Reliance Spuds KGV-D3-R1 Exploratory Well Offshore India

Deepwater Expedition Drillship
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KG Block
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Hardy Oil and Gas reported that Reliance Industries has commenced drilling of the exploration well KGV-D3-R1 on the Company's KG-DWN-2003/1 (D3) exploration license.

The exploratory well KGV-D3-R1 commenced drilling on November 2, 2009, with the Transocean Deepwater Expedition, in water depth of approximately 1,964 m. The target depth of the KGV-D3-R1 well is 4,710 m MDRT to explore the hydrocarbon potential of various Miocene age sands. This well is part of the Company's ongoing exploration program in the Krishna Godavari Basin on the East Coast of India and the Company expects to drill three additional exploration wells on the block before the end of 2010.

The D3 license is located in the Krishna Godavari Basin on the East Coast of India, covers an area of approximately 3,288 km2 and provides for the drilling of a minimum of six exploration wells within the first exploration phase. The Company holds a 10 percent participating interest in the Reliance-operated exploration block. The first two exploratory wells (KGV-D3-A1 and KGV-D3-B1) resulted in gas discoveries (Dhirubhai 39 and 41) and are presently under appraisal.

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