Hyperdynamics Corp (HDYNQ)

[lvl99]

Any thoughts/ guesses on the farm out/equity raise?

I found it a little interesting that the mtg on the 29th only proposes increasing the number of shares by roughly 43MM not 50MM that Ray had mentioned on the October 6th conference call. With a max of 87MM shares outstanding and assuming Hdy were to go it alone, we would need the Offering to be 1.20 which is where the market appears to be pricing the stock. This would allow us to drill two wells at roughly $80MM.

However, again assuming this scenario, this does not give the company any head room to raise additional funds should they need to or provide cushion for their standard burn rate which is averaging roughly $1MM/month.

I get the feeling the market is pricing in a joint equity and farm out scenario. If so what are your thoughts on this? Anyone think we could get a a full carry or two for 50% of the concession?

Interested in hearing everyone's thoughts. At least things do appear to be moving in the right direction (finally!)