Hardman has 97% equity in the license, which covers some 65,000 sq km, the entire offshore of Guyane (formerly known as French Guiana) to 3000m water depth, according to Potter.
“With our Guyane property we’ve followed the traditional success route that Hardman has taken in the past, which is to have high equity, early access to prospective frontier exploration properties,” he said.
“In hydrocarbon terms it’s sandwiched between the offshore provinces of Trinidad and Venezuela and Brazil, so it’s a good piece of real estate. The offshore prospects are well defined and we can see good structures from the seismic similar to the channel features seen in Mauritania.”
In December, Hardman’s then acting chief executive Scott Spencer told the company's annual general meeting that the company had completed a large 2D seismic survey outlining a giant structure – Matamata – that could hold 2.5 billion barrels of recoverable oil.
The company was talking to potential farm-in partners but it intended to hold on to a bigger stake than it did when Woodside farmed into Chinguetti, Spencer said.
Potter confirmed that Hardman would be retaining greater equity this time around.
“We’ve traditionally dramatically farmed down our share, but in future I would like to see us maintain a higher equity stake (up to 40%),” he told Corporate File.
“We’re now well over a billion dollar company, so can afford to retain higher equity and tolerate greater amounts of risk. As we bring in new partners we will look to swap assets rather than simply seek contributions to funding or a carry.”
Hardman was required to drill a well within the next 15 months as a part of the licence obligation, and its current strategy was to farm down from the 97% and bring in a partner to contribute to the drilling of that well, he said.
The company also has highly prospective blocks at the other end of South America, in the Falkland Islands, according to Potter.
Hardman’s partners in these prospects, the Falklands Oil and Gas Company, raised around £12 million by listing on the AIM in London, indicating the market’s in Falklands acreage.
“Currently we are collecting seismic where good images are being received directly off the vessel indicating a number of really interesting structures,” Potter told Corporate File.
“This considerable potential in our Falklands acreage will be assessed with a well within about two years.”
But Hardman is less excited about the prospectivity of offshore Gabon. The company has sold its stakes in two shallow water exploration PSC blocks to UK-based Ascent Resources.
“Since entering into the PSCs in November 1999, Hardman has carried out comprehensive technical work on the two contract areas, including mapping and interpretation of new 2D and 3D seismic acquired by the joint venture,” executive director Scott Spencer said.
“In reviewing its exploration portfolio the company has now concluded that its interests in the Gabon projects are less substantial than other project areas. Accordingly the company has decided to rationalise its portfolio by selling these interests to Ascent, thereby freeing up resources which can be applied to higher-priority projects.”
Initial consideration for the acquisition will be the issue of 12 million new ordinary shares in Ascent to Hardman.
Following completion, Ascent will also reimburse Hardman for US$515,765 of past costs. Further payments will be made to Hardman of A$500,000 in the event of successful recovery of hydrocarbons on testing from a well in either of the PSCs, and A$700,000 on issue of governmental approval for production from either of the PSCs.
The other partners in both PSCs are: Fusion Oil & Gas 20.57%, Premier Oil 18%, Petroleum Oil & Gas Corp of South Africa 22.86% and Sunburnt Downs Pastoral Company 25.71%.
