Hyperdynamics Corp (HDYNQ)

[lvl99]

I spoke to Jack Lascar today. Here are my takeaways.

It was a good call, although no real new news. This is a high octane, high risk/reward stock. The company feels like it has the pieces in place to get the 50-50 partner deal closed. I was hoping the deal negotiations would include a carry on well, or a higher percentage like the SAPETRO deal, but this does not appear to be the case.

The partner will cover 50% of well costs, or $25MM, of which HDY has already spent $7MM. Plan is to raise $18MM if the company is able to ink this deal. Term sheets have apparently been distributed and a preliminary offering deal is in place should the 50-50 venture go through.

Short-term financing/ bridge loan will be in neighborhood of $1MM, so it appears that Guinea is onboard with using the Tullow lead items as collateral. We may hear news in next 15 days regarding the deal. Ray working hard to get deal closed, but unfortunately reality is right now the company is out of money (literally).

I'll probably sit on the sidelines, considering even if HDY is able to announce a partner, the framework for a major offering will be on deck. As always, good luck longs!