Tullow Oil PLC (TLW) - Farm-in to Guinea Concession
RNS Number : 5818R
Tullow Oil PLC
20 November 2012
Tullow Oil Agrees Farm-in to Guinea Concession
20 November 2012 - Hyperdynamics Corporation today issued the following press
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.
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:
This information is provided by RNS
The company news service from the London Stock Exchange
MSCBKKDNBBDDNDB -0- Nov/20/2012 12:38 GMT
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