Hyperdynamics Corp (HDYNQ)

[TOB]

Why would that be? The problem is what are we supposed to get from this. This is the first time we were left off. Wouldn't you acknowledge things are at least on hold or would you ignore like they did entirely. -ANNLP123

Last year, Guinea was mentioned in the 2013 Interim Management Statement.

Highlights

Exploration and Appraisal

[...]

• Material upcoming drilling campaigns in Kenya, Ethiopia, Mauritania, Norway and Guinea

But not in the Operational update section.

This year's Interim Management Statement doesn't have the same "Highlights" section. Instead it has the "Strategic Overview" section where they talk a shift in focus:

However, given the current expectations for the oil price, reduced commercial success from offshore drilling and the lack of asset transactions, returns from drilling complex, deepwater wells are currently less attractive. In response, Tullow will now focus the majority of its exploration and appraisal expenditure on its operated onshore East Africa portfolio where significant value can be created by adding further resources and appraising existing discoveries to progress development in both Uganda and Kenya. In 2015, Tullow therefore expects to reduce net exploration and appraisal capital expenditure to around $300 million after the Norway tax rebate. During the year, Tullow will continue to seek new low cost and highly prospective exploration acreage in its core areas of Africa and the Atlantic Margins to ensure that the business continues to have an industry-leading exploration position.

So a bit of a mixed message here. Guinea is still mentioned in the Oct 2014 Overview Presentation, but not in the Nov 2014 Interim Management Statement in which they talk of reducing offshore drilling.

If the exploration Capex for 2015 is to be $300 million and the "majority" is to be spent in East Africa onshore, does that leave a sufficient budget for Guinea in West Africa offshore?

Who knows?

All we hear from HDY is from the 10-Q

The Consortium planned to drill the exploration well in the ultra-deepwater portion of the Concession in the first half of calendar 2014. On March 11, 2014 Tullow unilaterally asserted its claim that there had been a Force Majeure event under the PSC with the Government of Guinea, the Joint Operating Agreement (“JOA”) between Dana, Tullow and us and the SPA. Tullow stated in its notice that the decisions by the DOJ and the SEC to open investigations into our activities in obtaining and retaining the Concession rights constituted a Force Majeure event under the terms of the PSC, JOA and SPA. Tullow unilaterally lifted its declaration of Force Majeure effective May 3, 2014. Diligent efforts are being made to satisfy the conditions to resuming petroleum operations which include clarification from the government of Guinea that the investigations of Hyperdynamics will not adversely affect operations under the PSC. The Consortium continues to evaluate the Ebola virus outbreak in Guinea and surrounding counties. We cannot predict the timing or outcome of these events.