Hardy Awarded India License Extension

Hardy Oil and Gas has said that the tribunal, hearing its dispute regarding the nature of the Ganesha-1 natural gas discovery, located in the CY-OS/2 exploration block, has issued an award in the company's favour.

The company has been successful in obtaining the extension of the CY-OS/2 licence. “The Hon'ble tribunal award provides for the CY-OS/2 joint venture to undertake appraisal activities on the CY-OS/2 block, in accordance with the governing production sharing contract, for a further three years from the date on which the block is restored. The Hon'ble tribunal also awarded the joint venture recovery of costs incurred as a result of the arbitration,” the company said in a statement.

CY-OS/2 block, where Hardy holds a 75 per cent participating interest, through its wholly owned subsidiary Hardy Exploration & Production (India) Inc is located in the northern part of the Cauvery Basin immediately offshore from Pondicherry, India and covers approximately 859 sq km. The licence comprises of two retained areas with the Ganesha-1 natural gas discovery located in the northern area, which comprises an area of approximately 300 sq km. Rest 25% interest is held by state owned Gail. 

The natural gas discovery Ganesha-1, announced in January 2007, was drilled to a depth of 4,089 metres, encountering sandstone reservoir in the Campanian. The well flow tested at a peak rate of 10.7 mmscfd. The company published a competent person report, prepared by Gaffney, Cline & Associates, dated March 2011, which estimates 2C Contingent Resources of approximately 130 BCF.

The company will now now recommence work on the appraisal of the natural gas discovery Ganesha-1.