Hyperdynamics Corp (HDYNQ)

[Rule_62]

That's an old description. HDYN no longer has any ties with either Tullow Oil or Dana Petroleum.

HDYN does not survive on contracts. HDYN does not do contract work for Guinea or anyone else. The PSC (Production Sharing Contract) defines what Guinea receives in the way of taxes and royalties if oil were to be found and commercially exploited.

HDYN has survived primarily on cash raises (secondary offerings and private placements) on the back of their exploration lease in offshore Guinea waters. The fact that the lease expires in 4 days will make it extremely difficult to raise any funds at this point.

In 2010 and 2011 they were a going concern. Oil was also $80+ a barrel, making ultra-deep oil feasible. The lease area was also considerabley larger then (at one point it encompassed most of the Guinea offshore waters). Now, two wells and an oil crash later, not so much. It took 5 1/2 years to progress from drilling Sabu (completed in early 2012 with Dana as a partner) to raising the cash and signing another partner to drill Fatala.

After the Sabu failure the stock crashed hard, even though there was a considerable amount of time still left on the lease. There were also multiple lawsuits filed. As time continued to tick down on the lease, the stock value continued to decline. Optimism for the Fatala well kept the stock somewhat buoyant the past 6 months, although continual dilution pressure from ongoing offerings to raise cash for the well prevented any real pre-drilling run-up.