SCS has established with its partner, USOil, Guinea Hydrocarbon Resources Corporation (GHRC) to fulfill the exclusive Royalty and Production Sharing Agreement with the government of Guinea and will serve as the operator for the entire area offshore Guinea. Under this agreement terms are laid out for exploration activities, drilling rights, and production revenue sharing.
Robert Bearnth, Executive Vice President of SCS, said, "According to the February edition of Offshore magazine, the west coast of Africa is the hottest offshore area in the world with major international oil companies such as TotalFinaElf, Amerada Hess, ExxonMobil and British Petroleum working in the region. We are ecstatic to have the largest block in this play."
GHRC is now actively presenting its Guinea Offshore Exploration and Production venture to qualified companies. Collectively, participants are expected to pay a minimum of $10MM to fund the exploration phases of the agreement. After the exploration phases are complete, GHRC will retain an ongoing interest in all production of the entire offshore area.
Neil Moore, President of SCS, stated, "We are excited about the opportunity in Guinea, especially in light of the billion barrel oil discoveries in Senegal to the north and Trinidad to the west. Geology in Senegal and Trinidad correlates closely to offshore Guinea." Moore further stated, "It has taken over 35 years to find the oil deposits offshore Senegal and Trinidad; with the latest HYPD/SCS technology, we see our discoveries developing in months, not decades."
Kent Watts, President and CEO for HyperDynamics, stated, "Our interest in GHRC represents a significant new asset. The attainment of these development rights, together with improving revenues and cash flow from operations, reflects a substantial achievement by our management, which should translate to increased shareholder value. Please continue to watch our forthcoming news for continued progress on this and other business developments."
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