OilVoice - Hardy Oil and Gas Reports Preliminary Results

Hardy Oil and Gas Reports Preliminary Results

Saturday, March 21, 2009

Hardy Oil and Gas plc, the oil and gas exploration and production company with interests predominantly in India, announces its Preliminary Results for the year ended 31 December 2008.

Operational Highlights

2008
• Two gas discoveries (Dhirubhai 39 and 41) on the D3 exploration block
• Acquired additional 1,165 km2 of 3D seismic data on the GS-01 block
• Added the onshore petroleum exploration licence AS-OON-2000/1 located in Assam (10% PI) in partnership with Reliance
• Farmed out 20% working interest in Oza to fund the field development programme
• Hardy’s net participating interest average daily production for FY 2008 was 458 stbd (FY 2007: 747 stbd)

2009 to date
• Commenced 3D seismic acquisition programme for D3 exploration block
• D3 appraisal programme submitted to DGH for review
• PY3-PD4 re-entry – the well was completed as a producer with a gas lift valve for future production once gas lift and compression facilities are installed
• Commenced 2D seismic acquisition programme for Assam exploration block

Financial Highlights
• Profit before taxation of $12.4 million* (2007: $10.6 million*)
• Cash flow from operations $1.6 million† (2007: $2.6 million†)
• Capital expenditure of $31.6 million (2007: $32.1 million)
• Cash and short term investments at 31 December 2008 of $30.1 million (2007: $31.9 million)

† Before charges in non-cash working capital
* Including gain from sale of investment

Outlook
• D3: Drilling of third exploration well on the D3 block expected in H2 2009 and completion of 3D seismic acquisition programme on the D3 block in H1 2009
• Technical review: Publication of a third party technical review updating the Company’s D9, D3 and Assam exploration block potential, is anticipated by the end of Q209
• D9: The joint venture budget has provided for the drilling of one well in the 2009 calendar year.

Commenting on the results, Mr E.P. Mortimer, Chairman of Hardy said:
"Commitment to our strategy of organic growth through exploration of our India assets produced encouraging results in 2008. The potential represented by our D3 discoveries is a major contributor to significantly de-risking Hardy’s growth potential from its exploration blocks in the Krishna Godavari basin."

All financial amounts in US dollars unless otherwise stated.