Hyperdynamics Completes Sale of 40% Interest in Guinea Concession to Tullow
HOUSTON, Dec. 31, 2012
HOUSTON, Dec. 31, 2012 /PRNewswire/ --Hyperdynamics Corporation (NYSE: HDY)
today announced that its wholly owned subsidiary, SCS Corporation Ltd, has
completed the previously announced sale of a 40% gross interest in the
Company's oil and gas exploration concession offshore Guinea to Tullow Guinea
Ltd., a subsidiary of U.K.-based Tullow Oil plc.
Guinea's Ministry of Mines and Geology formally approved the sale by issuing
an Arrete on December 27, the transaction closed today, and Tullow has
transferred the $27 million cash payment to SCS. Tullow will also carry SCS'
participating interest share of future expenses, up to a gross expenditure cap
of $100 million, from the date of entry into the next exploration period until
90 days after the drilling of the well.
The parties intend to begin drilling a well to test a deepwater fan prospect
in the concession before April 1, 2014. Tullow will also carry SCS' 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 close this transaction with Tullow and to be able to
obtain funding for the next critical phase of our exploration program offshore
Guinea," said Ray Leonard, Hyperdynamics President and Chief Executive
Officer. "Tullow has an excellent exploration track record in West Africa,
particularly along the Transform Margin trend, as is found on the Guinea
concession. We look forward to working closely with them in the coming months
as we transfer operatorship to Tullow and initiate preparations for drilling
the next well."
The interests of SCS, Tullow and Dana Petroleum E&P Limited in the concession
are now 37%, 40% and 23%, respectively.
BofA Merrill Lynch, acting as financial advisor, assisted Hyperdynamics in
connection with the sale.
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
Ken Dennard, Managing Partner
Jack Lascar, Partner
Anne Pearson, Sr. Vice President
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