Oil & Gas Corporate News
Hardy Oil & Gas (BUY, £2.00) (HDY, 155p, ? (2.36%)) provided an operational update and review of 2010. In 2011 Hardy expects that applications for commerciality for the four discoveries to date in block D3 will be submitted to DGH during Q1. The Krishna Godavari Basin is an emerging world-class petroleum province and, together with rapidly improving Indian gas pipeline infrastructure and high demand for gas, the prospects for the economic development of gas resources in this area are good. Four of the six commitment wells have now been drilled on the D3 exploration block. Several material undrilled prospects exist on this block and the timing of drilling the two remaining commitment wells will be determined by the operator of the block. Hardy expects to receive approval of commerciality in respect of the application made for the GS-01 Dhirubhai 33 natural gas discovery, in the near future. The Company believes the PY-3 field, which it operates, has at least another 15MMbbl of recoverable reserves. During 2011, Hardy will seek approval from its partners and the GOI to drill two further producing wells in 2012, and upgrade the production facilities to include gas compression to extend the field life. Following the exploration well result on D9, announced earlier this month, which confirmed a petroleum system and was subsequently plugged and abandoned, Hardy is working with the operator to update plans for this extensive block, which has considerable remaining prospectivity. A revised Competent Person's Report is expected to be published in the first quarter of 2011, as part of the Company's annual update of its reserves and resources. The Company's 2010 preliminary results are anticipated to be announced on 16 March 2011.
Falkland Oil & Gas (BUY, £2.50) (FOGL, 95.75p, ? (1.59%)) provided an exploration update with respect to its licence interests offshore the Falkland Islands and in particular to its 100% owned and operated southern licences. FOGL also holds a 49% interest in licences collectively referred to as the northern licences in which BHP Billiton holds 51% and is operator. The site survey for FOGL's 100% owned southern licences is to commence in H1 2011 and 1,300km of 2D seismic may also be acquired to assist with prospect definition and selection of drilling locations. Negotiations are currently underway with respect to securing a suitable deep-water rig for drilling in FOGL's acreage. Conclusions from the analysis of…
