Hyperdynamics Corporation (HDY) announced today that the majority of proceeds from its $10.6 million registered direct offering that closed April 23 will be used to fund the Company's share of costs for the expanded portion of the 3D seismic survey that is targeted for the third quarter of this year.
Hyperdynamics has begun soliciting bids through a competitive tender process for a 3,500-square-kilometer seismic survey covering selected prospects within its 25,000-square-kilometer offshore Guinea exploration area. The tender includes both the acquisition and processing of 3D seismic data and was sent to major seismic contracting companies with offshore 3D capabilities.
"We have decided to increase the size of our planned 3D seismic survey from 2,000 square kilometers to about 3,500 square kilometers to enhance our chances of success in the drilling phase next year. The larger survey will allow us to cover two separate prospect areas containing multiple prospects with 3D data and to give us a wider range of choices of drilling objectives," said Ray Leonard, Hyperdynamics' President and Chief Executive Officer.
"We have a contractual commitment to begin drilling by year-end 2011; so in order to choose a drilling location and have enough lead time to procure drilling equipment and services, we need to begin shooting the seismic survey this summer. Tendering the 3D seismic now helps ensure that a vessel will be available.
"We are currently in ongoing discussions with several potential operating participants, and we expect the 3D seismic survey to significantly enhance our data set on this highly prospective acreage," Leonard said.