Hyperdynamics Finalizes Sale of Minority Interest in Guinea Project to Dana Petroleum
January 29 2010 - 5:00AM
PR Newswire (US)
SUGAR LAND, Texas, Jan. 29 /PRNewswire-FirstCall/ -- Hyperdynamics
Corporation (NYSE Amex: HDY) today announced that it has finalized
the sale of a minority interest in its oil and gas concession
offshore the Republic of Guinea (Northwest Africa) to Dana
Petroleum plc (LSE:DNX). Hyperdynamics and Dana signed an
Assignment and a Joint Operating Agreement under which the
U.K.-based company acquired a 23 percent participating interest in
Hyperdynamics' Production Sharing Contract with the government of
the Republic of Guinea (PSC). The assignment and JOA were made
under the December 2009 purchase agreement between Hyperdynamics
and Dana. According to its terms, Dana is to pay Hyperdynamics
approximately $1.7 million for its pro-rata portion of accrued
expenses associated with the Hyperdynamics' ongoing 2-D seismic
program and bear a similar share of future costs for the program.
The closing follows the approval of the Assignment by Guinea's
Ministry of Mines, Energy and Hydraulics. Hyperdynamics and the
Republic of Guinea are currently undergoing a review of the PSC in
accordance with the September 2009 Memorandum of Understanding.
Upon the conclusion of the review and the effectiveness of any
resulting clarifications and amendments to the PSC, Dana is to pay
Hyperdynamics an additional purchase price of $19.6 million and
assume its proportionate share of costs for all operations. Of that
figure, Dana will pay $5.0 million in cash and the remaining $14.6
million will be paid either in cash or in shares of Dana Petroleum
plc, at Dana's option. Should Dana choose to pay in stock, there
would be no restriction on the immediate resale of these shares by
Hyperdynamics. About Hyperdynamics 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
Northwest Africa. To find out more, visit our website at
http://www.hyperdynamics.com/. Forward Looking Statements This news
release and the Company's website referenced in this news release
contain forward looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, regarding
Hyperdynamics Corporation's future plans and expected performance
that are based on assumptions the Company believes to be
reasonable. Statements preceded by, followed by or that otherwise
include the words "believes", "expects", "anticipates", "intends",
"projects", "estimates", "plans", "may increase", "may result",
"will result", "may fluctuate" and similar expressions or future or
conditional verbs such as "will", "should", "would", "may" and
"could" are generally forward-looking in nature and not historical
facts. A number of risks and uncertainties could cause actual
results to differ materially from these statements, including
without limitation, funding and exploration efforts, fluctuations
in oil and gas prices and other risk factors described from time to
time in the Company's reports filed with the SEC, including the
Company's Annual Report on Form 10-K for the fiscal year ended June
30, 2009. The Company undertakes no obligation to publicly update
these forward looking statements to reflect events or circumstances
that occur after the issuance of this news release or to reflect
any change in the Company's expectations with respect to these
forward looking statements. HDY-IR Contacts: Dennard Rupp Gray
& Easterly, LLC Ken Dennard, Managing Partner Jack Lascar,
Partner (713) 529-6600 Anne Pearson, Sr. Vice President (210)
408-6321 DATASOURCE: Hyperdynamics Corporation CONTACT: Ken
Dennard, Managing Partner, or Jack Lascar, Partner,
+1-713-529-6600, or Anne Pearson, Sr. Vice President,
+1-210-408-6321, all of Dennard Rupp Gray & Easterly, LLC, for
Hyperdynamics Corporation Web Site: http://www.hyperdynamics.com/
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