Houston independent Hyperdynamics Corp.’s wholly owned subsidiary, SCS Corp. (SCS), and the government of the Republic of Guinea have entered into a one-year extension for a production sharing contract (PSC) offshore Guinea.
The deal marks a second amendment to the 2006 PSC, and formally extends the PSC to 22 September 2017, which confirms that SCS is the 100% interest holder and the operator in the concession.
According to the amendment, Hyperdynamics will retain an area equivalent to approximately 5000sq km in the Guinea offshore, and during the one-year extension period, will drill one exploratory well with a projected commencement date of April 2017 with additional wells optional.
By 31 January 2017, Hyperdynamics plans to move into the territory of Guinea the long lead items it received in its settlement with Tullow and Dana that are currently in Takoradi, Ghana for the drilling of the exploration well.
If the exploratory the well is not drilled within the one-year extension period, Hyperdynamics will owe the government of Guinea the difference between the actual expenditures in Guinea related to the well and US$46,000,000.
"I am pleased with the government of Guinea's continued support of Hyperdynamics and look forward to the opportunity to drill the Fatala well in the near future,” Ray Leonard, Hyperdynamicspresident and CEO said. “Our efforts now shift to taking the operational steps in preparation for the drilling and in raising the required funds and/or teaming up with a partner in order to comply with the terms of the PSC amendment."
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