Hyperdynamics Announces Agreement to Sell a 40%
Interest in Guinea Concession (DJ)
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. |
