Hyperdynamics Corp (HDYNQ)

[Rule_62]

IF the Fatala well had struck oil, an extension on the exploration lease would have been available and there were a number of other prospects awaiting the drill bit. Unfortunately, the Fatala PR stated very clearly that there were NO signs of hydrocarbons. None. Nada. Dust.

As anyone who was following this stock knows, it was everything the company could do to put together the funding to drill Fatala. As the CEO clearly stated in an question/answer session during a conference call back in the Spring, Fatala was the last chance.

The exploration lease expires in a matter of days. Any remaining cash will all get burnt up by rent, salaries and overhead obligations. Even if Ray were able to negotiate some kind of lease extension, there's little hope of raising funds for further deep-water exploration with an exploration lease where the best shot at finding oil turned out to be a duster. Especially for a company that just drilled a duster in an exploration environment where there is currently little appetite for deep water and ultra-deep water wells.

RIP Hyperdynamics.