Main market stock..incredible graph, good transition from Aim to Main market..better keep an eye on this one, not in yet but : possibly a good Isa stock for the long term.

Krishna Godavari Basin well abandoned, says Hardy


The second exploratory well on Hardy Oil and Gas's exploration licence in the Krishna Godavari Basin on the east coast of India has been plugged and abandoned.

The KG-D9-B3 well was drilled to a total depth of 3,829m MDRT by the Transocean drillship 'Discoverer India' in a water depth of 2,948m at a location some 47 km away from the nearest well.

The well encountered two Tertiary aged reservoir quality sand packages of 70m and 40m gross thickness respectively, in which gas shows ranging from 6% to 9% were recorded.

Testing was carried out with the MDT tool which suggests water gradient in the sand packages.

Hardy holds a 10% participating interest in the licence which is operated by Reliance Industries.

Hardy CEO Yogeshwar Sharma said: "Although this exploration well result is disappointing, the presence of thick reservoir quality sands and the potential presence of a petroleum system are encouraging.

"We will now work with our partner to incorporate the data gathered to update the geological model."

Very sharp drop happening here.

Hardy Oil and Gas plc
("Hardy", the "Company" or the "Group")

Half Year Results for six months ended 30 June 2012

Hardy Oil and Gas plc (LSE: HDY), the oil and gas exploration and production company focused in India, reports its Half Year Results for the six months ended 30 June 2012.

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

SUMMARY

Operational
· D3 - Submitted a revised Declaration of Commerciality proposal for the Dhirubhai 39 and 41 natural gas discoveries
· D3 - Awarded a PSDM processing contract for 3D data covering the eastern area of the block
· PY-3 - Remained shut-in pending partner consensus on the field's facility requirement and the subsequent approval of a redevelopment plan
· D9 - Relinquished the block due to poor hydrocarbon potential of the block

Financial
· No revenue due to the shut-in of the PY-3 oil field (H1 2011: $7.4 million)
· Capital expenditures amounted to $1.2 million, principally on the payment to Government of India for the unfinished work programme for the block D9 (H1 2011: $4.3 million)
· Total loss amounted to $7.2 million (H1 2011: loss of $1.1 million)
· Cash outflow from operations (before changes in non-cash working capital) $4.4 million (H1 2011: inflow $2.5 million)
· Cash and short-term investments at 30 June 2012 amounted to $30.9 million; the Company has no long-term debt

Corporate
· Initiated comprehensive review of the Company's assets, strategy and resources. Relocating corporate office to Aberdeen
· Cost rationalisation exercise undertaken resulting in a reduction in annual overhead costs of approximately $1.0 million
· In January 2012 the Company announced the appointment of Alasdair Locke as Non-Executive Chairman
· In March 2012 the Company announced the appointment of Ian MacKenzie as Chief Executive Officer and Peter Milne as a Non-Executive Director. Yogeshwar Sharma remains on the Board as a Non-Executive Director


Outlook
· D3 - Carry out geological and geophysical studies and plan to drill the fifth exploration well in the first half of 2013
· GS-01 - Work with the operator to submit a development plan before the end of 2012
· PY-3 - Achieve consensus among partners for the field's facility requirement and submit a redevelopment plan for approval
· CY-OS/2 - Completion of the dispute resolution process expected by the end of 2012

Commenting on the Interim Results, Alasdair Locke, Chairman of Hardy, said:

"We continue to review our assets and consider new opportunities. Given our cash resources of $30.9 million and asset base, we are well placed to ensure we build shareholder value."

StockMarketWire.com
Operating losses at India-focused Hardy Oil and Gas rose to $26.4m in the year to the end of March -up from $5.4m last time.

The group reports unsuccessful exploration costs of $22.6m for the year compared with nil in 2014.

Revenue was nil - unchanged from last time.

The pre-tax loss rose to $26.2m - up from $5.4m in 2014.

Chairman Alasdair Locke said: "We have clear deliverables for each asset and management are fully accountable for the implementation of the agreed plans. Should the status quo in India remain and tangible progress not be made in a reasonable time-frame we will re-evaluate our current India focus.

"The board and management have the benefit of significant experience of other oil and gas provinces worldwide. The group remains in a strong financial position from which to either fund its planned work activity for the Indian asset portfolio or to implement a change of geographical focus."

StockMarketWire.com
India-focused Hardy Oil and Gas posts a total comprehensive loss of $16.7 million for the 12 months ended 31 March compared with a loss of $25.0 million last time.

The latest loss is attributable to the write-down of intangible assets - exploration associated with GS-01 ($5.0 million), property plant and equipment associated with the PY-3 oil field ($2.8 million) and associated deferred tax asset ($5.2 million).

In FY15 the loss was primarily attributed to a $22.6 million write-down of intangible assets - exploration due to the relinquishment of the D3 exploration licence.

During the year the company took further steps to reduce our administrative expenditure, including the reduction of staff, although total general and administrative expenditure increased to $4.0 million. The increase is primarily due to non-recurring expenditures amounting to $1.6 million. The Group expects administrative expenses for FY17 to remain at around this level due to legal expenditures of approximately $1.0 million. Cash used in operating activities amounted to $3.7 million for the 12 months ended 31 March 2016 compared to a cash outflow of $3.5 million for the 12 months ended 31 March 2015. The Group's capital expenditure and investment income was nominal at $0.3 million. With cash and short-term investments of $17.6 million as at 31 March 2016, and no debt, the Group is well funded to meet its current work commitments on the Indian asset portfolio.

Chairman Alasdair Locke said: "Our main objectives remain to secure key stakeholders' approvals and initiate activity that will take us closer to realising production from our portfolio of assets for the benefit of our shareholders. The enforcement of the CY-OS/2 Award would present new resources to expand our portfolio. Through the down cycle in commodity prices we can achieve tangible value creation provided we have the constructive collaboration of all stakeholders of our India based assets. The actions of our joint arrangement partners and sovereign authorities will shape our future in India."