Hyperdynamics levels lawsuits over offshore Guinea drilling project

Hyperdynamics Corp. and its subsidiary, SCS Corp., leveled lawsuits against Tullow Guinea Ltd. and Dana Petroleum Monday, alleging Tullow and Dana did not follow through on the terms of a joint operating agreement (JOA).

Hyperdynamics also claims that officials of the companies have refused to sign a production sharing contract with the government of Guinea connected to a well-drilling project in offshore Guinea. The companies' alleged refusal to adhere to the agreement has caused project delays and losses.

Court records indicate the product sharing contract has been initialed by Tullow, an offshoot of Irish company Tullow Oil, representatives, but the companies have proceeded to send the document back and forth multiple times and have continued to "insist the other must sign first and even ignoring Hyperdynamics' suggestion that they sign simultaneously."

"We bring these lawsuits with reluctance, and only after concluding that all other avenues available to us have been exhausted," Ray Leonard, Hyperdynamics president and CEO, said. "Having watched Dana and Tullow send the unsigned PSC amendment back and forth to each other repeatedly, we determined that neither of our partners was prepared to honor the commitments made to us and to the government of Guinea to proceed with drilling. We therefore had no choice but to pursue our rights by the only means left open to us. We plan to continue with all efforts to get this well drilled."

More information about the legal action and Hyperdynamics is available at www.hyperdynamics.com.

Dana is a company of Korean National Oil Co.