Share prices for Hyperdynamics Corporation (AMEX: HDY) skyrocketed just over 14 percent today after the company announced that its wholly owned subsidiary, SCS Corporation, has “realized a positive disposition of its lawsuit” against petroleum-marketing firm USOil Corporation.
The case, which was filed on July 25, 2005, was dropped after USOil made admissions before the court regarding the old – and now defunct – 2002 Production Sharing Agreement. According to the press release, these admissions “effectively sever any and all ties Hyperdynamics once had with USOil in conjunction with the old agreement that Hyperdynamics once operated under for oil and gas exploration and production offshore the Republic of Guinea.”
As an energy exploration and source production company, Hyperdynamics has an active footprint on the global energy community. The company’s internationally active oil and gas subsidiary, SCS Corporation, reportedly owns rights to explore and exploit 31,000 square miles offshore the Republic of Guinea, West Africa.
According to the release, Hyperdynamics management team remains “intently focused” on its work under its 2006 Production Sharing Contract (PSC), and has in fact called for a special session this week to complete its “Project of Law” process for the 2006 PSC.
“Entirely at their leisure and discretion, the elected representatives of the National Assembly use this legislative process to study major contracts and fully understand the impact on their country,” the release stated. “With a positive vote by a majority of the members, the 2006 PSC would become a new “Project of Law”, while remaining in accordance with the existing Guinea law known as the 1986 petroleum code, just as it is today.
This contract represents the largest oil and gas exploration concession offshore West Africa.
In response to the news, stock prices for Hyperdynamics rose steadily over the course of the day, climbing from an opening price of $2.57 per share to $2.85 a share by mid-afternoon, with a daily high of $3.08.
