Reliance to Abandon One Well in D9 Exploration Program

Hardy Oil and Gas has reported on drilling results for the first of a four well program on the Company's D9 (KG-DWN-2001/1) exploration license, where Reliance Industries Limited serves as operator.

The exploratory well KGD-A1 drilled to a total depth of 4,875 m TVDRT (4,861 m subsea) to explore the Middle and Lower Miocene targets, will be plugged and abandoned.

While encountering some background gas while drilling, the well encountered poor reservoir sands in both the Middle and Lower Miocene target levels. The data obtained from this first exploration parametric well is very significant and will be integrated with the existing geological model to improve the prospectivity of the block before drilling subsequent wells. The first phase of the D9 exploration license provides for the drilling of a further three exploration wells in the block.

Hardy, through its wholly owned subsidiary Hardy Exploration & Production (India) Inc., holds a 10 percent participating interest in the D9 block which is located in the Krishna Godavari basin on the East Coast of India covering an area of approximately 11,605 km2. Reliance Industries Limited is the operator and holds a 90 percent participating interest in the block.