Hyperdynamics Falls on Rising Guinea Well Costs: Dallas Mover
January 31, 2012, 6:47 AM ESTBy Benjamin Haas
Jan. 30 (Bloomberg) -- Hyperdynamics Corp., an oil and natural-gas explorer operating offshore Guinea, declined as much as 8 percent after it said rising drilling costs at its Sabu-1 well adversely affected liquidity.
Hyperdynamics fell 3.6 percent to $3.25 at 12:17 p.m. in New York. Earlier, shares declined as much as 8 percent.
“The unexpectedly high cost of the Sabu-1 well has adversely affected our cash position and liquidity,” the Houston-based company said in a filing with the U.S. Securities and Exchange Commission. The company warned there may be additional drilling delays that could further damage its finances.
Hyperdynamics holds 77 percent of the Sabu-1 well and the remaining 23 percent is held by a subsidiary of the Korean National Oil Corp. Whether the company will drill a planned second exploration well at the site depends on whether it can accumulate the cash it needs to proceed, it said.
--Editors: Susan Warren, Tina Davis
To contact the reporter on this story: Benjamin Haas in New York at bhaas7@bloomberg.net
To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net
