HDY.L Regulatory News (HDY)

22 Dec 2009 07:54



For Immediate Release 22 December 2009

Hardy Oil and Gas plc

("Hardy" or "the Company")

KGV-D3-R1 drilling update

Hardy Oil and Gas plc (LSE: HDY.L), the oil and gas exploration and production company, with assets in India and Nigeria, is pleased to announce its third successive gas discovery in the exploration block KG-DWN-2003/1 (D3) of NELP-V. 

The D3 license, in which the Company holds a 10% participating interest and is operated by Reliance, is located in the Krishna Godavari basin on the East Coast of India and covers an area of 

approximately 3,288km2.

The well KGV-D3-R1, the third in this block was drilled at a water depth of 1982 m and to a total measured depth of 4113 m. The objective was to explore the Miocene deep water lobe & onlapping wedges play fairway. Three reservoir zones were encountered at Miocene Level having gross thicknesses of 4, 23 and 16 meters. The potential of these were evaluated through a wire-line based technology called Reservoir Characterization Instrument (RCI). The discovery namely "Dhirubhai - 44" has been notified to Government of India and Directorate General of Hydrocarbons. The potential commerciality of the discovery is being ascertained through more data gathering and analysis,

This discovery supplements the understanding of the petroleum systems within the block. 3D seismic has been acquired over the entire block area. Besides the above discoveries, several other prospects have been mapped at different stratigraphic levels.

Commenting on the well results, Yogeshwar Sharma, Chief Operating Officer of Hardy said:

"We are delighted with third successive gas discovery from our D3 exploration block. We are encouraged by the results of this well which will certainly further improve the prospectivity of the block."

For further information please contact: 

Hardy Oil and Gas plc 020 7471 9850

Sastry Karra

Yogeshwar Sharma

Dinesh Dattani

Arden Partners plc 020 7614 5932

Richard Day

Buchanan Communications 020 7466 5000

Mark Edwards/Ben Willey

Notes

This update has been approved for issue by Yogeshwar Sharma, Chief Operating Officer of Hardy. Mr. Sharma is a Licenced Professional Engineer in Alberta Canada and a Member of the Society of Petroleum Engineers.

Glossary:

Reliance  Reliance Industries Limited

D3 exploration licence KG-DWN-2003/1

RCI Reservoir Characterisation Instrument

km2 square kilometres

m metres