Hyperdynamics and Dana signed an assignment and a joint operating agreement (JOA) under which the UK-based company acquired a 23% participating interest in Hyperdynamics’ production sharing contract (PSC) with the government of the Republic of Guinea.
The assignment and JOA were made under the December 2009 purchase agreement between Hyperdynamics and Dana. According to its terms, Dana is to pay Hyperdynamics approximately $1.7m for its pro-rata portion of accrued expenses associated with Hyperdynamics’ ongoing 2-D seismic programme and bear a similar share of future costs for the programme.
The closing follows the approval of the assignment by Guinea’s Ministry of Mines, Energy and Hydraulics. Hyperdynamics and the Republic of Guinea are currently undergoing a review of the PSC in accordance with the September 2009 memorandum of understanding.
Upon the conclusion of the review and the effectiveness of any resulting clarifications and amendments to the PSC, Dana is to pay Hyperdynamics an additional purchase price of $19.6m and assume its proportionate share of costs for all operations. Of that figure, Dana will pay $5m in cash and the remaining $14.6m will be paid either in cash or in shares of Dana, at the company’s option.
