HyperDynamics Sees Good Results from Guinea Seismic Data

HyperDynamics' subsidiary, SCS Corporation, has reached a major milestone with the completion of the reprocessing work performed by Spectrum Energy and Information Technology, Inc.

SCS's state of the art data acquisition and processing work on 5,000 kilometers of digital long-array seismic has been completed together with initial interpretations by SCS's geo-scientists. This milestone represents a culmination of work that began offshore the Republic of Guinea, West Africa in early 2002.

Neil Moore, President of SCS, stated, "Prior to our work, the basic view of geologists worldwide was that the area offshore Guinea was considered to lack petroleum potential. We believe we have evidence to completely turn that view upside down. To date, we have uncovered four (4) highly prospective trends that are being mapped to help us pinpoint numerous potential drilling prospects. Our work increasingly supports the viability of commercial hydrocarbons offshore Guinea. The existence of gas is now confirmed as seeping into the ocean in 'plumes' at significant locations within the concession. We have also observed that the surface trends that have been found are consistent with fault 'chimneys' on the latest seismic coverage. These 'chimneys' reach depths that are favorable for oil. Furthermore, the subsurface features being mapped tie exactly with surface features of satellite photos reported on earlier. It is genuinely exciting to watch this picture being painted frame by frame."

SCS's work provides clear evidence of major Delta Fans in extensive trends offshore Guinea. Such Deltaic features around the world are normally rich in deposits favorable for hydrocarbon reservoir development. In addition to the gas seep trends that are in 50 to 100 meter water depths, SCS geoscientists have evidence that rapid sedimentation of major tributaries across the Delta has weighted the outer shelf. Robert Bearnth, Senior Vice President of SCS, stated, "This has created massive residual structures at the shelf edge. These features are set along the current Guinea continental shelf in an extended semi-circular ring. The seismic data indicates that a carbonate reef developed at an earlier age in this zone. It is now situated 4,000 meters below the surface along at least 50 kilometers of an ancient shoreline. The indications are growing that there are many traps at different ages and more than adequate source rock to create major sources for hydrocarbons."

Kent Watts, HyperDynamics' Chairman and CEO, said, "We now have an abundance of quality data that geoscientists can sink their teeth into. We believe that the processing, reprocessing, analysis and interpretation of this data will be ongoing and continue to benefit us for years to come. This major accomplishment lays the foundation necessary for us to move forward toward drilling the first exploratory wells offshore Guinea."