Hardy Oil Reports Offshore India Discovery

Hardy Oil and Gas plc), the exploration and production company with assets in India and West Africa, announced the discovery of hydrocarbons in the well Fan-A-1.

The CY-OS/2 license, in which the Company owns a 75% participating interest and is Operator, is located in the Cauvery Basin on the East Coast of India.

Drilling has been completed in the exploration well to a depth of 4089m. During drilling, several sand bodies with a high pressure of hydrocarbons were encountered in the Cretaceous section of the well, of which five were identified with potential for production of hydrocarbons. Three of these intervals were chosen for production testing. The first zone at 3755m - 3817m was perforated over 9m and flowed both gas and 42deg API oil to the surface. However, the test had to be aborted prematurely due to mechanical problems in the DST string. The Company is considering the option to sidetrack and retest the zone after completing the testing of shallower intervals.

The second interval at 3565m - 3569m is currently being tested and recorded an initial rate of 10mmscf/d with a condensate content of approximately 20bbls/ mmscf, on a 52/64" choke from a 4m interval. MDT pressures recorded in this zone were in the order of 7800 psi. The Company plans to move to the next shallower interval at a depth of 3333m after completing testing at the current interval of 3565m - 3569m.

Hardy plans to submit a detailed appraisal program for the contract area to the Government of India, as soon as the preliminary review of the test results is completed.

Commenting on the well results, Yogeshwar Sharma, Managing Director of Hardy said:

"Although still early days, the Board is delighted at the results of this exploration well and Hardy will now begin a detailed evaluation of this discovery and the commercial value of the hydrocarbons encountered."

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