Hyperdynamics Corporation’s subsidiary, SCS Corporation Ltd., and its project partner SAPETRO have received notice of a Presidential Decree signed by the President of the Republic of Guinea.
The decree is implementing the third amendment to its Production Sharing Contract that was signed on April 12, 2017, by the partners and representatives of the government.
The third amendment approves the assignment of 50% of SCS’ participating interest in the Guinea concession to SAPETRO, and it confirms the two companies’ rights to explore for oil and gas on a 5,000-square-kilometer block offshore Guinea. The contract requires that drilling operations begin on an initial exploratory well no later than May 30, and additional exploration wells may be drilled within the exploration period at the companies’ option.
“The decree signed by Guinea President Alpha Conde implementing the Third Amendment to our Production Sharing Contract demonstrates the Guinea government’s support for Hyperdynamics and SAPETRO to move forward with exploration of our high-potential Fatala prospect starting later this spring,” said Hyperdynamics President and Chief Executive Officer Ray Leonard .
The amendment also reaffirms clear title of SAPETRO and SCS to the concession and requires a $5 million security instrument to be put in place by SAPETRO and SCS within 30 days of the Presidential Decree. The security instrument is to be released when the drilling rig for the Fatala well enters Guinea territorial waters.
To recall, Hyperdynamics will use the Pacific Drilling-owned drillship Pacific Scirocco to drill the Fatala well.