Hyperdynamics Moves Forward to Drilling Offshore Guinea

Friday, October 06, 2006
Hyperdynamics has contracted with Applied Drilling Technology, Inc. (ADTI), a wholly owned subsidiary of GlobalSantaFe, to provide a detailed assessment of drilling infrastructure, support services and operating environment offshore the Republic of Guinea, West Africa. The ADTI study will be used in conjunction with a well design to produce an estimated project cost and a comprehensive drilling management services proposal to support a planned exploration program by Hyperdynamics under its previously announced agreement with the Republic of Guinea.

Upon the completion of ADTI’s study Hyperdynamics anticipates pursuing the following drilling project milestones: Preparation (project cost estimate and internal partner AFE approval securing yard space and a shore base; and procuring inspecting and shipping tangibles); Identifying a rig (preparing rig specifications for tenders and evaluation of tenders, signing a rig contract);

Finalize project management structure (signing contract); Drilling operations to begin (mobilization; spudding the well and drilling; primary log; evaluation; plugging/casing/testing options; demobilizing all equipment);

Hyperdynamics signed a new agreement last month with the Republic of Guinea to explore its offshore area which is one of the world's largest under-explored regions. The concession is considered to have world class potential for oil and gas discoveries based on the company’s seismic analysis.

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