16 Jul 2008 07:00
| For Immediate Release | 16 July 2008 |
Hardy Oil and Gas plc
("Hardy" or "the Company")
Operational Update - GS-01 Exploration Licence
Hardy Oil and Gas plc (LSE: HDY), the oil and gas exploration and production company with assets in India and Nigeria is pleased to announce the commencement of drilling of the exploration well GS01-M1 and the adoption of an appraisal programme for the GS01-B1 discovery (Dhirubhai-33) in the GS-OSN-2000/1 (GS-01) exploration license.
The exploratory well GS01-M1 has commenced drilling at a water depth of 82 m with the semi-submersible drilling rig "Actinia". The well is targeted to drill to 4,326 m TVDRT to explore the hydrocarbon prospectivity of Oligocene reefal carbonates and Eocene platform build-up carbonate bodies. The GS01-M1 well is the fourth exploration well on the GS-01 block and is located within an area covered by 3D seismic data that was acquired in the first quarter of 2008.
Operations on the GS01-S1 exploration well are ongoing with the semi-submersible drilling rig "C Kirk Rhein".
The GS-01 management committee recently reviewed and adopted an appraisal programme and budget for the GS01-B1 gas and condensate discovery (Dhirubhai - 33). The appraisal area comprises 5,890 km2 with an effective term through to May 2010. As announced on 15 May 2007, the GS01-B1 well flow-tested at a rate of 18.6 mmscfd gas with 415 stbd of condensate through a 56/64" choke at flowing tubing head pressure of 1,346 psi.
Hardy, through its wholly owned subsidiary Hardy Exploration & Production (India) Inc., holds a 10 per cent participating interest in the GS-01 exploration license. Reliance Industries Limited is the operator and holds a 90 per cent participating interest in the block.
Commenting on the drilling update Sastry Karra, Chief Executive of Hardy said:
"The appraisal programme on GS-01 is designed to further define the resource and reserve potential on the block, and to determine the commercial feasibility of the Dhirubhai 33 discovery."
For further information please contact:
| Hardy Oil and Gas plc | 020 7471 9850 |
| Sastry Karra, Chief Executive Yogeshwar Sharma, Chief Operating Officer Dinesh Dattani, Finance Director | |
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| Arden Partners plc | 020 7398 1632 |
| Richard Day |
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| Buchanan Communications | 020 7466 5000 |
| Mark Edwards Ben Willey |
GLOSSARY:
3D - three dimensional
GS-01 - India exploration licence GS-OSN-2000/1
km - kilometre
m - metres
mmscfd - million standard cubic feet per day
psi - pound per square inch
stbd - stock tank barrel per day
TVDRT - total vertical depth from rotary table
NOTES TO THE EDITORS
Hardy Oil and Gas plc is an upstream international oil and gas company whose assets are principally in India and to a lesser extent in Nigeria. Its portfolio includes a blend of production, development, appraisal and exploration 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, 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 blocks in India are owned by its wholly owned subsidiary Hardy Exploration & Production (India) Inc whose offices are located in Chennai, India. The Nigeria operations are owned by the Company's wholly owned subsidiary Hardy Oil Nigeria Limited whose offices are located in Lagos, Nigeria.
For further information please refer to our website at www.hardyoil.com.