Hardy Posts Interim Results for First Half of 2008

Hardy Oil and Gas plc has posted its Interim Results for the six months ended June 30, 2008.

All financial amounts are stated in US dollars unless otherwise indicated.

Operational Highlights

  • Two gas discoveries on the D3 block (Dhirubhai 39 and 41) in the KG basin.
  • Acquired 1,166 km2 of 3D seismic data on the GS-01 block and commenced the drilling of two exploration wells (GS01-S1 plugged and abandoned; GS01-M1 drilling).
  • Secured approval of an appraisal programme for the GS01-B1 (Dhirubhai 33) discovery.
  • Net average daily production of 505 stbd (H1 2007: 890 stbd).
  • Secured offshore drilling rig for re-entry of PY3-PD4 well.
  • Added an onshore petroleum exploration licence in Assam.

Financial Highlights

  • Revenue (after profit oil) increased to $9.9 million (H1 2007: $7.0 million).
  • Sales oil of 126,343 stb (H1 2007: 143,982 stb) with an average price of $100.97 per stb (H1 2007: $62.80 per stb).
  • Realized a gain on investment of $9.0 million from the sale of 5.06 million HOEC shares.
  • Net profit increased to $6.2 million (H1 2007: $1.9 million).
  • Capital expenditure amounted to $15.1 million principally on the drilling of wells on the D3 and GS-01 blocks and the acquisition of 3D seismic data.
  • Cash increased to $40.3 million (2007: $31.2 million).

Chairman's Comment

"The Company has made significant progress in moving its exploration and development programs forward. We will continue to focus on implementing our active drilling program with up to 14 wells scheduled through to the end of 2009. The Board expects the exploration drilling program for D9 to commence in 2008."