HOUSTON, March 14, 2011 /PRNewswire/ -- Hyperdynamics Corporation (NYSE Amex: HDY) today announced the results of a new resource evaluation conducted by Netherland, Sewell & Associates, Inc. (NSAI) on the deep water portion of the Company's oil and gas concession offshore Republic of Guinea.
NSAI, an independent engineering firm and provider of reserve audits and exploration resource assessments, conducted an assessment of the prospective recoverable oil resources in selected deep water leads that resulted in an aggregate of "Best Estimates" for all assessed leads of 3.7 billion barrels of potentially recoverable unrisked prospective oil resources. Applying the risk factors assigned by NSAI to the "Best Estimates" of each of the seven leads, the risked resources are approximately 400 million barrels of oil.
The NSAI evaluation focused on the deeper water area evaluated by the 2D survey conducted for the Company in late 2009 by Bergen Oilfield Services. This resource estimate is in addition to the estimate of an aggregate of 2.3 billion barrels of potentially recoverable unrisked prospective resources (approximately 350 million barrels of oil risked) on the area in shallower water that was evaluated by NSAI for the Company in September 2010. The data from a 3,635-square-kilometer 3D survey shot by PGS of the shallower water in late 2010 is currently being processed and interpreted by the Company.
"We find the additional review and assessment by NSAI encouraging and a confirmation of our analysis of the potential prospectivity of the concession," said Hyperdynamics' President and CEO Ray Leonard. "The significant prospective resources in the deep water will need to be taken into account in our evolving exploration program. We still plan to spud our first exploration well in the fourth quarter of 2011."
Hyperdynamics operates the concession with a 77 percent participating interest, with the remaining 23 percent held by Aberdeen-based Dana Petroleum plc.
The NSAI report is available in the Investor Relations section of Hyperdynamics' website, www.hyperdynamics.com.
Prospective resources are those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. The prospective resources included in the NSAI report are leads and indicate exploration opportunities and development potential in the event a petroleum discovery is made. They should not be construed as reserves or contingent resources.
Hyperdynamics is an emerging independent oil and gas exploration and production company that is exploring for oil and gas offshore the Republic of Guinea in West Africa. To find out more, visit our website at www.hyperdynamics.com.
Cautionary Note to Investors Concerning Prospective Resources
This news release uses the term "prospective resources." Hyperdynamics advises investors that the United States Securities and Exchange Commission (SEC) does not recognize this term, and the SEC permits oil and gas companies, in their filings, to disclose only "reserves." In addition, prospective resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. Investors are cautioned not to assume that estimates of prospective resources are economically drillable, or will ever be upgraded into reserves.
Forward Looking Statements
This news release and the Company's website referenced in this news release contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding Hyperdynamics Corporation's future plans and expected performance that are based on assumptions the Company believes to be reasonable. Statements preceded by, followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", "may increase", "may result", "will result", "may fluctuate" and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. A number of risks and uncertainties could cause actual results to differ materially from these statements, including without limitation, funding and exploration efforts, fluctuations in oil and gas prices and other risk factors described from time to time in the Company's reports filed with the SEC, including the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2010. The Company undertakes no obligation to publicly update these forward looking statements to reflect events or circumstances that occur after the issuance of this news release or to reflect any change in the Company's expectations with respect to these forward looking statements.
Dennard Rupp Gray &Lascar, LLC
Ken Dennard, Managing Partner
Jack Lascar, Partner
Anne Pearson, Sr. Vice President
SOURCE Hyperdynamics Corporation