HYD Resources Completes 10th Well & Finds Natural Gas in Louisiana

Hyperdynamics' subsidiary, HYD Resources, has completed its 10th oil well in LaSalle Parish, Louisiana. Based on an independent geological study, as previously reported, this particular horizon is calculated to have approximately 1 million barrels of oil in place. The wells have been drilled and completed over the last few months as part of HYDR's plans to ramp up its expected oil production. In the process, there was a nice surprise to discover substantial natural gas, in addition to oil. The company immediately had the gas tested and it was reported to be of high quality.

HYDR is now working with a natural gas pipeline company to provide the engineering requirements necessary to start selling its gas simultaneously, along with its oil. While the company has been completing the first 10 wells of 14 that are planned for the property, it has also been installing and renovating the production facilities to allow for optimum flow rates. This work is all expected to be completed shortly.

HYD Resources' plans are to develop and produce additional zones on the property, and in other locations close by. Sam Spears Jr., president of HYD Resources, commented, "These wells fit our strategy perfectly. They are low-risk shallow production that we can drill, develop and operate with our own in-house crews and equipment. The more we drill, the better our efficiencies and our economies of scale become."