Hyperdynamics Corporation provided further details of the amendment to its Production Sharing Contract (PSC) with the Republic of Guinea. The amendment was signed late last week in the capital, Conakry, and Hyperdynamics has been informed that the implementing Presidential Decree is in the process of issuance.
The amendment was intended to bring the PSC into line with international standards and the amendment included the following terms, in addition to the terms discussed in the news release issued by Hyperdynamics on March 25, 2010:
- Removing the right of first refusal covering relinquished acreage;
- Clarifying that only those expenditures which were made following the date the PSC was signed (September 22, 2006) would be eligible for cost recovery; and
- Should the Government note material differences between provisions of the amendment and international standards or the Petroleum Code, Hyperdynamics and the Government would engage in renegotiation of the relevant articles.
"With this important step completed, we now look forward to the tender process for 3D seismic, which we expect to commence shortly," said Ray Leonard, President and CEO of Hyperdynamics.
The Company has made an 8-K filing with the Securities and Exchange Commission, which describes the material terms and includes a copy of the PSC amendment.