HDY.L Regulatory News (HDY)

15 May 2007 07:04

Hardy Oil & Gas plc15 May 2007 Immediate Release 15 May 2007 Hardy Oil and Gas plc ("Hardy" or "the Company") GS-01-B1 drilling update Hardy Oil and Gas plc (AIM:HDY), the oil and gas exploration and productioncompany, with assets in India and Nigeria, is pleased to announce the discoveryof hydrocarbons in the GS-01-B1 well on the GS-OSN-2000/1 ("GS-01") explorationlicence. The GS-01 license, in which the Company holds a 10% participating interest andis operated by Reliance Industries Limited ("RIL"), is located in theGujarat-Saurashtra Basin on the West Coast of India and covers an area of8,841km2. The exploratory well GS-01-B1 commenced drilling on 2 March 2007 in a waterdepth of 79 metres with the semi-submersible Rig "Actinia". The exploration wellwas drilled to a depth of 2,282 metres measured depth from the rotary table("MDRT") and encountered natural gas and condensate within the mid MioceneLimestone over an interval from 1,988 to 2,052metres MDRT. Two intervals selected for cased hole drill stem testing ("DST"), were 1,988 to1,993 metres and 2,019 to 2038 metres MDRT respectively. The test producednatural gas at a rate of 18.6 million cubic feet per day ("MMCFD") together with415 barrels a day ("bbls/d") of condensate through a 56/64" choke with FlowingTubing Head Pressure ("FTHP") of 1,346psi. Although early indications are very encouraging, the potential extent andcommerciality of the above discovery is yet to be established. Analysis of thewell results is ongoing and it is anticipated that further exploration andappraisal activities will be proposed by RIL in the near future. Commenting on the well results, Yogeshwar Sharma, Managing Director of Hardysaid: "We are delighted with another positive result from our exploration activity. Weare encouraged by the initial results of this well and the overall improvementof the prospectivity of this extensive exploration licence." 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 and aMember of the Society of Petroleum Engineers. This information is provided by RNS The company news service from the London Stock Exchange