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Hyperdynamics Corp. (HDY) in Play in West Africa and at Home

Hyperdynamics Corp. (HDY) is an independent oil and gas company with corporate headquarters in Sugar Land, Texas. They also have a West African office in the Republic of Guinea, as well as a Louisiana office. The company trades on the American Stock Exchange (AMEX) as part of the Oil & Gas Drilling and Exploration industry and has a market capitalization of $93.63M.

Through their subsidiary, SCS Corporation, they own the rights to explore and develop 31,000 square miles of offshore territory in the Republic of Guinea. Hyperdynamics Corp. is also focusing on U.S. production in proven areas. The Production Sharing Contract (PSC) with the Republic of Guinea is the largest offshore exploration license in West Africa. Nearby discoveries slated for further exploration include Côte d’Ivoire, Senegal, Mauritania, Ghana, and Guinea Bissau. The company’s current area of focus, offshore the Republic of Guinea, is due to the fact that – over the last three years – this play has resulted in at least 37 new field discoveries.

Hyperdynamics Corp.’s U.S. domestic operations currently cover 49 active wells. Current production comes from less than half of these wells. Oil production for November 2007 was approximately 3,400 barrels. The company expects to continue increasing this as additional wells, and leases, come online.

Hyperdynamics Corp. became a publicly traded company in 1996 and initially listed and traded on the OTCBB. The company’s focus from 1996 to 2000 was on information and data management technology. In May of 2001, they purchased SCS Corp. and shifted their focus to seismic data management. In 2005, they purchased HDY Resources to conduct domestic oil and gas production activities. They proceeded in this same year to list Hyperdynamics on the American Stock Exchange under the symbol HDY.

The company’s focus is to continue to explore their Republic of Guinea offshore opportunities. They hope to reduce risk and increase operational capacity by collaborating with other operators in this West Africa program. In addition, Hyperdynamics’ domestic subsidiary has programs in operation to further expand and develop oil production in Louisiana. This is for generating cash flow that can help with the operating costs for their international exploration activities.

Hyperdynamics is striving to be in play, profitably, in diverse areas for their shareholders benefit. On July 11, the company announced that their Louisiana-based oil production operations reported gross oil sales of approximately 15,592 barrels for the fourth quarter ending June 30, 2008. The company’s revenue from this production is approximately $1,260,000. This is a new production record, and it represents the highest quarterly revenue ever for Hyperdynamics Corp.

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