardman said yesterday that preliminary studies indicated that it would cost about US$400 million to bring Chinguetti on-stream with Hardman's 21.6% share of costs amounting to US$86 million.

The multi-national explorer and producer has already engaged the ANZ Investment Bank to help it seek the US$100 million it needs to fund its project share.

It also has signed a preliminary mandate with the International Finance Corporation, a member of the World Bank Group, to evaluate the project. This arrangement may mean the IFC will provide a financing facility of up to $US25 million.

The key element to the funding hinges on work being carried out now by US-based consulting firm Netherland, Sewell and Associates Inc who in April were given a mandate to certify the field's reserves and validate the development plan. NSAI is expected to complete the Chinguetti field reserve certification in October after results from the early development well come through.

The Chinguetti oil field is a salt dome structure with a vertical relief at the target depth of over 300 metres. The primary oil zone is contained within Miocene-aged deep-water turbidite sandstones which were deposited prior to the salt uplift. The structure is faulted with a downthrown southern flank (Chinguetti-1) and an upthrown northern flank, tested by Chinguetti 4-2.

As the operator of the (75%) Woodada Gas Field Hardman also began site preparation work on the Leafcutter-1 oil exploration well following final government approval for the venture.