Shares in Hardy Oil and Gas (LSE: HDY) plummeted over 35% after the India focused oil and gas exploration and production company hit a dry well in an attempt to explore the Middle and Lower Miocene target levels at the D9 block in the Krishna Godavari basin in India.
The exploratory well KGD-A1, which was drilled to a total depth of 4,875 metres, will now be plugged and abandoned after encountering poor reservoir sands in both the Middle and Lower Miocene targets levels. The company will now integrate the data from the well with the existing geological model to improve the prospectivity of the block before drilling subsequent wells.
Hardy holds a 10% interest in the D9 block, while its operator Reliance Industries Limited holds the remaining 90%. The company raised £10.8 million through a placing in April to fund its activities in the D3 and D9 areas of the Krishna Godavari basin.