In Mauritania, Hardman has been busy with the Chinguetti field, the Tiof oil discovery and the Dana JV areas. According to the firm, “[The] development of the Chinguetti Field will proceed following joint venture approval on 31 May 2004 and the award of a production licence for an initial period of twenty five years. Capital investment is expected to be up to US$600 million for Phase I of the project, including contingency amounts.”
“The key contracts for the Chinguetti project have now been awarded and include the FPSO lease contract with Bergesen d.y. Offshore AS, supply of subsea hardware by FMC and drilling of production and injection wells by Smedvig and Stena drilling,” it added.
In the Dana JV areas, plans are underfoot to drill an appraisal well in PSC Block 1. The drilling will be conducted by operator Woodside Petroleum but any drilling in Block 1 is at the mercy of rig schedules. Furthermore, following the Pelican gas discovery, technical studies on Dana’s Block 7 is ongoing.
Hardman is also planning a busy exploration program this year for the Tiof oil discovery.
In a statement the firm said, “In conjunction with the 2004 exploration drilling program the PSC Area B joint venture has approved the drilling of up to four appraisal wells on the Tiof structure (3 firm, 1 contingent).”
“It is intended that one of the wells will be completed for production and flow tested. One of the two drillships is scheduled to commence the Tiof appraisal drilling upon arrival in August/September 2004,” added the firm.
Aside from Mauritania, Hardman has been busy with its other overseas investments; in Eritrea with an MOU on the Massawa Block PSC, a 22.5% interest in a JV with Falklands Oil & Gas Ltd, the completion of information gathering in Gabon, negotiations with possible farmin partners for the Matamata prospect in French Guiana and data acquisition in New Zealand and the Timor Sea.
On the oil production front, despite selling its North Perth Basin assets (including the Woodada gas field, Hardman retains a 12% equity in Jingemia oil field. According to the firm, “During the previous quarter the Company completed an agreement with Arc Energy Limited to sell its North Perth Basin assets for a total consideration of A$7,644,000. However, the Company has retained a 12% interest in EP413 and the producing Jingemia Oil Field under a put and call option whereby it can sell the remaining interest to Arc Energy for an additional A$5.4 million cash payment at any time until 30 June 2005.”
“The government has now granted a production licence (L14) covering the Jingemia Oil Field within permit EP413 on 18 June 2004 [and] oil production continued during the quarter from Jingemia-1 well under an extended production test (EPT) licence. Total production during the quarter to 30 June 2004 was 143,665 barrels of which Hardman’s 12% equity share was 17,240 barrels, resulting in net gross revenue of A$927,110,” it added.
Finally, on the corporate front, Hardman completed a capital raising of A$167.8 million on the back of a place to Australian and European investors and an entitlement issue to its existing shareholders. According to Hardman, “The entitlement issue had a 91.12% take up and, by prior agreement, the shortfall was allotted on a pro-rata basis to the placees.”
