Hardy Oil and Gas to dispose its wholly-owned Nigerian business

Hardy Oil and Gas has entered into a conditional agreement for the disposal of its wholly-owned Nigerian business. The disposal is being undertaken by way of the sale of Hardy’s entire investment in Hardy Oil (Africa) Limited for $4,550,001 to Inergia Petroleum Ltd, a newly-incorporated upstream energy company focused on Nigeria.

HOA’s wholly-owned subsidiary, Hardy Oil Nigeria Ltd, has a 20% interest in each of the Oza and Atala marginal fields in Nigeria. The Oza field is located on-land in the north-western part of OML 11, near Port Harcourt, with three suspended wells in the field and a concession area of 20 sq km.

The Atala field is located within OML 46, which is situated within a mangrove swamp on the Dodo River, a coastal area of Bayelsa State with a concession area of 34 sq km. HON has a project office located in Lagos Nigeria with 11 employees most of whom are anticipated to remain with the Nigerian operations. During 2009, HOA incurred a loss of $0.74m (2008: $0.50m) principally resulting from ongoing general and administrative and financing charges. HOA’s gross assets at the end of 2009 were approximately $4.4m (2008: $4.2m).