SCS Expands Seismic Program Offshore Guinea

HyperDynamics' energy subsidiary, SCS Corporation, has implemented a plan to greatly expand the current acquisition program offshore in the Republic of Guinea, West Africa. The expansion is contemplated to grow from the current 4,000km to as much as an additional 20,000km of new 2D seismic data. The current 4,000-kilometer acquisition program commenced in late September and will be completed this month. The existing program targets a specific quadrant of the concession and was designed using the results of the seismic analysis work performed by SCS on the data acquired in 2002. Neil Moore, President of SCS stated, "The results to date have convinced us that we have a unique opportunity and the economics appear favorable to negotiate the acquisition of an additional 20,000km of new 2D seismic data. This will give us a grid over the entire offshore concession and will allow us to begin evaluating other areas of the concession while at the same time we continue to focus in on drilling prospects within the initial quadrant. As we move forward and are able to drill our first well, we expect that this additional coverage will help us support the characteristics of a working petroleum system or systems as the case may be."

Kent Watts, Chairman and CEO of HyperDynamics, said, "Our management committee has determined that the timing is right to expand our data acquisition. The oil and gas industry economics and market valuations are increasingly favorable for small E&P companies that hold foreign concessions, especially during these times of tight supply and growing demand. It is important to note that the capital markets have woken up to these facts as money is flowing into small aggressive companies that have the potential to supply the hydrocarbons our country desperately needs." Watts continued, "Environmental Remediation has minority working interest offshore West Africa and just announced that almost $500 million was bid on blocks where they have their interest. Ivanhoe Energy, which has a 900,000-acre block concession in China, has seen their stock soar on huge volumes while raising millions of dollars for capital expenditures. Far East Energy, also with a concession in China, has seen a 200% rise in their stock while raising millions in new capital as well. We believe that as we are able to effect this expanded acquisition plan, we will be continually enhancing our shareholders' value. As the market place sees great value in our industry, we are moving aggressively to maximize this 16 million-acre asset as now is the time for us to be aggressive in taking the next step towards our goal of drilling our first well sooner rather than later."