Hardy Oil to abandon 1 well in KG D9 block; RIL stock down

Hardy Oil to abandon 1 well in KG D9 block; RIL stock down

UK-based Hardy Oil and Gas, which has 10% stake in Krishna-Godavari D9 block on the east coast of India, will abandon exploration of one well. The Hardy Oil stock was down 36% on the London Stock Exchange on the announcement.

India’s Reliance Industries (RIL), the field's operator, holds 90% in KG D9. RIL’s stock was seen under pressure after the news came out and was down about 4% on the National Stock Exchange at 14.35.

In response, RIL said it would comment only after informing the Directorate General of Hydrocarbons (DGH), the government body that overlooks the management of oil and natural gas resources in India.

The DGH in June had complained to market regulator Securities and Exchange Board of India (SEBI) when Hardy had “prematurely” announced its assessment of reserves in the KG blocks.

Market Watch: Sensex trips on profit booking; RIL, L&T weigh

RPT-UPDATE 1-Reliance shares hit as partner says to abandon well ...

Reliance down as Hardy Oil abandons well in KG D9 block

Reliance down as Hardy Oil abandons well in KG D9 block

India Infoline News Service / 02:26 PM , Oct 23, 2009

Hardy holds a 10% stake in the D9 block while, Reliance Industries is the operator, with a 90% stake.

Shares of Reliance Industries have declined by over 4% to Rs2064 after Hardy Oil & Gas Plc reportedly plans to abandon a well in the KG-basin that showed “poor” reservoir sands. Hardy Oil and Gas plc, announced the results of the drilling of the first of a four well programme on the Company's D9 (KG-DWN-2001/1) exploration license. 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 firstexploration 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 licence provides for the drilling of a further three exploration wells in the block. Hardy holds a 10% stake in the D9 block while, Reliance Industries is the operator, with a 90% stake. Shares of Hardy Oil in the UK were slam-dunked by over 36% in a single trading session.

Src: All Leading Websites...