>RELIANCE INDUSTRIES LIMITED (JP MORGAN)

KG D3, D9 - Hardy Update - ALERT

• Technical Evaluation report from GCA: Hardy Oil (10% stake holder in KG D3 and D9) released a technical evaluation report by Gaffney, Cline & Associates (GCA) on resource estimates for KG D3 and D9 blocks. Risked resource data on both blocks indicate increase in resource estimates and higher Geological Chance of Success (GCoS) indicating higher probability of a prospect's drilling leading to a discovery.

• KG D3: GCA’s resource estimation based on identified prospects and leads for KG D3 block is 5.5TCF (unrisked) and 2.5 TCF (risked) with a 45% GCoS (chance of success), higher than 15-25% GCoS indicated earlier (GCA estimate May 2007). Additionally, GCA conducted a playbased exploration methodology estimate for resources to address both the current prospect inventory and the “yet to find” resource potential, the study indicates 9.5TCF of risked prospects.

• KG D9: Risked resource estimate for KG D9 is 10.8TCF, with unrisked resource estimate of 54TCF, up from 45TCF declared earlier (GCA estimate May07), leading to a 22% increase in unrisked prospects. Also, the GCoS (chance of success) has increased to 20% from 15% earlier.

• Drilling in 2HCY09 and CY10: For KG D3 (where two gas discoveries have been made), 2D data acquisition would be done till 1H09 with 4 exploration wells planned to be drilled in CY10, and for KG D9, exploratory drilling is planned in 1H09.

• Positive data point: The GCA ratification of high prospectivity in other blocks is positive for sustainability of RIL’s E&P business and valuation.

To see full report: RIL