Hardy Oil and Gas plc, the UK-based oil and gas exploration and production company with interests predominantly in India, has abandoned an exploratory well in a Krishna Godavari (KG) basin block, where Reliance Industries is a majority partner, owing to poor gas find. However, RIL said it would continue the drilling operations in the block. “The exploratory well KGD-A1 drilled to a total depth of 4,875 m TVDRT (4,861 m subsea) to explore the middle and lower Miocene targets, will be plugged and abandoned,” it said. Following the development, Reliance shares fell by 4 per cent to Rs 2047.30 on the BSE.

“There is a commitment to drill three more wells in this block. RIL remains committed to pursuing the exploration campaign within this block and will incorporate data and information from this well to upgrade the prospect inventory for drilling of three more wells. Any rumour of RIL surrendering this block is completely baseless and unsubstantiated,” RIL said. Hardy, through its wholly owned subsidiary Hardy Exploration & Production (India) Inc, holds a 10 per cent participating interest in the D9 block which is located in the Krishna Godavari basin on the east coast of India covering an area of approximately 11,605 square km. Reliance Industries is the operator and holds a 90 per cent participating interest in the block.

While encountering some background gas while drilling, the well encountered poor reservoir sands in both the middle and lower Miocene target levels, the UK firm said.