Hyperdynamics Corp (HDYNQ)

[phxdishman]

Just a correction to the Sapetro "guarantee" status. There is no "guarantee" to the funding or drilling as Sapetro has an option, but not an obligation, to provide further funding to HDYN in the event they need credit support, and are in compliance with other T&C's.
Here is the language from the recent (June 7) S1A filing:
" SAPETRO and SCS further agreed that SAPETRO may elect to pay for a portion of SCS's Fatala-1 well costs so long as SCS is not in default of either the PSC or the Farmout Agreement and requires credit support. In case SAPETRO makes such payments for a share of SCS's costs of, SCS shall assign to SAPETRO 2% of its participating interest in the Concession for each $1 million of SCS's costs paid by SAPETRO."
Having said there is no guarantee- I would believe it is highly likely Sapetro would provide such funding as they have very favorable terms and a current stake in the drilling success, but there is no contactual obligation to do so.
JMHO