Hardy Oil and Gas poised to serve Indian energy market

India-focused Hardy Oil and Gas has unveiled its preliminary results for the year ended December 31st, showing cash used from continuing operations before movements in working capital of 6.8m dollars.

Cash and short-term investments at December 31st amounted to $29.1m compared to $36.5m in 2011 and the company reported that it had no debt.

No revenue was realised in 2012 compared to $11.3m in 2011 and the group said that in July 2011 the PY-3 field was shut-in.

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The company reported that it had submitted a revised declaration of commerciality proposal for the Dhirubhai 39 and 41 natural gas discoveries in Block D3.

The group completed the pre-staked depth migration (PSDM) processing of 3D data covering the eastern area of Block D3 and submitted a field development plan for the Dhirubhai 33 natural gas discovery in Block GS-01.

On Block PY-3, partner consensus was secured on the field's facility technical specifications and continued work towards the submission of a full field development plan.

Alasdair Locke, Chairman of Hardy Oil and Gas, said that the company remains in a strong working capital position from which to fund its planned work activity.

"In 2013, our primary objectives will be to build on the current momentum by securing key stakeholder's approvals and initiating activity to take us closer to realising production from our D3, PY-3 and GS-01 blocks.

"We have clear deliverables for each asset in 2013 and management are fully accountable for the implementation of agreed plans.

"Energy demand in India is growing at an exceptional rate and there are indications that a more collaborative environment is taking hold in India. We believe that these external factors should complement our efforts."

India's demand for natural gas is expected to grow by about 19 per cent per annum from 2013 to 2017 to meet the incremental requirement of the power, fertiliser and other industries.

Hardy's share price was up 1.74% to 117p at 13:54 on Thursday.

MF