Tullow has reached an agreement for 40% operating interest in Houston-based Hyperdynamics' offshore Guinea concession, the two companies announced on 20 November 2012.
In late October, Tullow expressed interest in joining the concession. Hyperdynamics, through its wholly owned subsidiary SCS Corp., will hold 37% interest in the concession once the deal closes. Dana Petroleum will hold the remaining 23%.
Hyperdynamics said the partnership intends to begin a drilling program to test a deepwater fan prospect by 1 April 2014.
According to the agreement, Tullow will reimburse SCS Corp. $27 million cash at closing for past costs and will carry SCS Corp.'s participating interests share of future expenses up to $100 million, from date of entry into the next exploration period until 90 days after drilling of the well. Tullow said it will also carry SCS Corp.'s costs associated with an appraisal well from the initial exploration well, if drilled, up to $100 million.
Hyperdynamics CEO Ray Leonard said Tullow's exploration success in West Africa makes the Irish company a perfect partner for the concession.
'We believe this agreement with Tullow enhances the future of Hyperdynamics' Guinea exploration program and represents the best opportunity for us to realize maximum potential value for our shareholders as we explore the potential of this large and prospective petroleum basin,' Leonard said.