HDY.L Regulatory News (HDY)

11 Jan 2008 07:01

Hardy Oil & Gas plc11 January 2008 For Immediate Release 11th January 2008 Hardy Oil and Gas plc ("Hardy" or "the Company") Publication of Competent Person's Report Hardy Oil and Gas plc (AIM:HDY) the oil and gas exploration and productioncompany, with assets in India and Nigeria, today announces the publication ofits latest resource and reserve assessment, completed by Gaffney, Cline &Associates. The report is being published in conjunction with the Listing Document relatingto Hardy's proposed move from AIM to the Official List of the UKLA, with itsshares to be admitted for trading on the London Stock Exchange. The move to theOfficial List is anticipated to occur in Q1 2008. The full report can be downloaded from Hardy's website -http://www.hardyoil.com. Commenting on the report, Yogeshwar Sharma, Chief Operating Officer of Hardysaid: "The report confirms the hydrocarbon potential Hardy has in its portfolio, withboth high risk/high impact exploration and lower risk resource and reservepotential. The Company anticipates that 2008 will see the de-risking of thispotential through our drilling plans, and with our partners we look forward toadding material value to our shareholders. "The planned move to the Official List of the UKLA early this year is areflection of how Hardy has matured as a business since listing on AIM in June2005. With access to new institutional shareholders, along with a clear exposureto the Indian economic growth story, we look forward to the future withconfidence." For further information please contact: Hardy Oil and Gas plc 020 7471 9850Yogeshwar Sharma Arden Partners plc 020 7398 1600Richard Day Buchanan Communications 020 7466 5000Mark Edwards/Ben Willey SUMMARY OF INTERESTS Hardy has interests in a number of assets in India and Nigeria that compriseproduction, potential development, discoveries and exploration. The Indian assets are held through Hardy Exploration & Production (India) Inc, awholly owned subsidiary. The pertinent Net Participating Interest (NPI)fractions are comprised of the following: • PY-3 producing oil asset, located in the CY-OS-90/1 Production Licencesub-block of CY-OS/2 in the Cauvery Basin, offshore Tamil Nadu in south-westernIndia (Hardy NPI 18%); • Block CY-OS/2, located in the Cauvery Basin, offshore Tamil Nadu (Hardy NPI75%); • Block GS-01 (NELP II), located in the Bombay offshore Basin, to the West andNorthwest of the ONGC operated Bombay High field (Hardy NPI 10%); • Block D9 (NELP III) in the offshore Krishna-Godavari Basin (Hardy NPI 10%),located immediately to the east of Reliance's 2003 gas discoveries in BlockKG-DWN-98/3; and • Block D3 (NELP V), in the offshore Krishna-Godavari Basin due west and some 50km inshore of the Reliance concession mentioned above (Hardy NPI 10%). The Nigerian assets are held through Hardy Oil Nigeria Limited, a wholly ownedsubsidiary. Both blocks are onshore in the Niger Delta Basin and the pertinentNet Working Interest (NWI) fractions are comprised of the following: • Oza Field concession area, a formerly producing oilfield (Hardy NWI 40%)located in Oil Mining Licence (OML) 11 in Rivers State, and 33 km northeast ofthe city of Port Harcourt; and, • Atala concession area (Hardy NWI 20%), located in OML 46 in Bayelsa State inthe Coastal Swamp Depobelt, less than 10 km from the coast. RESERVES The PY3 field is Hardy sole producing asset from which revenues are derived. Asat 30 June 2007, estimated gross and net entitlement oil Reserves were reportedas follows: Gross Oil Reserves MMbbl Net Entitlement Reserves MMbbl Hardy Proved Proved + Proved, Interest Proved Proved + Proved, Probable Probable + Probable Probable + Possible Possible PY-3 5.09 17.57 23.81 18% 0.82 2.69 3.44 CONTINGENT RESOURCES The Company through acquisition and exploration has added to its resourcescategories additional hydrocarbons in both India and Nigeria. These contingentresources are summarised below: Gross and net natural gas Contingent Resources Gross Contingent Hardy Interest Net Hardy Contingent Resources (%) Resources Bcf BcfLicence 2C 2CGS-01, India 91.5 10 9.1Atala, Nigeria 359.0 20 71.8 Total 450.5 80.9 Note: The primary Contingent Resource volume reported here is the 2C, or 'BestEstimate', value. Gross and net oil Contingent Resources Gross Contingent Hardy Interest Net Hardy Contingent Resources MMbbl (%) Resources MMbblLicence 2C 2CCY-OS/2(Ganesha-1Deep Fan) 24.0 75 18.0Oza field Nigeria 3.8 40 1.5Atala field Nigeria 7.5 20 1.5 Total 35.3 21.0 Notes: 1. The primary Contingent Resource volume reported here is the2C, or 'Best Estimate', value 2. In the event of a commercial discovery, ONGC has the optionto back-into the CY-OS/2 licence at an interest of 30% PROSPECTIVE RESOURCES Hardy also has an extensive exploration portfolio in both India and Nigeria.Based on technical data and evaluation, the Company's hydrocarbon prospects aresummarised below,. Gross and net natural gas Prospective Resources - Prospects Gross Prospective Hardy Net Hardy Prospective GCoS Resources Bcf Interest Resources Bcf (%) (%)Licence Prospect Best estimate Best estimate CY-OS/2 Shree Miocene Channel 1 105.0 75 78.8 14 Shree Miocene Channel 2 132.0 75 99.0 14GS-01 B2 103.0 10 10.3 30 B1/B2 66.0 10 6.6 30 S1 190.0 10 19.0 30 Prn 1 54.0 10 5.4 10D3 KGD-1 71.0 10 7.1 25 KGD-2 113.0 10 11.3 20 KGD-3 66.0 10 6.6 20 KGD-11 143.0 10 14.3 20 KGD12 18.0 10 1.8 15 * It is inappropriate to report summed-up Prospective Resource volumes or tootherwise focus upon those of other than the 'Best Estimate' Notes: 1. The Geologic Chance of Success (GCoS) reported hererepresents an indicative estimate of the probability that the drilling of thisprospect would result in a discovery which would warrant the re-categorisationof that volume as a Contingent Resource. The GCoS value for Contingent Resourceis 100%. These GCoS percentage values have not been arithmetically appliedwithin this assessment 2. A Prospect is defined as "A project associated with apotential accumulation that is sufficiently well defined to represent a viabledrilling target" 3. In the event of a commercial discovery, ONGC has the optionto back-into the CY-OS/2 licence at an interest of 30% Gross and net oil Prospective Resources - Prospects Gross Prospective Hardy Interest Net Hardy Prospective GCoS Resources MMBbl (%) Resources MMBbl (%) Licence Prospect Best estimate Best estimate CY-OS/2 Ganesha - 1 Top fan 61.6 75 46.2 25 SE Four - Way Closure 7.0 75 5.3 25 Shree - Cretaceous 4.5 75 3.4 14 * It is inappropriate to report summed-up Prospective Resource volumes or tootherwise focus upon those of other than the 'Best Estimate' Notes: 1. The Geologic Chance of Success (GCoS) reported hererepresents an indicative estimate of the probability that the drilling of thisprospect would result in a discovery which would warrant the re-categorisationof that volume as a Contingent Resource. The GCoS value for Contingent Resourceis 100%. These GCoS percentage values have not been arithmetically appliedwithin this assessment 2. A Prospect is defined as "A project associated with apotential accumulation that is sufficiently well defined to represent a viabledrilling target" 3. In the event of a commercial discovery, ONGC has the optionto back-into the CY-OS/2 licence at an interest of 30% Prospective Resources - Leads In addition to the Prospects listed above, a number of 'Leads' have beenidentified in Hardy's acreage. Most notable of these is Block D9 in the KrishnaGodavari deep water basin where three Leads have been identified from directhydrocarbon indicators on seismic data. These Leads are at different geologicalhorizons and are assessed below: Gross Prospective Hardy Interest Net Hardy Prospective GCoS Resources Bcf (%) Resources Bcf (%) Licence Lead Best estimate Best estimate D9 Upper Miocene 13,000 10 1,300 15 Middle Miocene 19,000 10 1,900 15 Oligocene 13,000 10 1,300 15 * It is inappropriate to report summed-up Prospective Resource volumes or tootherwise focus upon those of other than the 'Best Estimate' Notes: 1. The Geologic Chance of Success (GCoS) reported hererepresents an indicative estimate of the probability that the drilling of thisprospect would result in a discovery which would warrant the re-categorisationof that volume as a Contingent Resource. The GCoS value for Contingent Resourceis 100%. These GCoS percentage values have not been arithmetically appliedwithin this assessment 2. A 'Lead' is defined as a "Project associated with apotential accumulation that is currently poorly defined and requires more dataacquisition and/or evaluation in order to be classified as a Prospect". As suchit must be appreciated that a Lead carries a higher risk than a Prospect This update has been approved for issue by Yogeshwar Sharma, Chief OperatingOfficer of Hardy. Mr. Sharma is a Licenced Professional Engineer in AlbertaCanada, a member of the Society of Petroleum Engineers and a member of theSociety of Industrial and Applied Mathematics. Classification & Categorization of Hydrocarbon volumes: Gaffney, Cline &Associates Ltd have used the Petroleum Resources Management System published bythe Society of Petroleum Engineers, World Petroleum Council, AmericanAssociation of Petroleum Geologists and Society of Petroleum EvaluationEngineers in March 2007 (SPE PRMS) as the basis for its classification andcategorization of hydrocarbon volumes Glossary: GCoS Geological chance of successBbl BarrelsBcf Billion cubic feetM ThousandMM MillionGIIP Gas initially in placeSTOIIP Stock tank oil initially in place2C Best Estimate Contingent ResourcesONGC Oil and Natural Gas Corporation Ltd. This information is provided by RNS The company news service from the London Stock Exchange