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'Good Oil Show' Reported at Fourth Albertine Oil Well

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Australian oil exploration company, Hardman Resources Limited, says it has encountered good oil shows at its Nzizi-1 well in Hoima district.



Hardman is an equal shareholder in Nzizi-1, together with Tullow Oil.



In a statement released today, the company says the discovery provides encouragement for future exploration of the Albertine basin in western Uganda.



The statement updates an initial report on the well published on Tuesday. It says this fourth discovery in four wells at the Exploration Area 2 block in the Albertine basin proves that the working oil system extends over a significantly greater area. It suggests the possibility of a significant increase in the recoverable volume reported so far for the adjoining Mputa and Waraga oil wells.



Nzizi-1 is situated approximately 5.5 kilometers to the south of the Mputa-2 appraisal well.



Hardman says it is studying a range of development options for the existing discoveries, which, combined with additional seismic data currently being acquired and future appraisal drilling, will determine ultimate commerciality of the oil wells.