Repsol YPF may join exploration effort off Guinea

Repsol YPF SA signed agreements with Hyperdynamics Corp., Sugar Land, Tex., under which the Spanish company may become operator with 37% interest in an exploration concession held by Hyperdynamics off Guinea, West Africa.

By OGJ editors
HOUSTON, Nov. 30
-- Repsol YPF SA signed agreements with Hyperdynamics Corp., Sugar Land, Tex., under which the Spanish company may become operator with 37% interest in an exploration concession held by Hyperdynamics off Guinea, West Africa.

A letter of intent gives Repsol YPF exclusive negotiating rights to take the 37% stake for $31.5 million. Becoming operator is subject to government and third-party approvals and consents. The two companies will work to sign definitive documents by Jan. 31, 2010, or the letter of intent terminates unless extended by both parties.

Before signing definitive documents, Repsol YPF has the right to participate with Hyperdynamics in evaluating geological and geophysical data, subject to licensing obligations with various seismic contractors. It also has the right to participate in the preparation for negotiations with Guinea’s Ministry of Mines, Energy and Hydraulics regarding the terms of the clarification of the production sharing contract.

The letter of intent with Repsol YPF satisfies the clause in Hyperdynamics’ existing LOI with Dana Petroleum PLC that envisioned Dana’s option right to take up to an additional 27% of the concession if Hyperdynamics did not secure the participation of a major oil company by Nov. 30.

Hyperdynamics noted that Dana has made discoveries off Morocco and Mauritania and Repsol YPF is a partner with Anadarko Petroleum Corp. in the Upper Cretaceous Venus discovery off Sierra Leone.

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