HOEC - Updates

• Security Code: 500186
• Company: HINDOILEXP

With reference to the earlier announcement dated February 18, 2008, Hindustan Oil Exploration Company Ltd (HOEC) has informed BSE that the Company has, as the
Operator of PY-1 Field, executed the following agreements:

- A Tripartite Settlement Agreement with GAIL India Ltd ("GAIL") and PPN Power Generating Company Pvt Ltd ("PPN") inter-alia terminating the Natural Gas Sale and Purchase Agreement with PPN and settling the ongoing dispute with GAIL in relation to sale of natural gas from PY-1 Field including

a. the withdrawal of the petition filed by the Company before the Hon'ble High Court of Delhi for setting aside the arbitral award dated February 15, 2008;

b. the withdrawal of the petition tiled by GAIL before the Hon'ble High Court of Delhi for interim injunction; and

- A Gas Sale Contract with GAIL for sale of natural gas produced from PY-1 Field.

The Company expect PY-1 Field to generate annual revenue in excess of USD 65 million upon reaching first plateau production.

The Company has 100% operated participating interest in PY-1 Field.