Hyperdynamics Corp (HDYNQ)

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http://biz.yahoo.com/bw/080312/20080312005334.html?.v=1

Press Release Source: Hyperdynamics Corporation


Hyperdynamics Accepts Offer to Acquire 85% WI in 264-Acre Lease in the Big Island Field
Wednesday March 12, 7:00 am ET


HOUSTON--(BUSINESS WIRE)--Hyperdynamics Corporation (AMEX:HDY) announced today that its domestic subsidiary Trendsetter Production Company (TPC) and its partner Rabb Contracting Company, LLC (RABB) acquired a 264-acre lease in the Big Island Field in Rapides Parish, Louisiana. Under a contractual relationship with RABB since last summer, after securing this new lease, the offer to become an 85% working interest (WI) owner was extended to TPC. After reviewing the details of the opportunity, TPC accepted.
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RABB, as the operator, will be moving quickly to secure the drilling of the most lucrative drilling location which it plans to drill to a targeted depth of approximately 5,500 feet before June 2008. The lease contains 7 wells that historically produced over 429,000 barrels of oil from the Turner sand reservoir. A recent prospect report, prepared by a local Petroleum Geologist, included net pay maps with correlation logs. This report indicated that this sand had estimated initial reserves in excess of 868,000 barrels.

Mr. Claude Rabb, President of Rabb Contracting Company, LLC, commented that, “this lease represents a prime opportunity to tap into an excellent field that was shut down years ago when oil prices were insufficient to sustain production or further development. With oil prices at current levels, the economics are very intriguing especially when you consider that several hundred thousand barrels were most likely left unproduced.”

Mr. Jeremy Driver, President of TPC, stated that "this acquisition falls in line with our domestic philosophy of re-entering and revitalizing production from fields that have produced before. Over the years enormous amounts of production were shut-in and plugged when soft commodity prices did not warrant ongoing efforts. Big Island is typical of the fields we consider, having multiple sands containing significant oil and gas."

About Hyperdynamics

Hyperdynamics Corporation provides energy for the future by exploring and producing sources of energy worldwide. The company's internationally active oil and gas subsidiary, SCS Corporation, owns rights to explore and exploit 31,000 square miles offshore the Republic of Guinea, West Africa. HYD Resources Corporation focuses on domestic production in proven areas. To find out more about Hyperdynamics Corporation, visit our Website at http://www.hyperdynamics.com.

Forward-Looking Statements

Statements in this news release are “forward-looking” as defined by the U.S. Securities and Exchange Commission and are based on expectations, beliefs or projections that are subject to numerous risks and uncertainties. Investors are cautioned that these statements are not guarantees of future performance, and actual results could differ materially. Please refer to “Risk Factors” in the company's Form 10-K filed with the SEC.