Operational Update

For immediate release 3 August 2011

Hardy Oil and Gas plc

("Hardy" or "the Company")

Operational Update

Hardy Oil and Gas plc (LSE: HDY), the oil and gas exploration and production company focused in India, announces that on 30 July 2011 the PY-3 field was shut-in.

The PY-3 oil field has been temporarily shut-in pending Management Committee approval of the award of a contract for the field's floating production system (FPS). We are working closely with all stake-holders to secure the necessary approvals and recommence production as soon as possible.

Hardy is the operator of the PY-3 field and holds an 18 per cent participating interest.

For further information please contact:

GLOSSARY:

FPS Floating production system

Management Committee As per India PSCs the Management Committee comprises representatives of each participating interest holder, DGH and the Ministry of Petroleum and Natural Gas of India

PY-3 India petroleum production licence CY-OS-90/1

NOTES TO THE EDITORS

Hardy Oil and Gas plc is an upstream oil and gas company focused in India. Its portfolio includes a blend of exploration, appraisal, and production assets. Hardy's goal is to evaluate and exploit its asset base with a view to creating significant value for its shareholders.

Hardy has existing production from an offshore field in India's Cauvery basin. Hardy also has interests in four offshore exploration blocks in India's Saurashtra, Cauvery, and Krishna Godavari basins, and one onshore exploration block in the Assam Basin. The Company's Indian assets are held through its wholly owned subsidiary, Hardy Exploration & Production (India) Inc, based in Chennai, India.

Hardy is incorporated under the laws of the Isle of Man and headquartered in London, UK. Ordinary shares of Hardy were admitted to the Official List and the London Stock Exchange's market for listed securities effective 20 February 2008 under the symbol HDY.

For further information please refer to our website at www.hardyoil.com