Hyperdynamics raises over $6M from investors for Fatala well costs

Through common stock and warrants offering, Houston-based Hyperdynamics has raised over $6 million, which the independent will use to pay for an exploration well on its acreage offshore West Africa. 

The company announced on Wednesday that the closing of a private placement offering of units of the company’s securities each consisting of one share of the company’s common stock and a warrant to purchase three-quarters of a share of the company’s common stock within two years at an exercise price of $1.825 per whole share.

The purchase price was $1.46 per unit. The warrants will have “weighted average” adjustment anti-dilution protection.

The company closed on gross proceeds of $6.33 million, before placement agent fees and expenses of the offering.

Hyperdynamics CEO, Ray Leonard, commented, “I would like to thank all investors who participated in the offering. This was a timely closing as we have signed final closing documents on the farmout agreement with our partner SAPETRO. This capital will be used to pay a part of our portion of costs of drilling operations, shared from today 50/50 with SAPETRO.”

To recall, Hyperdynamics on Tuesday closed its previously announced farmout agreement with a privately held Nigerian oil and gas exploration and production company, SAPETRO, which joined Hyperdynamics as a 50/50 partner in the Production Sharing Contract with the Republic of Guinea.

In exchange, SAPETRO made a commitment to pay 50% of the Fatala well costs, the minimum work program under the PSC, plus reimbursement to Hyperdynamics’ subsidiary SCS of half of the costs previously incurred in preparing for the well since the PSC Second Amendment was signed.

Hyperdynamics also said on Tuesday that SCS received the preliminary closing payment from SAPETRO.

Regarding the partnership’s progress with the well planning, the Pacific Drilling-owned drillship, Pacific Scirocco, entered Guinea shelf waters on May 21. The company then said that the drillship would start drilling the Fatala prospect once the rig gets on board additional equipment and supplies for which an amendment to the drilling contract was signed in mid-May. The rig is currently at anchor off Conakry, Guinea.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply