Offshore Guinea drilling project at standstill

An offshore Guinea oil and gas exploration project led by Hyperdynamics Corp. is at a standstill after project participants Tullow Guinea Ltd. and Dana Petroleum recently refused to meet obligations or sign pertinent documents necessary to move the project forward.

"We are extremely disappointed in the actions of both Tullow and Dana," Ray Leonard, Hyperdynamics president and CEO, said. "Dana stated that the only impediment to moving forward with petroleum operations was additional title assurances, but will not sign a document providing the exact assurances it sought. And, even though Tullow is the operator, it is refusing to take the required steps to move this project forward, including promptly signing a document it has already initialed. In sum, neither company has honored the commitments made to us and to the Government of Guinea to proceed with drilling."    

Still, Leonard insisted that the impasse would not stop his company from moving forward. 

"We will continue with our efforts to get this well drilled, and we are considering all of our options to accomplish this key objective," Leonard said.

The project carries a September 2015 deadline. Up to this point, all work programs and budgets had been approved by all parties.

On Nov. 18, 2015, Tullow representatives said the company would not restart petroleum operations unless Dana agreed to fund its portion of well costs, which Dana refused to do. The PSC has not been signed by officials from either company; both have stated they will not be the first to sign. In response, Hyperdynamics representatives suggested a simultaneous signing, but officials from both companies refused.

Hyperdynamics is an emerging independent exploration and production company that is exploring the Republic of Guinea's offshore for new sources of oil and gas in partnership with Tullow Oil Plc and Dana Petroleum E&P Ltd. It holds a 37 percent non-operator interest covering approximately 25,000 square kilometers in Guinea, one of the largest exploration and production licenses in West Africa.

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Hyperdynamics Corp.

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