Uchenna Izundu
OGJ International Editor
LONDON, Oct. 19 -- Dana Petroleum PLC is to gain a 23% interest in the Hyperdynamics concession off Guinea under an exclusive letter of intent (LOI) signed with Hyperdynamics Corp., Sugar Land, Tex.
The partners hope a binding agreement will be signed by yearend for the acreage, which covers 80,000 sq km. Hyperdynamics hopes to bring another partner into the concession.
“Dana has the option to negotiate for an additional interest of up to a further 27% (to give Dana a total of 50% interest) if Hyperdynamics does not sign a letter of intent with such a company by Nov. 30,” said Dana.
In October, Hyperdynamics let a contract to TDI-Brooks International, Houston, for a comprehensive oil seep study (OGJ Online, Oct. 6).
Last month, Hyperdynamics agreed with Guinea’s energy ministry to relinquish 64% of the current acreage by yearend and review the existing production sharing contract (PSC) by Apr. 1, 2010 (OGJ Online, Sept. 15).
It will spud its first well by 2011. The company has right of first refusal on any new concessions Guinea offers in the relinquished area if it matched terms offered by another party.
Subject to signing the final agreement by Dec. 31, Dana will pay Hyperdynamics $5 million that will go towards a $10 million 2D seismic survey scheduled to start by Oct. 31. Dana will pay Hyperdynamics another $15 million, in either cash or shares, on signature of the revised PSC.
The seismic dataset will be used to evaluate which parts of the concession to relinquish as mutually agreed by Dana and Hyperdynamics.
Contact Uchenna Izundu at [email protected]
Rendering from Cedar LNG.
US Government Accountability Office.
