Tullow will commit up to $100 Million in drilling/expenses! Simba must be excited to have Tullow sniffing around so close to the Guinea properties. Another Kenya in the works perhaps!
Hyperdynamics to sell 40 pct stake in Guinea asset to Tullow Oil
Nov 20 (Reuters) - Oil and gas explorer Hyperdynamics Corp said it would sell a 40 percent interest in its primary asset in offshore Guinea to Britain's Tullow Oil Plc.
Hyperdynamics shares jumped 37 percent to $1.23 in premarket trading.
The company, which has seen its liquidity shrink due to higher-than-expected drilling costs, said in April it was looking to sell about half of its 77 percent stake in the 25,000-square-kilometer licence.
Guinea was reviewing Hyperdynamics' rights to nearly a third of the country's offshore oil blocks, Reuters reported earlier this month, citing a source.
The west African country had alleged that the resource contract was signed under murky conditions. Texas-based Hyperdynamics, which began operating in Guinea in 2002, relinquished 70 percent of its original holding in 2009 after a public outcry.
Under Tuesday's agreement, Tullow will pay Hyperdynamics $27 million for its past costs and also carry a share of the company's future expenses up to $100 million.
The sale is expected to close by year-end following an approval from Guinea's mines and geology ministry.
Hyperdynamics shares closed at 90 cents on Monday on the New York Stock Exchange.
© Thomson Reuters 2011. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.
Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to colleagues, clients or customers, use the Reprints tool at the top of any article or visit: www.reutersreprints.com.