Hyperdynamics Corp (HDYNQ)

[tdbowieknife]

It's in the NT-10Q...

PART III — NARRATIVE

State below in reasonable detail why Forms 10-K, 20 - F, 11-K, 10-Q, 10-D, N-SAR, N-CSR, or the transition report or portion thereof, could not be filed within the prescribed time period.

The Company acquired well construction equipment on about August 15, 2016 as a part of a legal settlement with one of its former joint venture partners in its Concession in Guinea. The fair value of the well construction equipment acquired is estimated to be several millions of dollars; the accounting recognition of the asset addition and gain on settlement will reflect the fair value amount.

A fair valuation process has been underway, but the Company has not completed its valuation work as of November 14, 2016. The Company does expect to conclude its fair valuation and file its quarterly report on or before the fifth calendar day following the prescribed due date of its Form 10-Q.

The accounting recognition and reporting of this gain in this quarterly filing will reflect a significant change in the results of operations from the corresponding period for the last fiscal year.