Hardy's Drilling Efforts Yield 2nd Gas Discovery

Hardy Oil and Gas plc, the oil and gas exploration and production company with assets in India and Nigeria, is pleased to announce the second gas discovery in the Company's D3 deepwater exploration block.

The well KGVD3-B1 was drilled in a water depth of 711 meters (m), to a total depth of 2,730 m, with the objective of exploring high amplitude geobodies of Pliestocene deep water fan complex and unconformity related structural traps at the Miocene level. Excellent quality reservoirs were encountered with gross hydrocarbon columns of approximately 111 m.

The potential of the zones was evaluated through wire-line based technology called Modular Dynamic Testing (MDT). The Government of India and Directorate General of Hydrocarbons have been notified of this discovery, (named Dhirubhai–41). The potential commercial interest of the discovery is being ascertained through further data gathering and analysis.

In February 2008, the Company announced the first gas discovery in the same block (named 'Dhirubhai–39') and notification of potential commercial discovery was recently submitted to the Government of India and Directorate General of Hydrocarbons.

Approximately 70 per cent of this block is covered by 3D Seismic survey and further prospect analysis is underway. This discovery has established a petroleum system in the block, the extent of which is being analysed.

The deepwater block awarded in NELP-V is situated 45 km away from the coast and covers an area of 3288 km2. This is the second gas discovery in this block. Hardy hold a 10 per cent participating interest with the operator Reliance Industries Limited (RIL) holding the remaining 90 per cent.

Commenting on the above developments, Sastry Karra, Chief Executive of Hardy said: "We are delighted with another positive result from our exploration drilling activity. This second discovery on the D3 block further enhances the prospectivity of this extensive block."