Hyperdynamics Corp. (NYSE: HDY) reports that Tullow Oil Guinea Ltd. has formally notified the Republic of Guinea, on behalf of the consortium that is exploring for oil offshore Guinea, of its intent to extend the Second Exploration Period for an additional three years, as provided for under the terms of its existing production sharing contract (PSC).
During the three-year extension of the Second Exploration Period – which extends through September 21, 2016 – the consortium will be required to drill one exploration well to a minimum depth of 2,500 meters below the seabed. Tullow Oil, the concession's operator, plans to spud the next exploration well – a deepwater fan prospect – in the first quarter of 2014. Also, as part of the requirements under the PSC, the consortium will relinquish 25 percent of the remaining concession area back to the government of Guinea on September 21, 2013.
Hyperdynamics holds a 37 percent non-operated working interest in the offshore Guinea exploration project. Tullow Oil, the operator, holds a 40 percent working interest, and Dana Petroleum holds a 23 percent working interest.