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Hyperdynamics Corp. (AMEX: HDY) Strikes Black Gold off Africa

Early May 2008 market capitalization for this stock has been well below $150 million. The stock price has hovered around $2. All Trailing Twelve Months financial indicators are hugely negative. Why should such a stock be an interesting one to watch?

The answer lies in the fact that this corporation is part of the Energy Sector. There is always the possibility that a large and new discovery of natural resources will transform the fortunes of the stock.

The company’s engineers have found a possibly enormous reserve of oil and gas off the West African coast. It has exploration and production rights to more than 30 thousand square miles of territory in this area. The surrounding region has yielded more than 40 major discoveries in recent years. It has become increasingly evident that the submarine rock off the West African coast could be a vast treasure-house of energy resources for the whole world. The company has seismic data to indicate that its exploration area is very similar to established finds.

The stock is neither dependant on hypothetical reserves nor limited to the waters off the African coast. It also has significant exploration rights and proven reserves in Louisiana. The company has recently put a leased facility in the state into actual production. It intends to acquire further wells in the area.

The 52-week high for the stock is $4. The actual Louisiana production and the high-probability of successful production off the African coast indicate that the stock could approach and cross previous stock price records.

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