Hyperdynamics Favorably Settles Lawsuits over Louisiana Operations
Hyperdynamics says that settlements have been reached for two lawsuits over production operations in northeast Louisiana. The settlements pertain to federal court case number H-06-0746, filed in the United States District Court for the Southern District of Texas, Houston Division and case number 2006-22135 in the 189th Judicial District Court of Harris County, Texas. Pursuant to the agreement, the Company will receive back a 30% working interest in its Norris/Kelly leases, located in northeast Louisiana that it sold back in 2005 for $1,650,000. The company will issue 30,000 shares of its common stock and 3,480,000 warrants with for Hyperdynamics restricted and unregistered common stock with an exercise price of $4.00 per share. An independent third party estimate of value for the consideration to be paid by the Company was determined to be between $750,000 and $1,350,000. The actual realized value will only be determined by the future fair market value of Hyperdynamics common stock. After all the transactions have been completed, the company plans to file an 8K(s) explaining more of the details. The Company continues to work on improving its domestic production in northeast Louisiana and management expects this settlement will enhance cash flow from producing wells on the Kelly lease and give it full title to one of its top drilling targets on the Norris Lease.
When asked to comment, Mr. Jack Manning, spokesman for Trendsetter Investors, LLC responded by saying, “We have resolved our differences with Hyperdynamics on a basis which is favorable to both parties. Many of our members are long-time HDY shareholders and are familiar with the tremendous potential of their Guinea project. This resolution allows us to participate in that opportunity and we look forward to again supporting them in that effort.”
Kent Watts stated that, “the settlements provided a way to increase the long term position in Hyperdynamics’ stock, yielding a stronger upside potential. In the near term, this clears the way for us to proceed with oil production deals we have lined up over the last year, giving us the opportunity to quickly enhance our production revenues and expectations for bottom line profit. We hope to have more about our domestic production plans in the near future.” He further stated, “We are also happy to be free of distractions away from our business plan focus for domestic production growth and our simultaneous exploration of the largest offshore oil and gas concession in West Africa.”
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