Hyperdynamics files for bankruptcy

Hyperdynamics drilled the Fatala-1 well using the Pacific Scirocco drillship

Houston-based oil company Hyperdynamics on December 22 filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. 

Hyperdynamics’ business and the business of its subsidiary organized under the laws of the Cayman Islands, SCS Corporation, were included in the filing.

According to the filing, Hyperdynamics has between 50-99 creditors while SCS has between 1-49 creditors. Hyperdynamics is bringing in less than $500,000 in assets and up to $1 million of debt. On the other hand, SCS is bringing in less than $50,000 in assets and between $1 million and $10 millions of debt.

Hyperdynamics said in the filing that, as a result of the inability to secure additional liquidity to pursue a reorganization or sale without impairing the remaining assets of the company or SCS Corporation, the company’s board had determined that the filing of a voluntary petition seeking relief under Chapter 7 of the Bankruptcy Code is in the best interests of the company and SCS Corporation, their creditors, and other interested parties.

 

Investment deal falls through

 

The decision to file for bankruptcy came less than two weeks after the Hong Kong-based investment company, CLNG Limited, backed out of a deal made in early November to buy 40 million shares of common stock from Hyperdynamics for $6 million. With this deal, CLNG would have secured a 53% interest in Hyperdynamics.

However, on December 11 CLNG informed Hyperdynamics it would not proceed with the purchase of those shares, and the stock purchase agreement was terminated.

Earlier this year, Hyperdynamics completed the drilling of the Fatala-1 well, located offshore Guinea. Unfortunately for the company, the well was dry. The Fatala-1 well was drilled with the Pacific Drilling-owned Pacific Scirocco drillship in 2,897 meters of water.

Even after the Fatala well failure, Hyperdynamics believed there was value to be found below the country’s seabed and the company asked the government of Guinea to grant it a two-year appraisal period under its oil and gas Production Sharing Contract. The country’s government on December 7 decided not to grant the company the two-year appraisal period.

Offshore Energy Today Staff

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