Reliance Spuds New D3 Exploration Well in KG Basin Offshore India

Krishna Godavari Basin
(Click to Enlarge)

Hardy Oil and Gas has announced that the third exploration well KGV-D3-G1 on the Company's D3 (KG-DW-2003/1) exploration license was spud on April 14, 2009 with a planned total depth ('TD') of 2,510 m TVDss. The D3 block is located within the Krishna Godavari basin, a proven prolific hydrocarbon province.

The exploration well KGV-D3-G1 is located at a water depth of 1,233 m and will explore the sands in Pleistocene slope debris complex and Pliocene / Late Miocene deep water channel-levee-lobe complex.

The Transocean drillship, Discoverer 534, which was carrying out completion work in Reliance Industries Limited ('RIL') nearby D6 block is currently drilling the KGV-D3-G1 well. Considering the present schedule of availability of the rig, it is planned to drill and lower 20" casing and suspend the operation for re-entry at a later date as the drillship's blowout preventer ("BOP") repair is in progress. In the event that the BOP repair is completed in time, it is intended to complete the drilling of the entire well to TD.

The D3 license, in which the Company holds a 10% participating interest and is operated by RIL, is located in the Krishna Godavari basin on the East Coast of India and covers an area of approximately 3,288 km2.

The KGV-D3-G1 is located approximately 20 km southwest of the Company's two gas discoveries (Dhirubhai 39 and 41) in the block that were announced earlier in 2008. The appraisal program of the Dhirubhai 39 and 41 discoveries, which has been approved by the operating committee, is presently being reviewed by the Directorate General of Hydrocarbons of the Government of India.

Commenting on the drilling, Yogeshwar Sharma, Chief Operating Officer said, "We are pleased to have brought forward the D3 drilling programme as it provides an opportunity to further de-risk the prospectivity of the D3 block and highlights the importance of the Krishna Godavari Basin to our asset portfolio."

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