Hyperdynamics Corporation (NYSE:HDY) revealed the results of a new resource evaluation conducted by Netherland, Sewell & Associates, Inc. (NSAI) of the Company's oil and gas concession offshore Republic of Guinea.
NSAI conducted an assessment of the prospective oil resources in the selected prospects focused on the locations where Hyperdynamics plans to drill its first two exploratory wells in its concession offshore Guinea. The assessment of the prospective oil resources in the two selected prospects, and the stratigraphic prospect situated between them, which could also be tested by the wells, resulted in an aggregate of "Best Estimates" (P50) of 1.2 billion barrels of recoverable unrisked prospective oil resources.
The NSAI evaluation focused on the shallow water area that was evaluated by a 3D survey acquired by PGS for Hyperdynamics in 2010. The processing was completed in April 2011 by PGS. The NSAI evaluation focused strictly on the area designated by Hyperdynamics for the drilling of the first two exploratory wells.
"We find the review and assessment by NSAI encouraging and a confirmation of our drilling program set to begin in the fourth quarter of 2011," said Hyperdynamics' President and CEO Ray Leonard. "These were prospects not identified prior to the 3D seismic acquisition, processing and analysis completed earlier this year."
Hyperdynamics operates the concession with a 77 percent participating interest, with the remaining 23 percent held by Dana Petreoleum, a wholly owned subsidiary of the Korean National Oil Company.
Hyperdynamics sees 1.2B barrels of oil potential offshore Republic of Guinea