Hardy Oil and Gas provides half-year report
Friday, Nov 24, 2017
Hardy Oil and Gas plc (LSE: HDY), the oil and gas exploration and production company focused on India, reports its results for the six months ended 30 September 2017.

All financial amounts are stated in US dollars unless otherwise indicated.

SUMMARY

CY-OS/2 - Government of India's (GOI) appeal of the CY-OS/2 international arbitration award, in favour of Hardy (the Award), continued. Legal process to confirm the Award in the US is under consideration by the Washington, DC judiciary. Legal process to enforce the award in the UK was initiated.

PY-3 - Maintained compliance activities while working with the GOI, the regulatory authority - Directorate General of Hydrocarbons (DGH) - and uJV partners to establish a viable development solution to recommence production and optimise reserves. Secured consensus among partners in principle to apply for an extension of the Production Sharing Contract (PSC) beyond December 2019.

GS-01 - Resolution of the quantification of liquidated damages (LD) associated with the unfinished minimum work programme (UMWP) is awaited - GOI's agreement with the uJV's proposed estimate of LD should determine the Company's plans going forward.

Financial - Total Comprehensive loss of $2.0 million for the six months ended 30 September 2017 (H1FY17 $1.2 million) increased due to additional spending on litigation which is expected to continue at a lesser extent through FY18. Cash and short-term investments at 30 September 2017 amounted to $11.9 million; Hardy has no debt.

OUTLOOK

CY-OS/2 - The GOI Supreme Court appeal is expected to continue into 2018. Enforcement of the arbitration award within the India judicial system is our priority. However, we will continue legal process to enforce the Award in the US and the UK.

PY-3 - Secure a consensus amongst uJV partners for a Field development plan. Apply for an extension of the PSC and initiate well monitoring activity.

GS-01 - Resolution of penalties associated with UMWP are expected to continue into 2018. Further capital investment is dependent upon GOI's acceptance of the uJV's LD estimate and GOI's gas pricing policies.

Ian MacKenzie, Chief Executive Officer of Hardy, commented: "Our foremost objective is the enforcement of the CY-OS/2 Award, which will deliver new resources to the Group allowing us to expand our portfolio of upstream oil and gas assets and recommence appraisal of the CY-OS/2 natural gas discovery. The other near-term priority remains the development of a consensus on the way forward for the PY-3 oil field which should take us closer to re-commencing production."

For more information, please visit: http://www.hardyoil.com
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