I wish I paid more attention to the earlier warnings. It took until the warnings in the Feb 10-Q for me to rethink whether there was a strong possibility that the company might not survive this. Even then, it took until the FM declaration for me to take action to protect myself from further loss.
From the Sept 30th press release:
HOUSTON, Sept. 30, 2013 /PRNewswire/ -- Hyperdynamics Corporation (NYSE: HDY) today announced that in September 2013 it received a subpoena from the United States Department of Justice (DOJ) requesting that the Company produce documents relating to its business in Guinea.
In 2006, a Production Sharing Contract was signed by the Company and the government of Guinea granting rights to an oil and gas concession offshore Guinea. The Company understands that the DOJ is investigating whether Hyperdynamics' activities in obtaining and retaining the concession rights and its relationships with charitable organizations potentially violate the U.S. Foreign Corrupt Practices Act or U.S. anti-money laundering statutes. The Company has retained legal counsel to represent it in this matter and is cooperating fully with the government. The Company is unable to predict when the investigation will be completed, what outcome may result and what costs the Company will incur in the course of the investigation.
From the Nov 12th 10-Q:
"The U.S. Department of Justice (DOJ) is investigating potential violations of the Foreign Corrupt Practices Act (FCPA) and anti-money laundering statutes. If an action is commenced or we are found to have violated the FCPA or other legal requirements, our business and financial condition could be adversely affected."
"Legal fees and associated costs in connection with legal proceedings and the DOJ investigation will likely be significant in the next several months and are expected to adversely affect our liquidity and financial condition and results of operations. The pendency of those matters, and the related legal fees and associated costs, could also adversely affect our business relationships."
"Due to expected significant costs in connection with our various legal proceedings and the government investigation, our liquidity and financial condition will be strained. Liquidity concerns will be exacerbated if costs associated with the drilling of the exploration well planned for 2014 are greater than $100 million. In addition, these costs and any negative outcomes could also adversely affect our ability to obtain financing, or to obtain financing on terms advantageous to us."
"We expect to incur significant legal fees and associated costs during the next year, which will adversely affect our liquidity and financial condition."
From the Feb 7th 10-Q:
"The U.S. Department of Justice (DOJ) and the United States Securities and Exchange Commission (“SEC”) are investigating potential violations of the Foreign Corrupt Practices Act (FCPA) and anti-money laundering statutes. If an action is commenced or we are found to have violated the FCPA or other legal requirements, our business and financial condition could be adversely affected."
"In September 2013 we received a subpoena from the DOJ. Subsequently, in January 2014 we received a subpoena from the SEC. Both subpoenas request that the Company produce documents relating to its business in Guinea. We understand that they are investigating whether our activities in obtaining and retaining the Concession rights and our relationships with charitable organizations potentially violate the FCPA and anti-money laundering statutes. We have retained legal counsel to represent us in this matter, and we are fully cooperating with the government. We are unable to predict when the investigations will be completed, what outcome will result or what the total costs we will incur in the course of the investigations. "
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