"This steady progress in operating performance from our domestic subsidiary, combined with revenues we expect to receive within the next several months from the sale of seismic data packages to prospective partners for our Guinea exploration acreage, will significantly enhance Hyperdynamics revenue opportunities," said Kent Watts, Hyperdynamics' Chief Executive Officer.
Hyperdynamics has been steadily improving its Louisiana oil production operations, and a work program currently under way would increase production capacity by roughly one-third from current levels by the end of its March quarter, further enhancing revenue potential.
Fiscal 2006 revenues from Hyperdynamics' domestic subsidiary increased by 279 percent over fiscal 2005, and year-over-year revenues for the first fiscal quarter ended Sept. 30 increased by 274 percent.
"In our current work program in Louisiana, we are highly focused on increasing production from existing properties through well workovers and re- entries - and also on reducing operating costs to drive margin growth," said Jeremy Driver, President of HYD Resources.
"We also expect to drill additional wells this year on existing leases, and we are looking for niche acquisitions that would provide increased redevelopment and in-fill drilling opportunities to further expand our production and help us grow revenues profitably," he added.
Driver noted that HYD Resources' well workover service and production operations now in place in Louisiana have the capacity to handle as much as 10 times its existing oil production volumes with little or no increase in operating overhead.
Hyperdynamics began domestic oil production in the summer of 2004. The company has made substantial improvements in operations and field management over the last year.
"In addition to the progress we are making with HYD Resources in Louisiana, we also continue to move forward with our plans to explore our 31,000-square-mile contract area offshore Guinea in West Africa," Watts said. "This region has some of the greatest oil and gas resource potential in the world, and Hyperdynamics is uniquely positioned with exclusive rights to a vast offshore area - the largest license acreage position in West Africa.
"Seismic studies indicate our acreage has enormous hydrocarbon potential, and we'll soon be announcing a work plan and timetable to bring in partners to help us further evaluate and explore our Guinea opportunity," Watts said.
Hyperdynamics Corporation provides energy for the future by exploring and producing sources of energy worldwide. The company's internationally active oil and gas subsidiary, SCS Corporation, owns rights to explore and exploit significant acreage offshore the Republic of Guinea, West Africa. HYD Resources Corporation focuses on domestic production in proven areas.
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