Hyperdynamics Corp (HDYNQ)

[phxdishman]

Tullow Position
Yes it seems very much that there is existential thinking going on. If you can watch the webcast of the Tullow presentation this morning- I think it is available for several days yet- you can see their position. A. Heavey says somewhere at the start that Tullow originally considered the oil price decrease another "normal cycle" but changed this year to consider this more a "one off" crisis. I believe they feel they were caught wrong- footed with an inordinately high debt load for TEN when the price crash hit and don't want to repeat this experience- thus they are planning any future development to be funded via cash flow, They have tried to plan in flexibility for both future Ghana epansion as well as East Africa development (both core assets). So any exploration drilling is not planned for the next two years (unless a price spike) and in fact they have written off $60M for the Guinea license. I do not believe they will voluntarily drill in deepwater. It will be up to the legal team...

JMHO