Indian oil group set for London float

Hardy Oil and Gas is set to become the first Indian oil and gas company to list in London when it floats on the Alternative Investment Market later this week, the Sunday Telegraph reported today.

The company hopes to raise 15 million pounds, which would give it a market value of about 75 million pounds. Formed as Jehan Energy in 1997 by its Indian management team, the company changed its name to Hardy Oil and Gas after it acquired the Indian subsidiary of British Borneo, the UK exploration minnow bought by Italy's ENI, in 1999.

Hardy is already profitable, but needs additional cash to help fund its exploration and development programme. It has one field in production in India and interests in three exploration licences.

The company's potentially most valuable asset is its 10 per cent interest in a field in the Bay of Bengal. The field, operated by Reliance, the Indian conglomerate, is adjacent to one of the largest gas discoveries in recent years. Exploration drilling is expected to start next year.

UK institutional investors have become increasingly interested in Indian oil and gas assets in recent months after the extraordinary exploration success of Cairn Energy, the 1.97 billion pounds listed group, in Rajasthan.