Offshore oil and gas exploration company Hyperdynamics has entered into a $6 million definitive agreement to issue and sell 40 million common shares at a price of $0.15 per share to CLNG Limited (Hong Kong).
CLNG is a private investment company involved in global energy and mineral projects.
The closing of the sale is subject to the completion of satisfactory due diligence by each party of the other, waiver by holders of Hyperdynamics’ Series A Convertible Preferred Stock of their right of first refusal, and satisfaction of other customary closing conditions.
If this purchase is completed, CLNG will own approximately 53% of Hyperdynamics’ outstanding common shares and will have the right to appoint representatives who will form a majority of Hyperdynamics’ board of directors, but no specific agreement has yet been entered into in this respect, Hyperdynamics, the company focused on exploring waters offshore Guinea, said on Friday.
The stock purchase agreement provides that Ray Leonard will remain President, Chief Executive Officer and a director of the company, and Jason Davis will remain Chief Financial Officer, subject to the discretion of the board and resolutions of the stockholders.
Ray Leonard, Hyperdynamics’ President and CEO, commented, “We look forward to working with our prospective new majority shareholder, riding on our experience and demonstrated competencies of the past eight years.”
Markos Armanious, Chairman of CLNG, stated, “CLNG values the operational expertise that Hyperdynamics has demonstrated in its ability to drill in record water depths, on budget and on time, in the West Africa transform margin.”
Hyperdynamics recently completed the drilling of what it had hoped to be a world class discovery – the Fatala-1 well. Unfortunately for the company, the well – deepest ever in Africa – was dry.
The dry Fatala-1 well was drilled with the Pacific Scirocco drillship in 2,897 meters of water and had reached a total depth of 5,117 meters below sea level.
In subsequent statements, Hyperdynamics said it would not be giving up on offshore Guinea because it still believed there was value to be found below the country’s seabed. The company has asked the government of Guinea to grant it a two-year appraisal period under its oil and gas Production Sharing Contract.
Offshore Energy Today Staff