31 Aug 2010 08:42
For immediate release 31 August 2010
Hardy Oil and Gas plc
("Hardy" or "the Company")
KGV-D3-W1 Drilling Update
Hardy Oil and Gas plc (LSE: HDY.L), the oil and gas exploration and production company, with assets predominantly in India, is pleased to announce its fourth successive gas discovery in the exploration block KG-DWN-2003/1 (D3) of NELP-V.
The well KGV-D3-W1, the fourth exploration well in this block, was drilled to a total measured depth of 3,501 m at a water depth of 1,653 m. A gross gas pay zone of 37.5m was encountered in Pliocene aged sands. The potential of the pay was evaluated by wire-line based modular pressure testing tool and collection of gas samples. The discovery (Dhirubhai-52) 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.
The D3 license, in which the Company holds a 10 percent 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.
Commenting on the well results, Yogeshwar Sharma, Chief Executive Officer of Hardy said:
"Four successive discoveries highlight the significant prospectivity of this extensive exploration block. The Krishna Godavari Basin is an emerging world class basin for India. Further exploration drilling is planned in this area and we look forward to continuing to participate in unlocking of the basin's exceptional energy potential."
For further information please contact:
Hardy Oil and Gas plc 020 7471 9850
Yogeshwar Sharma
Dinesh Dattani
Arden Partners plc 020 7398 1600
Richard Day
Buchanan Communications 020 7466 5000
Mark Edwards/Ben Willey
NOTES
This update has been approved for issue by Yogeshwar Sharma, Chief Executive Officer of Hardy. Mr. Sharma is a Licenced Professional Engineer in Alberta Canada and a Member of the Society of Petroleum Engineers.
GLOSSARY OF TERMS
Reliance Reliance Industries Limited
D3 exploration licence KG-DWN-2003/1
km2 square kilometres
m metres
NOTES TO THE EDITORS
Hardy Oil and Gas plc is an upstream international oil and gas company whose assets are principally in India. Its portfolio includes a blend of exploration, appraisal, development, and production assets. Hardy's goal is to evaluate and exploit its asset base with a view to creating significant value for its shareholders.
Hardy Oil and Gas plc has existing production from an offshore field in India's Cauvery basin. Hardy also has interests in four offshore exploration blocks in India's Saurashtra, Cauvery, and Krishna Godavari basins, one onshore exploration block in the Assam basin and two development licences in Nigeria.
Hardy is incorporated under the laws of the Isle of Man and headquartered in London, UK. Ordinary shares of Hardy were admitted to the Official List and the London Stock Exchange's market for listed securities effective 20 February 2008 under the symbol HDY.
The Company's Indian assets are held through the wholly owned subsidiary Hardy Exploration & Production (India) Inc, located in Chennai, India. The Company's Nigerian assets are held through wholly owned subsidiary Hardy Oil Nigeria Limited, located in Lagos, Nigeria.
For further information please refer to our website at www.hardyoil.com