Hyperdynamics Corporation announced 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 elect 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 deep water fan prospect – in the first quarter of 2014. Also, as part of the requirements under the PSC, the consortium will relinquish 25% of the remaining concession area back to the government of Guinea on September 21, 2013.
"This three-year renewal is a key step in advancing our ongoing exploration program offshore Guinea," said Ray Leonard, President and Chief Executive Officer of Hyperdynamics. "As the new operator, Tullow is making strong progress in leading the development of our work plan for the next exploration well. Tullow has committed to the project a high-quality deep water drilling rig, and we look forward to testing a high-potential deepwater prospect offshore Guinea sometime early next year," he added.
Hyperdynamics holds a 37% nonoperated working interest in the offshore Guinea exploration project. Tullow Oil, the operator, holds a 40% working interest, and Dana Petroleum holds a 23% working interest.