HOUSTON, Jan. 24 /PRNewswire-FirstCall/ -- Hyperdynamics Corporation today announced that it has formally commenced a farm-out opportunity for its 31,000-square-mile concession offshore West Africa. Numerous exploration companies have already expressed interest and signed confidentiality agreements as a first step in the program. This farm-out opportunity is a key element in Hyperdynamics' strategy to enhance and accelerate its ongoing exploration of offshore Guinea.
"Our contract area is in a region of tremendous interest to international explorationists, and our review of seismic data suggests it has the potential for world-class discoveries," said Kent Watts, Hyperdynamics Chairman and Chief Executive Officer. "With such a vast amount of acreage available to us in the contract area, we'll be able to pursue multiple exploration targets with a number of different partners through this farm-out opportunity."
Ongoing Exploration Plan
The Company is currently securing confidentiality agreements and scheduling presentation meetings with potential partners. Following these meetings -- to be held during the first calendar quarter -- potential partners can purchase a review license allowing them to evaluate Hyperdynamics' geophysical and geological data, which includes approximately 5,000 kilometers of proprietary seismic never before available for independent study. The review period is currently scheduled for the second calendar quarter.
The companies will then be given the opportunity to present farm-in proposals to partner with Hyperdynamics in an exploration program. During the third calendar quarter, the Company would review proposals and negotiate contracts with prospective partners.
Concurrent with the farm-out process, Hyperdynamics also is continuing its efforts in its seismic data acquisition program, which began in 2002. As part of its Production Sharing Contract with the Republic of Guinea, the Company plans to acquire and interpret as much as 18,000 kilometers of additional seismic by late 2008.
In addition to the ongoing geophysical program, a study is nearing completion by a subsidiary of GlobalSantaFe Corporation to identify the logistics needed to support future drilling and production operations. This study will help Hyperdynamics and its partners to plan in advance for all the materials, equipment, transportation and labor that would be needed, both onshore and offshore, in order to be ready to mobilize quickly once the drilling phase begins.
Webcast
Hyperdynamics has scheduled a live webcast for Thursday, January 25, 2007, at 11 a.m. Eastern Standard Time to review this information and the timeline of activities described in this release. To listen to the live webcast on the Internet, please visit the Investors page of the Company's website at http://www.hypd.com/ at least 15 minutes before the webcast begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call.
HDY-IR
About Hyperdynamics
Hyperdynamics Corporation provides energy for the future by exploring and producing sources of energy worldwide. The Company's internationally active oil and gas subsidiary, SCS Corporation, owns rights to explore and exploit significant acreage offshore the Republic of Guinea, West Africa. HYD Resources Corporation focuses on domestic production in proven areas. To find out more about Hyperdynamics Corporation, visit our Website at http://www.hypd.com/.
Forward Looking Statements
Statements in this news release are "forward-looking" as defined by the U.S. Securities and Exchange Commission and are based on expectations, beliefs or projections that are subject to numerous risks and uncertainties. Investors are cautioned that these statements are not guarantees of future performance, and actual results could differ materially. Please refer to "Risk Factors" in the Company's Form 10-K filed with the SEC.
Contacts:
DRG&E
Ken Dennard, Managing Partner
