Hyperdynamics Makes Progress in Guinea Talks

Hyperdynamics reports that company executives for the last two weeks have conducted numerous high-level meetings with government officials in the Republic of Guinea as a result of an official invitation received from Prime Minister Celou Dalein Diallo.

Kent P. Watts, chairman and CEO of Hyperdynamics, was joined in Guinea by the company's vice president of Guinea affairs, Famourou Kourouma, executive vice president of operations, Harry Briers, and SCS's vice president and chief geologist, Robert Bearnth. The executives have been involved in a series of meetings with governmental officials beginning with the head of state, his Excellency President Lansana Conte. In addition, multiple meetings discussing the hydrocarbon development program of Guinea have been held with the minister of the mines and geology, Ahmed Tidiane Souare and his advisors.

A meeting with Jackson McDonald, the United States ambassador to Guinea, was held to update the United States government as to the progress of this vitally important project.

In addition, preliminary discussions concerning logistical infrastructure have been started with several top level business executives in the country's private sector, including Guido Santullo, president and director of group for Sericom Guinee, the largest construction and public roads contractor in the Republic of Guinea.

In a prepared statement on behalf of management, Watts stated, "These meetings have taken place in preparation for the restart of our drilling program. The government has communicated in writing their clear desire to continue our partnership through a new agreement. Their desire is that a new agreement be initiated through an open and transparent democratic process. Considering the challenges we have faced in the past, Hyperdynamics agrees with this approach. We would like shareholders to know that although this process is time consuming, it is laying a strong foundation for our long-term relationship. We realize our shareholders are anxiously awaiting news about our drilling program. Even though we currently hold the drilling rights under our 100% farmout of the 2002 Production Sharing Agreement, management feels that the time and effort needed to forge this new agreement will be well worth it. We are pleased and proud to be working together with the very top leaders of the Republic of Guinea through this diligent process. We thank shareholders for their continued support."