Tullow Oil, the Irish oil titan, has agreed a farm-in with Hyperdynamics Corp for the sale of its 40 per cent interest in Hyperdynamics' oil and gas exploration concession offshore Guinea and the transfer of operatorship to Tullow.
Under the agreement, Hyperdynamics Corp's wholly-owned subsidiary, SCS, has formed the agreement with the Guinea-based subsidiary of Tullow, and is expected to close by the year-end following the approval by Guinea's Ministry of Mines and Geology.
Following the farm-in, SCS will own 37%, Tullow 40%, and Dana Petroleum 23%.
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"We are delighted to have reached this agreement with Tullow," said Ray Leonard, Hyperdynamics President and Chief Executive Officer.
"Tullow fulfills all the requirements we were looking for: expertise and exploration success in the Atlantic Margin off West Africa - particularly the Transform Margin play that is present on the Guinea acreage - along with experience in deepwater production, the financial strength needed to explore this large block and availability of a suitable rig to initiate the deepwater drilling. Our decision to choose Tullow was made in consultation with the Guinea Ministry of Mines and Geology.
"We believe this agreement with Tullow enhances the future of Hyperdynamics' Guinea exploration program and represents the best opportunity for us to realise maximum potential value for our shareholders as we explore the potential of this large and prospective petroleum basin," he added.
Tullow's share price rose 0.44% to 1,373p by 13:48.
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