HDY, Hyperdynamics Corporation

HDY reported that its wholly owned subsidiary, SCS Corporation Ltd, has entered into an agreement with Tullow Guinea Ltd., a subsidiary of Tullow Oil plc, for the sale of a 40% gross interest in HDY's oil and gas exploration concession offshore Guinea and the transfer of operatorship to Tullow. Subject to the completion of due diligence, the sale is expected to close by year-end following the satisfaction of certain closing conditions and approval of the assignment by Guinea's Ministry of Mines and Geology. According to the terms of the agreement, Tullow will reimburse SCS in respect of its past costs in the amount of $27 million cash at closing and will carry SCS' participating interests share of future expenses up to a gross expenditure cap of US$100 million, from the date of entry into the next exploration period until 90 days after the drilling of the well. Tullow will also carry SCS's share of costs associated with an appraisal well of the initial exploration well, if drilled, subject to an additional gross expenditure cap of $100 million. HDY 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.