PGS Completes Phase I of Seismic Work for SCS

Hyperdynamics reports that PGS has completed phase I of the seismic interpretation contract with its energy subsidiary, SCS Corporation. This contract was originally awarded for 3rd party interpretation services to Petroleum Geo-Services (PGS) on Aug. 6, 2004. On Aug. 20 the PGS team gathered all of their information and interpreted data and traveled back to London to complete their work. Over the next several weeks they will be completing their analysis and final reports. In the process of completion, they plan to integrate other West African known geological information as well as the specific results expected shortly from SCS's geochemical coring program being performed by its contractor TDI-Brooks International Inc.

On Aug. 19 a preliminary report was given to SCS management and Hyperdynamics' CEO. When asked about the content of the preliminary report, Robert Bearnth, EVP of Geology, said that "it is very nice having an independent geological team corroborating our findings. The consensus now is that there is everything required in the region to support commercially viable hydrocarbons. All information which we have reported on before is being supported, even to the extent of agreeing wholeheartedly that there is indeed a working petroleum system throughout the concession. This system includes significant hydrocarbon sources, structures, fault migration paths, reservoir and potential traps. We also have conclusive evidence of three ancient deltas with very thick sedimentary deposits. There is additional consensus that gas seeps reported on earlier are of hydrocarbon origin."

Mr. Kent Watts, CEO for Hyperdynamics, stated that "PGS's preliminary report could not have been more positive. All of our exploration work is continuing to grow our asset value. It is mind boggling to me that this value has not yet been reflected in our share price. However, I am confident that our consistent progress will ultimately correct this market disparity."