Hyperdynamics Corp. is an independent oil and gas company with operations in the Republic of Guinea which is located in West Africa. The company has the sole exploration and production rights over Guinea’s offshore region, which covers about 31,000 square miles.
Today there are few regions in the world that offer the opportunity to find world-class oil and gas reserves. Some of the regions include the deep waters of the Gulf of Mexico and offshore Brazil. Another current hotbed of lucrative exploration activity is the waters offshore of western Africa. Hyperdynamics’ license is the largest offshore exploration license in West Africa
The company announced yesterday that Hyperdynamics’ CEO, Ray Leonard, and the minister of mines, energy and hydraulics for the Republic of Guinea, Mahmoud Thiam, have signed a memorandum of understanding. The memorandum of understanding is a binding agreement which reaffirms the validity of the company’s concession.
Key terms of the agreement include the following:
• The government of Guinea reaffirms the validity of the company’s concession and Hyperdynamics’ right to choose 36% of the initial acreage and carry it through the exploration period.
• The required relinquishment of 64% of the acreage by Hyperdynamics, as stated in the 2006 contract, must take place by December 31, 2009.
• The company must spud its first well no later than calendar year 2011
• The company has the right of first refusal on any new concessions Guinea offers within the 64% relinquished area, granting Hyperdynamics the right to match the terms offered by another party.
Hyperdynamics’ CEO Leonard stated, “I am pleased that the government supports Hyperdynamics’ continuing program to explore for oil and gas offshore Guinea. This agreement clarifies key points such as the relinquishment dates of portions of our acreage and continuing rights, which allows us to move forward on our planned seismic program in the fourth quarter 2009.”