Hyperdynamics Corporation’s subsidiary, SCS Corporation Ltd., and South Atlantic Petroleum (SAPETRO) have completed the closing of their previously announced farmout agreement.
SCS and SAPETRO are now full 50/50 partners in the Production Sharing Contract (PSC) with the Republic of Guinea, with each responsible for its proportionate share of the project costs.
SCS has received the preliminary closing payment from SAPETRO to cover half of the past costs incurred by SCS starting September 15, 2016, the day when the second amendment to the PSC was signed by SCS. The partners will be doing a final reconciliation of the past costs incurred by SCS during the next 45 days to make any adjustments.
“We are very pleased that SAPETRO has agreed to close the farmout agreement, and mobilization of the Pacific Scirocco, which arrived in Guinean waters on May 21, will proceed as planned. We look forward to testing the Fatala prospect in the near future, with the possibility of follow-up wells on additional prospects identified by our geoscientists on the 5,000-square-kilometer PSC block,” said Ray Leonard, Hyperdynamics’ President and Chief Executive Officer.
SCS and SAPETRO have also signed a joint operating agreement, which regulates how operations will be conducted. SCS will be the Operator for the PSC.