Hardman's Mauritanian Equity

RNS Number:3502T
Hardman Resources Limited
16 December 2003



HARDMAN RESOURCES LTD

Ground Floor, 5 Ord Street, West Perth
PO Box 869, West Perth
Western Australia 6872
Tel: [phone] Fax: [phone]
ABN 98 009 210 235

STOCK EXCHANGE / MEDIA RELEASE

RELEASE DATE:     17 December 2003

CONTACT:          Ted Ellyard (08 9321 6881)

RE:               HARDMAN TO INCREASE EQUITY IN MAURITANIA





Hardman Resources Ltd is pleased to announce that it has entered into an
agreement to purchase a pro-rata entitlement share of Agip Mauritania BV's 35%
interest in PSC Areas A and B, offshore Mauritania, which contain the three
discoveries made by the Woodside-operated consortium to date. Hardman's equity
in Areas A and B will increase to 37.38% and 33.23% respectively and is a result
of the non-Agip joint venture partners pre-empting a proposed sale of the Agip
stake to a major international oil company.



In accordance with a prior agreement between the non-Agip joint venture
partners, Woodside will initially acquire 100% of the shares in Agip Mauritania
BV, a wholly owned subsidiary of the Italian oil and gas company ENI Exploration
BV, and will then on-sell the pro-rata interest entitlement to the remaining
joint venturers on the same terms. Agip Mauritania BV currently holds a 35%
interest in Area A, which contains the Banda discovery, and Area B, which
contains the Chinguetti and Tiof discoveries, and reached agreement some months
ago to sell its interest to a third party, prior to the successful Chinguetti
4-5 early development well and the Tiof oil and gas discovery.



The total cost of the acquisition of ENI's equity is expected to be
approximately US$62 million plus adjustments. In addition, a contingent payment
of up to US$15 million may be paid on completion of certain exploration,
development and production success milestones. On this basis, the net cost to
Hardman is expected to be in the vicinity of US$21 million plus adjustments.



The initial acquisition by Woodside and on-selling transactions to Hardman,
Fusion and ROC are expected to close early in 2004.



ANZ Banking Group Ltd is arranging a US$26 million corporate loan to assist
Hardman in financing its share of the ENI interest. Credit approval for the loan
has been received and loan documentation is on track to be completed within the
next four weeks, in time for payment to ENI on completion of the pre-emption
process.



Hardman's Managing Director, Ted Ellyard, said: "The opportunity to increase our
interest in the two core Mauritania PSCs is very fortunate, particularly as it
comes at a price negotiated in a sale to a major company before the successes
from the 2003 drilling programme. Hardman will now rank as the second largest
equity holder in all of the offshore Mauritania licenses (see map) in this
emerging world class petroleum province. We are sure that Mauritania will
provide the Company with strong growth potential in the near and longer term.


A final investment decision on the Chinguetti development is expected by
mid-2004 with first production expected in late 2005. This follows the
successful production flow testing of the early development well in October this
year, which has firmed up the reserves and enabled Hardman to move into the
final phase of its project financing.



The Tiof discovery has the potential to dramatically increase the value of these
Mauritanian areas in the short term.  Once the full extent of Hardman's
successful 2003 drilling programme has been evaluated in the new year, we will
be able to consider whether to retain all of the newly acquired ENI equity or
sell down a portion to provide further financing options."



Equity interests in the PSC licences for Area A and Area B following the Agip
acquisition will be:




Company                                         AREA A                   AREA B
                                          Pre-sale    Post-sale    Pre-sale    Post-sale
                                                 %           %            %           %
Woodside                                        35        53.84          35        53.84
Agip Mauritania BV                              35            -          35            -
Hardman Resources                             24.3        37.38        21.6        33.23
Fusion Mauritania                                3         4.61           6         9.23
ROC Oil                                        2.7         4.14         2.4         3.69



TED ELLYARD

MANAGING DIRECTOR




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQGUGUCPUPWPWQ