HDY.L Regulatory News (HDY)

3 Apr 2008 07:01

Hardy Oil & Gas plc03 April 2008 For immediate release 3 April 2008 Hardy Oil and Gas plc ("Hardy" or "the Company") Nigerian Activity Update Hardy Oil and Gas plc (LSE: HDY) the oil and gas exploration and productioncompany with assets in Inida and Nigeria, announces that has executed anagreement to farm-out a 20 per cent. interest in the Oza field located onshoreNigeria. The farmee is Emerald Energy Resources Limited ("Emerald"), a prominent Nigerianowned company, which operates the Nigerian offshore exploration block OPL 229.Hardy will retain a 20 per cent. working interest in the field with theoperator, Millenium Oil and Gas Company Limited, holding the remaining 60 percent working interest. Under the terms of the farm out agreement, Emerald is assuming Hardy'sobligation to fund the initial work programme of the Oza field. The proposedinitial work programme encompasses the installation of over 15 kilometres ofpipeline, gas compression, and various processing equipment requiring anestimated capital expenditure of US$15 million. The farm out is subject togovernment approval. In addition, Memoranda of Understanding have been executed with Emeraldregarding an integrated gas utilisation project and other upstream opportunitiesin Nigeria. Commenting on Hardy's Nigerian strategy, Mr. Sastry Karra, Chief Executive,said: "We believe that the Niger Delta offers attractive investment opportunities andthe Company will look to further participation in this region on a selectivebasis. Hardy's Nigerian strategy is to pursue opportunities offering low costdevelopment projects in onshore and near-shore Nigeria." For further information please contact: Hardy Oil and Gas plc 020 7471 9850Sastry Karra, Chief ExecutiveYogeshwar Sharma, Chief Operating OfficerDinesh Dattani, Finance Director Arden Partners plc 020 7398 1632Richard Day Buchanan Communications 020 7466 5000Mark EdwardsBen Willey Hardy web page: www.hardyoil.com This information is provided by RNS The company news service from the London Stock Exchange