Hyperdynamics Corp. recently said that it signed an agreement to issue 7.22 million shares of common stock at a price of $0.90 to several different institutional investors. The company would realize gross proceeds of $6.5 million before expenses.

Hyperdynamics Corporation also issued warrants to these investors that entitle the holders to buy an additional 3.25 million shares at a price of $0.98. The warrants must be exercised over a four year time frame that begins six months after the transaction closes.

Hyperdynamics Corporation is an oil and gas exploration and production company with properties in West Africa. Hyperdynamics Corporation entered into West Africa in 2006, after the company signed an agreement with the Republic of Guinea for an offshore concession totaling 20 million acres.

The company later farmed out part of this acreage to Repsol YPF SA (REP), a large Spanish oil company, and Dana Petroleum, a Scottish oil company. The agreement with the Republic of Guinea requires Hyperdynamics Corporation to drill an exploration well in 2011, and a second well by the end of 2018. Each well is expected to cost a minimum of $15 million.