HyperDynamics Corp. (OTCQX: HDYN) is engaged as an oil exploration company around the Republic of Guinea. Shares of the oil exploration company are surging 29%, through early trading on Monday, December 5, 2016. Over the past month, the oil company has seen average daily volume of 36,591 shares. However, nearly 155,175 shares or dollar volume of $361,557, has already exchanged hands through early trading on Monday.
HyperDynamics Corp. is seeing shares catch a bid today, after the company announced it has signed a Letter of Intent with the South Atlantic Petroleum Limited (SAPETRO). Under the agreement, SAPETRO will have a 20% interest in the offshore oil exploration, in exchange for 40% of oil well costs, up to $50 million. Both companies are likely to sign definitive agreements within the next 45 days to finalize the deal. Here is the full press release detailing of the letter of intent agreement:
HyperDynamics Corp. (OTCQX: HDYN) Press Release:
LAGOS, Nigeria, Dec. 5, 2016 /PRNewswire/ — HyperDynamics Corp. (OTCQX: HDYN) today announced it has signed a Letter of Intent (LOI) with South Atlantic Petroleum Limited (SAPETRO) under which the two companies will negotiate the assignment of a participating interest in Hyperdynamics’ oil and gas concession offshore the Republic of Guinea. SAPETRO is a privately held Nigerian oil and gas exploration and production company with a portfolio of assets in Nigeria and the Mozambique Channel. The Letter of Intent, which is non-binding, calls for SAPETRO to take a 20% participating interest in exchange for paying 40% of the costs of the upcoming Fatala well up to a $50 million cap of predicted total well costs. Above that amount, SAPETRO would pay its proportional 20% share.
The LOI contemplates that the two companies will work to sign definitive documents within 45 days unless extended by further agreement. SAPETRO’s responsibility for financial commitments related to the concession begins immediately but will not be due for payment until final approvals from the government of Guinea are received.
“The addition of SAPETRO to the Guinea project team represents a big step forward in sharing project-related costs and risks with reputable industry players who recognize Hyperdynamics’ Guinea concession’s economic attractiveness and geologic prospectivity,” said Ray Leonard, Hyperdynamics’ President and Chief Executive Officer. “SAPETRO’s experience in West Africa, its financial strength and its desire to have an exposure in high-quality, high-reward exploration acreage that will be tested in the near future makes them an ideal partner for us.”
Based in Lagos, Nigeria, SAPETRO holds a 15% interest in the prolific OML 130 license offshore Nigeria, operated by Total. The block contains two fields containing each in excess of 550 million barrels of oil, with the Akpo field reaching peak production of 197,000 barrels of oil per day in 2010 and the Egina field planned to come on stream in the second quarter of 2018 reaching a peak production rate of 200,000 barrels of oil per day by the end of 2018.
About HyperDynamics Corp.
Hyperdynamics is an emerging independent oil and gas exploration company that is exploring for oil and gas offshore the Republic of Guinea in West Africa. To find out more, visit our website at www.hyperdynamics.com.