Hyperdynamics Corporation announced that AGR Peak Well Management Ltd. has signed contracts on behalf of the Company for long-lead-time equipment, materials and professional services totaling approximately $12 million.
These purchases, which are included under several separate contracts, will cover Hyperdynamics' needs for the first two exploration wells that are planned offshore Guinea starting in the fourth quarter of this year.
The majority of the purchases include materials that will be used in the well itself, such as pipe and casing, a wellhead, drilling fluid and cement. Other contracts cover logistics and a variety of analytical services to evaluate underwater and sea floor conditions at the proposed well sites.
"These contracts are an important next step in our preparations for beginning Hyperdynamics' exploration drilling program later this year," said Ray Leonard, the Company's President and CEO.
"They cover the majority of the long-lead-time materials and services that we will need to drill wells one and two, and they represent the majority of equipment and services that will be used offshore. Between now and the initiation of drilling, working through AGR, we plan to engage additional contractors to move people and equipment between the drillship and shore and to secure shore-based facilities, materials and services."