Hardy Oil & Gas Receives Higher Bid for Troubled Indian Unit

Hardy Oil & Gas PLC said Monday it has received a higher offer for Indian unit Hardy Exploration & Production. Hardy Oil & Gas agreed to sell the unit for USD1.5 million to Hindustan Oil Exploration Co Ltd on July 1. However, on Monday Hardy said it received an offer of USD3.0 million from Invenire Energy Private Ltd.

The exploration and production company said Hardy Exploration & Production is its wholly-owned subsidiary and is incorporated in the US State of Delaware. It holds interests in three oil & gas block assets located in India. Hardy said it has faced "significant" challenges in respect of these assets, including protracted litigation with the government of India and disputes with partners. These challenges have been ongoing for an "extended" period of time and have resulted in Hardy being unable to operate or commercialise these assets, it said.

If approved by shareholders, the transaction will result in Hardy becoming a cash shell. Following completion, Hardy said it will transfer its listing from the premium segment to the standard segment and the net proceeds from the sale will be retained to provide additional working capital for the company and will be added to its cash resources to seek new investment opportunities.

"The board unanimously considers that the Invenire sale is in the best interests of all shareholders. Not only will it reduce significantly the outgoings associated with HEPI remaining part of the group but the price secured by the board is at a substantially higher price than that offered by Hindustan Oil Exploration," said Chair Alasdair Locke.

Locke added: "The Invenire sale will remove a major element of uncertainty for investors and provide the company with a significant increase in the amount of its working capital enabling the company to seek new investment opportunities." Shares in Hardy Oil & Gas closed flat in London on Monday at 3.40 pence each.