8 Jun 2018 15:30
8 June 2018
Hardy Oil and Gas plc
(LSE: HDY)
DISTRICT COURT OF THE DISTRICT OF COLUMBIA RULING
Hardy Oil and Gas plc ('Hardy'), the oil and gas exploration and production company focused in India, announces that the District Court of the District of Columbia of the United States (DC) issued an order denying Hardy Exploration & Production (India) Inc's (HEPI) application to confirm the CY-OS/2 arbitration award.
HEPI is reviewing the DC order to assess the further legal options available. A copy of the full judgement is available on the DC website www.dcd.uscourts.gov.
For further information please visit www.hardyoil.com or contact:
Hardy Oil and Gas plc | 012 2461 2900 |
Ian MacKenzie, Chief Executive Officer Richard Galvin, Treasurer | |
Arden Partners plc | 020 7614 5900 |
Ciaran Walsh Paul Shackleton | |
Tavistock | 020 7920 3150 |
Simon Hudson Barney Hayward |
CY-OS/2 exploration licence background - Hardy is the operator of the CY-OS/2 exploration block and holds a 75 per cent participating interest. The block is in the northern part of the Cauvery Basin immediately offshore from Pondicherry, India and covers approximately 859 km2. The Ganesha-1 discovery well was drilled to a depth of 4,089 m and on testing the well flowed natural gas at a peak rate of 10.7 mmscfd.
Award summary - relinquishment by the Ministry of Petroleum and Natural Gas (MOPNG) of the GOI was illegal; the unincorporated Joint Venture (uJV) shall be entitled to a period of three years from the date on which the block is restored to it, to carry out further appraisal; the uJV shall be paid compensation calculated at the simple rate of 9 per cent per annum on the amount of Rs. 5.0 billion from the date of relinquishment till the date of the award; interest will then accrue at a rate of 18 per cent per annum on the amount of Rs. 5.0 billion until the block is restored to the uJV.
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