Hyperdynamics Corporation announced that Ryder Scott Company, Petroleum Engineers has completed an interim report on the Company's reserves in Northeast Louisiana. The report came in advance of the June fiscal year end and allows the Company to report this substantial progress to its shareholders in advance of final year end reporting.
In an SEC compliant format, Ryder Scott disclosed that the Company's Proved Developed Producing (PDP) oil reserves have markedly increased to 121,513 barrels as of February 29, 2008. This PDP does not include all new zones recently established on its leases since February or the reserves from the newly producing Big Island field. Over the next several months, the company will also be developing plans to significantly increase other categories of proved reserves including Proved Developed Non Producing (PDNP) that is currently behind pipe and Proved Undeveloped (PUD) that both require further development plans to calculate.
The Company's progress has been made in spite of the Mississippi River's second highest flood level in history. With the challenges of the River, production slipped slightly to approximately 3,500 barrels sold in March but is expected to again be on a record setting trend for April, May and June. Once the river subsides it is expected that optimized production will quickly surpass 300 barrels per day of production. This will again put the company on a fast track to its current stated goal of 500 barrels per day.
When asked to comment, Kent Watts, the Company's Chief Executive said, "We continue to strengthen our company with domestic oil reserves and production as our West African exploration activity accelerates forward. Our strategy stays intact and is strengthening along these two fronts. This interim report by Ryder Scott reflects great progress on building our reserve base, but when you realize that there are no PDP reserves calculated or yet reflected from our new Deville #1 well and the associated Big Island Field, we are still expecting a substantial increase to these new reserve numbers over the next few months. We are extremely pleased with this progress."
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