Hardy Oil & Gas succeeded in obtaining the extension of its exploration licence for the the CY-OS/2 block in Cauvery basin for a further three years from the date on which the block is restored.
Ian MacKenzie, Chief Executive of the firm said as operator of the CY-OS/2 block, the firm was looking forward to recommencing our efforts to appraise the Ganesha-1 natural gas discovery. The firm got the extension through an arbitration proceeding.
Following this, the company would be able to carry out appraisal activities on the block where it had made a gas discovery, named Ganesha.
In 2007, the London-listed firm made the Ganesha discovery. The Ganesha-1 well flow is testing at a rate of 10.7 million cubic feet per day, and is estimated to hold contingent resources of about 130 billion cubic feet.
Earlier, Hardy carried out a formal dispute resolution process to extend the expiry date of the licence. The firm, which holds 75 per cent in the CY-OS/2 licence, said the block joint venture had also been awarded recovery of costs incurred as a result of the arbitration. State gas utility Gail India has the remaining 25 per cent.
The block is located in the northern part of the Cauvery basin immediately offshore from Pondicherry and it covers about 859 sq km. The licence comprises of two retained areas with the Ganesha-1 natural gas discovery located in the northern area, which comprises an area of approximately 300 sq km.