Completion of Placing

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

For immediate release 22 December 2010

Hardy Oil and Gas plc

Completion of Placing of 3,370,000 new Ordinary Shares at 201 pence per Ordinary Share

Hardy Oil and Gas plc ("Hardy" or the "Company") is pleased to announce that, further to the announcement made earlier today (the "Placing Announcement"), it has placed 3,370,000 new Ordinary Shares with institutional investors, at a price of 201 pence per Ordinary Share to raise gross proceeds of approximately £6.8 million, and that the Placing is accordingly closed.

The Placing Price represents a discount of 5.6 per cent. to the closing middle market price of 213 pence per Ordinary Share on 21 December 2010, being the last trading day before this announcement.

The Placing, which was fully underwritten by Arden Partners, is conditional upon Admission, which is scheduled to take place on 30 December 2010.

Highlights

·; Gross placing proceeds of approximately £6.8 million

·; Placing Price of 201 pence per Ordinary Share

·; Placing fully underwritten by Arden Partners

·; Net proceeds will be added to the Company's working capital to be used for the Company's ongoing capital programme on its oil and gas assets in India.

Mr Yogeshwar Sharma Chief Executive Officer of Hardy, commented:

"We are delighted to have completed this fundraising. The strong support from institutional investors endorses our view of the quality of our assets and the prospects for our high impact drilling programme over the next 12 months and beyond. The additional funds will strengthen our balance sheet as we enter this busy period of drilling activity and detailed engineering and commerciality studies."

Immediately following Admission the total issued share capital of the Company will be 71,922,533 Ordinary Shares, each with equal voting rights.

Words and expressions defined in the Placing Announcement shall have the same meanings in this announcement.

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