SCS Completes Reprocessing of Gulf of Guinea Seismic Data

HyperDynamics' subsidiary, SCS Corp., has completed preliminary evaluations of a new sector of its 16-million-acre concession offshore the Republic of Guinea, West Africa. In 2002, several regional lines of seismic were acquired and recently reprocessed revealing a whole new sector, adding to previously announced potential for commercially viable hydrocarbons offshore Guinea.

It was reported by SCS geo-experts that near the edge of the Guinea continental shelf, within the ancient Guinea Delta identified earlier, three important zones exist at depths between 12,000 and 15,000 feet below the ocean surface. From preliminary analysis, it is believed that there are substantial shale deposits, source rocks for oil and gas, and turbidites representing porous sands that typically form reservoirs holding petroleum. SCS' geo-experts believe this is the case in Guinea as is also the case in many areas of the world containing large hydrocarbon reserves. There is also indication that the turbidites were laid down between deltaic shale deposits in strata hundreds of feet thick. It appears that the sands were carried by currents over the edge of the ancient shelf from mountainous coastal wetlands. It is also believed that very large buried channels indicate that major rivers were present. These turbidite zones cover an area beginning 75 miles from the Guinea coast and extend to the current shelf edge approximately 100 miles offshore.

This new information was revealed by analyzing data collected by SCS in 2002 and reprocessed recently, revealing more clearly these massive structures along the ancient shelf. The structures are dipping toward shore over 20-25 mile distances between faults. This "reverse dip" is thought to trap and restrict the flow of petroleum out of the faulted blocks. After reaching a crest at the shelf edge, the strata then rolls over in the opposite direction toward the Atlantic basin.

Neil Moore, president of SCS, stated, "Computer processing technology capable of bringing forth high-resolution stratigraphic features has identified these turbidite sands present over and around the structures." Moore continued, "My calculations show that the zones are capable of holding billions of barrels of oil and significant amounts of associated natural gas. This new prospect, which is one of many being investigated in the area, is in addition to SCS' current studies reported earlier this month. We are genuinely excited about what has been revealed thus far and are planning to perform full exploration operations on this new prospect in early 2004."