SCS Completes 60% of New Seismic Acquisition Offshore Guinea

HyperDynamics' energy subsidiary, SCS Corp., has completed 60% of the planned 4,000-kilometer 2D seismic acquisition on the company's concession offshore in the Republic of Guinea, West Africa. The current acquisition program commenced in late September and is progressing ahead of schedule. Partial data from the program has been flown from Guinea to Houston to begin immediate analysis.

The current acquisition program targets a specific quadrant of the concession and was designed using the results of the seismic analysis work performed by SCS on the data acquired in 2002. Last year's program identified many significant direct hydrocarbon indicators (DHIs) on a major delta that contained sediments up to 36,000 feet thick and forming a "fan" across a 150-mile coastal perimeter. The features within the delta suggest that multiple pay zones exist and are analogous to formations that produce oil and gas in deltas worldwide. It is expected that the results of the 2003 work program will provide the necessary information to identify the most prospective sites in the target quadrant. The next step would be to pinpoint a focused 3D seismic acquisition program. Neil Moore, president of SCS, stated, "Once we get to the 3D analysis stage, our processing and intense modeling should lead quickly to our drilling program. Technology has advanced to the point to where hydrocarbons are located, mapped, analyzed, and modeled extensively on the computer long before a well is drilled. The ongoing analysis of our seismic data is giving us an exciting picture of vast potential within the concession."

Kent Watts, chairman and CEO of HyperDynamics, said, "As we take each progressive step we are continually building shareholder value. It is important to note that the stock market is showing great interest in small companies that have foreign-based oil and gas concessions." Watts continued, "Good examples of this market support include Ivanhoe Energy. Since the beginning of September, their stock price appreciated over 225% based primarily on the news of their 900,000-acre block concession in China. Their company currently trades at close to a billion dollar market cap. Another example continues to be Environmental Remediation. ERHC has minority working interests in offshore West Africa. They continue to trade at a market cap of over $190 million. It appears that both these companies could be greatly undervalued in relation to their underlying assets. In comparison, we have a 16,000,000-acre concession under exploration and our stock trades at a market cap of $44 million. With our exploration work continuing so nicely, we have plenty of room for significant price appreciation."

Our Privacy Pledge

Most Popular Articles
Related Articles

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours