Hyperdynamics Corp (HDYNQ)

[Rule_62]

Bye-Bye drill ship. The Pacific Scirocco has charted a new course and set sail for Tenerife and along with it, the option wells. With it goes any immediate hopes of a sidetrack well to further investigate the 5m thick zone of undefined hydrocarbons. Any bets on when the offshore waters of Guinea next see a drill ship?

Of course the primary well target was a 75m thick zone, which held the potential for commercial viability if sufficient oil was found. Anyone know the prospect for commercial exploitation of a 5m thick find in this water depth (2895m/9498ft)? Ray Leonard stated in the July presentation that 50m net oil pay with good reservoir characteristics would represent a potential commercial success.

Things changed for Guinea with the 5m of undefined hydrocarbons (depending on what they turn out to be), but whomever drills the next well, it won't come cheap. They certainly won't benefit from any cost advantage of a drill ship already on site. I suspect the main benefactor of those 5m will be Guinea itself, who might receive higher bids in the upcoming offshore auction than they might otherwise have received.


PACIFIC SCIROCCO - IMO 9499905 - Details and current position

Stay tuned for the next installment of As The Drillbit (no longer) Churns ... it should be a fun-filled week ahead with the PSC set to expire in 5 days.