Hyperdynamics to conduct 2D survey offshore Republic of GuineaProjects and Operations // October 2, 2009
Hyperdynamics Corporation has announced that it has signed a contract with Bergen Oilfield Services in Norway to conduct a 9,000km 2D marine seismic survey on portions of its oil and gas concession offshore Republic of Guinea. The survey is expected to get under way by the end of October.
"This survey will help us make a final determination of which portions of our 31,000 square mile concession area we want to maintain for future exploration," said Ray Leonard, Hyperdynamics' President and Chief Executive Officer.
"Under a new September Memorandum of Understanding that reaffirms the validity of our Production Sharing Contract, we are required to relinquish 64 per cent of the acreage by December 31, 2009. This new data will enable us to choose the best acreage to retain from this vast area, and it will also help us high-grade our better prospects so we can choose the areas where we want to shoot a more limited 3D survey next year."
"The raw field records or the Brute Stacks from the 'new' 2009 2D seismic survey will be delivered by BOS in almost real time as it is acquired," said James Spear, Hyperdynamics' Vice President of Exploration and Development. "The processing of this data will be done onboard one of BOS's modern seismic vessels, as each line segment or sequence is acquired offshore Guinea. The BOS vessel is equipped with state-of-the-art Sercel recording instrumentation along with Sentinel Solid streamers. The contractor's vessel is prepared to continue on 3-D acquisition on short notice."
The cost of the project is estimated to be US$10 million. Hyperdynamics plans to fund the survey using proceeds from a farm-in arrangement it expects to complete with another oil and gas producer during the fourth quarter and/or with proceeds from a potential capital raise. The company will make an upfront payment of US$500,000.
In addition, as a guarantee to Bergen Oilfield Services, Hyperdynamics will allow seismic work to begin ahead of the farm-out and/or financing period.
Hyperdynamics will issue the seismic contractor 2.5 million restricted common shares, or approximately 4.4 per cent of outstanding shares. The deposit shares would serve as collateral for a mobilization payment of US$1,100,000, and for three subsequent payments due as the data is processed and delivered.