Hyperdynamics to swap Guinea interest for Fatala well costs

Hyperdynamics Corporation is in talks with South Atlantic Petroleum (SAPETRO) to farm out part of its interest in a concession off Guinea. In exchange, SAPETRO will pay part of costs in the upcoming Fatala well. 

The two companies have signed a letter of intent to negotiate the assignment of a participating interest in Hyperdynamics’ oil and gas concession offshore Guinea to SAPETRO.

SAPETRO is a privately held Nigerian oil and gas exploration and production company.

Hyperdynamics explained on Monday that the letter of intent, which is non-binding, calls for SAPETRO to take a 20% participating interest in exchange for paying 40% of the costs of the upcoming Fatala well up to a $50 million cap of predicted total well costs. Above that amount, SAPETRO would pay its proportional 20% share.

Just last week, Hyperdynamics signed a definitive drilling services contract with Pacific Drilling to engage the Pacific Bora drillship to drill the Fatala well.

The LOI contemplates that the two companies will work to sign definitive documents within 45 days unless extended by further agreement. SAPETRO’s responsibility for financial commitments related to the concession begins immediately but will not be due for payment until final approvals from the government of Guinea are received.

“The addition of SAPETRO to the Guinea project team represents a big step forward in sharing project-related costs and risks with reputable industry players who recognize Hyperdynamics’ Guinea concession’s economic attractiveness and geologic prospectivity,” said Ray Leonard, Hyperdynamics’ President and Chief Executive Officer.

“SAPETRO’s experience in West Africa, its financial strength and its desire to have an exposure in high-quality, high-reward exploration acreage that will be tested in the near future makes them an ideal partner for us.”

Share this article

Follow Offshore Energy Today

Events>

<< May 2019 >>
MTWTFSS
29 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

08th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

OWI WA 2019

West Africa’s only dedicated Offshore Well Intervention Conference is returning for its second year…

read more >

OIL & GAS PHILIPPINES 2019

Oil & Gas Philippines event display products like Oil & gas, fire protection systems and materials…

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

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