Hyperdynamics Announces Agreement to Sell a 40% Interest in Guinea Concession

Hyperdynamics Announces Agreement to Sell a 40% Interest in Guinea Concession

PR Newswire

HOUSTON, Nov. 20, 2012

HOUSTON, Nov. 20, 2012 /PRNewswire/ --Hyperdynamics Corporation (NYSE: HDY)
today announced that its wholly owned subsidiary, SCS Corporation Ltd, has
entered into an agreement with Tullow Guinea Ltd., a subsidiary of Tullow Oil
plc, for the sale of a 40% gross interest in Hyperdynamics' oil and gas
exploration concession offshore Guinea and the transfer of operatorship to
Tullow. Subject to the completion of due diligence, the sale is expected to
close by year-end following the satisfaction of certain closing conditions and
approval of the assignment by Guinea's Ministry of Mines and Geology.

At closing, the interests of SCS, Tullow and Dana Petroleum E&P Limited in the
concession will be 37%, 40% and 23%, respectively.

The parties intend to commence drilling a well to test a deepwater fan
prospect in the concession no later than April 1, 2014. According to the
terms of the agreement, Tullow will reimburse SCS in respect of its past costs
in the amount of $27 million cash at closing and will carry SCS' participating
interests share of future expenses up to a gross expenditure cap of US$100
million, from the date of entry into the next exploration period until 90 days
after the drilling of the well. Tullow will also carry SCS's share of costs
associated with an appraisal well of the initial exploration well, if drilled,
subject to an additional gross expenditure cap of $100 million.

"We are delighted to have reached this agreement with Tullow," said Ray
Leonard, Hyperdynamics President and Chief Executive Officer. "Tullow
fulfills all the requirements we were looking for: expertise and exploration
success in the Atlantic Margin off West Africa – particularly the Transform
Margin play that is present on the Guinea acreage – along with experience in
deepwater production, the financial strength needed to explore this large
block and availability of a suitable rig to initiate the deepwater drilling.
Our decision to choose Tullow was made in consultation with the Guinea
Ministry of Mines and Geology.

"We believe this agreement with Tullow enhances the future of Hyperdynamics'
Guinea exploration program and represents the best opportunity for us to
realize maximum potential value for our shareholders as we explore the
potential of this large and prospective petroleum basin," Leonard said.

BofA Merrill Lynch, acting as financial advisor, assisted Hyperdynamics in
connection with the sale.

About Hyperdynamics
Hyperdynamics is an emerging independent oil and gas exploration and
production company that is exploring for oil and gas offshore the Republic of
Guinea in West Africa. To find out more, visit our website at

Contacts: DRG&L
          Ken Dennard, Managing Partner
          Jack Lascar, Partner
          (713) 529-6600
          Anne Pearson, Sr. Vice President
          (210) 408-6321

SOURCE Hyperdynamics

Website: http://www.hyperdynamics.com
Press spacebar to pause and continue. Press esc to stop.