HDY.L Regulatory News (HDY)

8 Jan 2007 07:01

Hardy Oil & Gas plc08 January 2007 For release at 07.00a.m. 8 January 2007 Hardy Oil and Gas plc ("Hardy" or "the Company") CY-OS/2 Drilling Update Hardy Oil and Gas plc (AIM:HDY), the exploration and production company withassets in India and West Africa, is pleased to announce as a drilling update,the discovery of hydrocarbons in the well Fan-A-1. The CY-OS/2 license, in which the Company owns a 75% participating interest andis Operator, is located in the Cauvery Basin on the East Coast of India. Drilling has been completed in the exploration well to a depth of 4089m. Duringdrilling, several sand bodies with a high pressure of hydrocarbons wereencountered in the Cretaceous section of the well, of which five were identifiedwith potential for production of hydrocarbons. Three of these intervals werechosen for production testing. The first zone at 3755m - 3817m was perforatedover 9m and flowed both gas and 42deg API oil to the surface. However, the testhad to be aborted prematurely due to mechanical problems in the DST string. TheCompany is considering the option to sidetrack and retest the zone aftercompleting the testing of shallower intervals. The second interval at 3565m - 3569m is currently being tested and recorded aninitial rate of 10mmscf/d with a condensate content of approximately 20bbls/mmscf, on a 52/64" choke from a 4m interval. MDT pressures recorded in this zonewere in the order of 7800 psi. The Company plans to move to the next shallowerinterval at a depth of 3333m after completing testing at the current interval of3565m - 3569m. Hardy plans to submit a detailed appraisal program for the contract area to theGovernment of India, as soon as the preliminary review of the test results iscompleted. Commenting on the well results, Yogeshwar Sharma, Managing Director of Hardysaid: "Although still early days, the Board is delighted at the results of thisexploration well and Hardy will now begin a detailed evaluation of thisdiscovery and the commercial value of the hydrocarbons encountered." For further information please contact: Hardy Oil and Gas plc 020 7471 9850Yogeshwar Sharma Arden Partners 020 7398 1600Richard Day Buchanan Communications 020 7466 5000Mark Edwards/Ben Willey Notes This update has been approved for issue by Yogeshwar Sharma, Managing Directorof Hardy. Mr. Sharma is a Licenced Professional Engineer in Alberta Canada anda Member of the Society of Petroleum Engineers. This information is provided by RNS The company news service from the London Stock Exchange