Hyperdynamics Announces Updated Prospective Oil Resource Evaluation
HOUSTON, Feb. 14, 2013 /PRNewswire/ -- Hyperdynamics Corporation ( HDY) today announced the completion of an updated oil resource evaluation study of the oil and gas concession offshore Republic of Guinea conducted by Netherland, Sewell & Associates, Inc. ("NSAI"), a leading provider of reserve audits and exploration resource assessments. A summary of the gross prospective resource potential of each of 21 prospects and leads is found in the report. The complete NSAI report is available on the Company's website at www.hyperdynamics.com.
"We find the update and assessment by NSAI encouraging and continue to see multiple prospects and play types in the concession," said Hyperdynamics' President and CEO Ray Leonard. "We look forward to working with Tullow Oil as they apply their successful exploration experience on the Atlantic Margin to the evaluation of the prospects on the block."
NSAI conducted an assessment of the prospective oil resources of selected prospects on the concession following analysis of the Sabu-1 well in 2012 as well as the preliminary review of the 4,000-square-kilometer 3-D seismic survey covering deep water areas in the southwestern portion of its concession. This report supersedes earlier studies completed prior to the acquisition of this new well and seismic data.
"Prospective Oil Resources" referred to in NSAI's report are quantities of petroleum that are estimated to be potentially recoverable from undiscovered accumulations through future development projects. The prospective oil resources included in this latest NSAI report indicate exploration opportunities and development potential in the event that a discovery is made and should not be construed as reserves or contingent resources. The NSAI prospective oil resource estimates are provided because management believes they are useful information to investors in the valuation and analysis of the Company.
Hyperdynamics, through its wholly owned subsidiary, SCS Corporation Ltd., owns a 37 percent participating interest in the concession, with 40 percent held by Tullow Guinea Ltd., and the remaining 23 percent held by Dana Petroleum, a wholly owned subsidiary of the Korean National Oil Company. Following a transition period, Tullow Guinea Ltd. will become the Operator of the concession in April 2013.
Cautionary Note to Investors Concerning Prospective Resources
This news release uses the term "prospective resources." Hyperdynamics advises investors that the U. S. Securities and Exchange Commission ("SEC") does not recognize this term, and the SEC permits oil and gas companies, in their filings, to disclose only "reserves." In addition, prospective resources have a great amount of uncertainty as to their existence and economic and legal feasibility. Investors are cautioned not to assume that estimates of prospective resources are economically drillable, or will ever be upgraded into reserves. |
