Oil & Gas Corporate News
Hardy Oil & Gas (BUY, £3.00) (HDY, 212.5p, ? (1.16%)) reported its Interim results for the six months ended 30 June 2010. Revenue of US$5.5m compared with US$5.8m in H1 2009 and Cash flow from operating activities (before changes in non-cash working capital) were US$0.3m versus a negative US$2.6m in H1 2009. The Company recorded a net loss of US$1.3m versus a net loss US$4.3m in H1 2009. Capital expenditure of US$2.3m was spent on partial drilling of the KGV-D3-W1 well and processing of acquired 3D seismic data. Cash and short term investments at 30 June 2010 amounted to US$26.6m; the Company has no long term debt. During the period the PY-3 field recommenced production on 24 January 2010 at a rate of 3,336 b/d. Gross daily production in the first half of 2010 averaged 2,953 b/d versus 3,016 b/d in H1 2009, or a net of 532 b/d versus 543 b/d in H1 2009. Average gross daily production for the month of July 2010 was 3,441 b/d. The drilling of the KGV-D3-W1 exploration well in Block D3 resumed on 10 August 2010. The well was previously suspended due to mechanical issues with the BOP of the drilling ship. A proposal for declaration of commerciality of the GS-01 Dhirubhai 33 natural gas discovery was submitted to DGH. In CY-OS/2, the Company initiated a formal dispute resolution process in accordance with the PSC to extend the date of this licence to January 2012. The Government of India granted a three year drilling moratorium on all deepwater blocks including D3 and D9. On the corporate side Yogeshwar Sharma assumed the role of Chief Executive Officer effective 1 April 2010. Sastry Karra became a non-executive Director. Appointment of William Satterfield as Technical Director of HEPI (wholly owned subsidiary). A CPR and an independent assessment report providing an update to the Company's reserves and resources estimates in India and Nigeria was published. The Company intends to complete drilling of KGV-D3-W1 exploration well, while planning of further exploration drilling is underway. It continues the geological and engineering appraisal evaluation of the D3 - Dhirubhai 39 and 41 Plio-Pleistocene gas discoveries. The drilling of the second exploration well on D9 is expected in the second half of 2010. The gross daily production from PY-3 is projected to average 3,100 b/d in 2010.
Comment: Encouraging results demonstrating progress on a number…
