Hardy Wins India Court Decision over Ganesha-1 Discovery

Hardy Oil and Gas reported Monday that the Hon'ble tribunal in India has issued an award in the company's favor regarding the nature of its Ganesha-1 discovery, which is located in the CY-OS/2 exploration block offshore India. The company said that it can now go ahead with undertaking appraisal activities on the block.

In January 2007, Hardy reported that its Fan A-1 exploration well (the Ganesha well) had discovered hydrocarbons but in 2009 the Indian upstream oil and gas regulator (the DGH) informed the company that the Ganesha discovery is classified as an oil discovery, which meant that the allowed appraisal period for the discovery had lapsed.

Hardy, the operator of the CY-OS/2 exploration block with a 75-percent interest, that the Hon'ble tribunal's decision now means it can undertake appraisal activities on the block for another three years. The tribunal also awarded Hardy and its partners recovery of costs incurred as a result of the arbitration.

Ganesha-1 is a natural gas discovery located immediately offshore from Pondicherry, India. It is estimated at holding 2C contingent resources of approximately 130 billion cubic feet and has already been flow tested at a peak rate of 10.7 million standard cubic feet per day.




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