HyperDynamics: Republic of Guinea Oil & Gas Tied to Major Delta Formations; Advanced Seismic Work Program Identifies World Class Features
BUSINESS WIRE - August 21, 2003 09:30
HOUSTON, Aug 21, 2003 (BUSINESS WIRE) -- HyperDynamics Corp., (OTCBB:HYPD), today announced that its wholly owned subsidiary, SCS Corporation, has isolated four tiers of fault blocks 150 kilometers offshore from the coast of Guinea. The blocks are at the edge of a large delta and confirm the presence of many major oil and gas prospects.
Neil Moore, President of SCS, stated, "The fault blocks were visualized using satellite images. The correlating seismic ties to prospective zones that are up to 500 feet thick. Each of the fault tiers covers more than 25 square miles." Moore also said, "These sites are now being considered for high density 3D seismic operations. At depths of 16,000 feet and assuming typical porosities, each block can hold up to 70 trillion cubic feet of gas. The northwest continental shelf of Guinea is now defined as a complex Delta with many prospects."
Robert Bearnth, Vice President for SCS, explained, "Our extensive work program consists of acquiring, reviewing, processing, reprocessing, interpreting and reinterpreting over 16,000 kilometers of seismic data. This work program will enhance and verify the world class features we have seen to date." He further remarked, "One oil company that has reviewed our data saw hundreds of prospects."
In light of these recent developments Kent Watts, Chairman and CEO of HyperDynamics, stated, "The prospect of world class natural gas deposits bodes strong for our company in the light of Alan Greenspan's recent testimony before the U.S. Congress." Mr. Greenspan, Chairman of the Federal Reserve, recently declared, "Today's tight natural gas markets have been a long time in coming, and futures prices suggest that we are not apt to return to earlier periods of relative abundance and low prices anytime soon." Watts went on to say that, "We feel that Guinea is creating the best environment in the world for exploration and production of hydrocarbons and West Africa is one of the hottest exploration frontiers anywhere. We are honored and privileged to have the faith and support of the Republic of Guinea." According to Offshore Magazine's May 2003 article titled, West Africa Major Focus of Future E&P Spending, "Global E&P (exploration and production) expenditures are expected to top $130 billion in 2003. West Africa's vast deepwater frontiers will receive a fair portion of those dollars in the form of exploratory drilling." Exploration in West Africa is currently being conducted by Woodside Petroleum (AMEX:WPL), Amerada Hess (NYSE:AHC), Marathon Oil (NYSE:MRO), Canadian Natural Resources (NYSE:CNQ), Shell (NYSE: RD & SC), ExxonMobil (NYSE:EOM), Kerr-McGee (NYSE:KMG), Vanco Energy, Premier Oil and Dana Petroleum (London:DNX.L), among others.
When asked about his quote regarding the company's stock being undervalued back in June, Mr. Watts stated, "Given the current market valuations of similar companies to ours, I believe we are still significantly undervalued with a current market cap of approximately $37MM. For example, Environmental Remediation Holding Corporation (OTCBB:ERHC) is selling at a $115MM market cap and has tremendous upside potential. Far East Energy Corp. (OTCBB:FEEC), a company that acquires, explores and develops natural gas and coal bed methane gas in the Far East, is at $105MM market cap and has shown and is continuing to show a very strong stock appreciation. Oil and gas companies are showing positive trends in the market place as evidenced also by Heartland Oil and Gas Corp. (OTCBB:HOGC). Heartland is showing a remarkable track record. As we move forward, we expect the market to more clearly understand our real potential and give us much better valuations." |
