HDY.L Share News (HDY)

India-focused Hardy Oil and Gas has sunk to its lowest in five months despite announcing the start of drilling at exploration well KGV-D3-R1 on the KG-DWN-2003/1 (D3) exploration license.The drilling rig, in water depth of about 1,964m, will proceed to a target depth of 4,710m to explore the hydrocarbon potential of various Miocene age sands. Hardy's well is part of its ongoing exploration program in the Krishna Godavari Basin on the East Coast of India. It expects to drill three more exploration wells on the block before the end of 2010.The first two exploratory wells (KGV-D3-A1 and KGV-D3-B1) resulted in gas discoveries (Dhirubhai 39 and 41) and are presently under appraisal. Hardy's shares have been under pressure during the past few weeks. Last month it said the exploratory well KGD-A1 in the D9 exploration licence encountered some background gas, but the reservoir sands in the targeted Middle and Lower Miocene levels were poor. The well has now been plugged and abandoned. Hardy owns a 10% interest in D3 and D9, with Reliance Industries, the licence operator, owning the rest.