Hyperdynamics to Sell 40% Interest in Guinea Oil and Gas Exploration Concession
Hyperdynamics (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.