In July, HYD put its first workover rig into operation and has since provided contract workover services for oil well owners in Louisiana. HYD's primary focus is now shifting from workover services to drilling new wells. The company further reported that a second rig has been refurbished and has commenced drilling operations this week. It is expected that a third and fourth rig should be deployed before year end.
When asked to comment, Sam Spears, President of HYD Resources, stated, "During my 30 plus years in the oil patch, our opportunities have never been greater. We already have a 60 day backlog of jobs for our workover rig and jobs are lining up for our other rigs as they come on-line." Spears went on to say, "Our timing appears to be very good. It's good to be the Driller when everybody wants to drill."
Kent Watts, Chairman and CEO of Hyperdynamics, stated, "The business strategy for HYD is to optimize a dual revenue stream. First, there's a huge demand for our contract services. Secondly, as part of our compensation for drilling contracts, we have the opportunity to receive working interest on producing wells as part of our price for drilling. Furthermore, we can obtain oil and gas leases which we can drill for our own account. Having the ability to produce current service revenues while at the same time building long-term production revenues, will make us financially stronger and yield a solid forecast for steady growth."
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