Tullow Oil PLC TLW Farm-in to Guinea Concession

  Tullow Oil PLC (TLW) - Farm-in to Guinea Concession

RNS Number : 5818R
Tullow Oil PLC
20 November 2012




News Release



                Tullow Oil Agrees Farm-in to Guinea Concession

20 November 2012 - Hyperdynamics Corporation today issued the following  press 
release:

HOUSTON, November  20,  2012 -  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.

END

FOR FURTHER INFORMATION CONTACT:

Tullow Oil plc                    Citigate Dewe Rogerson Murray Consultants
(+44 20 3249 9000)                (+44 207 638 9571)     (+353 1 498 0300)
Chris Perry (Investor Relations)  Martin Jackson         Joe Murray

James Arnold (Investor Relations) Jack Rich              Ed Micheau

George Cazenove (Media Relations)



Tullow Group Overview

Tullow is a leading independent oil  & gas, exploration and production  group, 
quoted on the London, Irish and Ghanaian (symbol: TLW) stock exchanges and  is 
a constituent of  the FTSE  100 Index.  The Group  has interests  in over  100 
exploration and production licences  across 24 countries  and focuses on  four 
core areas: Africa, Europe, South Asia and South America.

For further information please refer to our website at www.tullowoil.com.

Follow Tullow on:

Twitter: www.twitter.com/TullowOilplc

YouTube: www.youtube.com/TullowOilplc

Facebook: www.facebook.com/TullowOilplc

LinkedIn:www.linkedin.com/company/Tullow-Oil

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCBKKDNBBDDNDB -0- Nov/20/2012 12:38 GMT
 
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