Hyperdynamics announced that, as part of its plan for improved liquidity, it has succeeded in selling its oil assets in Louisiana. On April 1, 2009 the company entered into an agreement with Claude Rabb of Rabb Resources and Rabb Contracting LLC (the Operator of its producing leases in Louisiana) to sell 100% of its 85% working interest in all its oil leases and production equipment in Louisiana. As reported in its 8-K filed with the SEC yesterday, the total sales price was $2,670,000 with $1,030,000 to be paid between April 21, 2009 and May 7, 2009, then the remaining purchase price to be paid in equal installments on or before August 7, 2009 and November 7, 2009.
In March, Hyperdynamics was notified of deficiencies regarding certain continued listing requirements for the NYSE AMEX LLC exchange. In a press release dated March 23, 2009 the company explained that it will be submitting a plan by April 16, 2009 to regain compliance. In the release, the company outlined several actions and possible events that would help with its plan. Number three on the list was additional operational cost reductions and number five was a sale of working interest in its domestic oil properties. The company's management believes that the proceeds from this sale put in place the cornerstone for a solid plan for regaining compliance with stock exchange requirements.
When asked to comment, Hyperdynamics' Chief Executive, Kent Watts stated, "With the sale of our Louisiana oil assets, we are solving critical financial issues without diluting shareholders. At the same time our efforts to attract joint venture and/or financial partners for our Guinea project remain focused and ongoing. Due to our specific circumstances, this sale was an important and timely achievement. Considering our top priorities and objectives, only a sale of working interest to a joint venture partner for offshore Guinea would be better."
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