Hyperdynamics Corp. has entered into a US$4.5 million master service agreement (MSA) with oilfield services giant Schlumberger to provide drilling services for the Fatala-1 deepwater exploration well planned for Q2 2017, offshore the Republic of Guinea.
The MSA between Schlumberger and Hyperdynamics subsidiary, SCS Corp., will see Schlumberger as the primary provider of services to drill the Fatala-1 well, including: wireline logging; measurement while drilling, logging while drilling and similar downhole drilling services; drilling fluids and solids control services; downhole cementing services; mudlogging services; drilling bits and reamers; and contingency fishing equipment and services.
"With the signing of this agreement with Schlumberger, we now have the critical equipment and most of the drilling services contracts in place to enable us to begin drilling the Fatala-1 deepwater exploration well this spring," said Ray Leonard, Hyperdynamics president and CEO.
"With Schlumberger as integrated project manager for drilling services -- and with Pacific Drilling providing a modern deepwater drillship with an experienced crew -- we have assembled a world-class contingent of equipment, services and highly experienced manpower," Leonard said.
Pacific Drilling’s Pacific Bora drillship is expected to arrive shortly before the target spud date for the Fatala-1 well. Hyperdynamics' contract with Pacific Drilling will enable the company to include as many as three additional wells.
"We are also advancing our discussions with several global oil companies that could farm into a significant portion of our project working interest, provide additional technical expertise and share the project costs and risks," Leonard said.
Hyperdynamics said it also signed a letter of intent (LOI) to farm out a 20% interest in the Guinea concession to South Atlantic Petroleum Ltd. (SAPETRO). Under the LOI, SAPETRO will pay for 40% of the Fatala-1 well up to a total well cost of $50 million, and it will pay its proportional 20% share of any cost above $50 million.
The company has also working on finalizing contracts for additional support services, including offshore supply vessels, helicopter transportation services and remotely-operated underwater vehicle supply and services.