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Next Wednesday, March 10th at 12PM
EST, 9AM PST, the second monthly OTC Journal/Trilogy Capital Online
Micro Cap Forum will be broadcast. We have made some improvements in
the format of the presentation I believe you will find valuable.
This month, three companies followed
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Systems has been quiet over the last couple of months, but is due to
start delivering some corporate events. I strongly recommend you budget
30 minutes to learn about each of these companies.
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HyperDynamics
(OTC BB: HYPD) Unveils Strong Seismic Results |
|
HyperDynamics was out with
news after the close on Friday. The company is starting to disclose some
of its findings from the recent 4,000 kilometer 2D seismic readings within
its concession off the coast of the Republic of Guinea. The concession
and the delta formation are circled in red on this aerial photograph.
The news release reveals seismic
results indicate the concession could be extremely rich in hydrocarbons.
While I am certainly no geologist, I have spoken with an expert in the
field, and Friday's disclosure bodes well for shareholders. Members of
the OTC Journal who have some knowledge or expertise in this field
are invited to comment- I will publish both positive and negative comments
in a future edition. Email editor@otcjournal.com.
According to Friday's news release,
the 2D seismic results have uncovered the presence of 25 "Gas Seeps" within
the 4,000 kilometer study. Apparently, a gas seeps occurs when there is
so much natural gas it literally bubbles up from the ocean floor.
Shareholders take note. The expert
I consulted suggested the following possibilities:
-
The presence of "Gas Seeps" suggests
the possibility of a massive find, thereby reducing shareholder risk.
-
In previous disclosures, Hyperdynamics
revealed it's development schedule called for the first test wells to be
drilled in late 2004. The presence of gas plumes has the potential to accelerate
the entire process. Sophisticated detection devices can be inexpensively
deployed to measure the actual amount of gas seeping from the surface,
which could prove the presence of exploitable resources and speed up the
commercial development of the region.
Here's a longer term look at the
performance of HYPD as measured from last July's surge off the $.30
level. The stock started to behave well in conjunction with the market
recognizing the upside potential of the concession off the Guinea coast.
As you can see, since making its
first run over the $2 level last July, the stock has been grinding up and
down between $1.50 and $2.00. The stock has eclipsed the $2 mark four times,
only to be repelled back into the $1.50 range before rebounding.
The company is starting to unveil
the results of the recent seismic studies, and based on the company's claims
it seems likely there will eventually be a major development in the concession,
which could mean millions of dollars in profits over the course of many
years.
There are still unknowns ahead. Eventually,
there will have to be a partnership with a major company. HyperDynamics
does not have the resources to develop the concession. However, the greater
the evidence, the stronger the bargaining position. Therefore, it seems
the company is making the right move gathering all the seismic data and
evidence on its own nickel. This will help maximize shareholder value over
the long run.
Perhaps Friday's news will transform
the $2 level from resistance to support.
It's tough to predict where this
stock could end up if the concession is developed. Much depends on the
eventual arrangement with a major oil development and exploration company.
Risk factors associated with the political climate in West Africa still
exist.
According to the last 10Q filing,
there are now 31 million shares issued and outstanding, giving the company
a $62 million market valuation at the $2 level. A major oil find will eventually
make $62 million a distant memory. With commercial development, long term
investors should be handsomely rewarded for taking a risk in the early
stages.
Here is the complete text of Friday's
news release for your review:
| Press Release Source:
HyperDynamics Corp.
HyperDynamics SCS
Reports Excitement with Emerging Positive Results of Seismic Processing
Friday March 5, 4:00 pm
ET
Geoscientists Report 25 New Locations
Believed to be Gas Seeps on the Sea Floor Offshore Guinea
HOUSTON--(BUSINESS WIRE)--March
5, 2004-- HyperDynamics Corp. (OTCBB: HYPD - News) announced today that
their wholly owned energy subsidiary SCS Corp.'s continued reprocessing
of the 2D seismic acquired in late 2003 is on schedule at Spectrum Energy
and Information Technology Inc. Significant information is emerging to
support the viability of previous targets and the ongoing work is continuing
to reveal many new targets. As the processed data is emerging and interpretation
continues, the exploration team's excitement continues to grow.
When asked to comment,
Neil Moore, president of SCS, stated, "Bob Bearnth and Dr. Hong both agree
that the latest processed data confirms that numerous surface seeps over
the concession have not only created physical anomalies on the sea floor,
but show conditions that indicate there are gas plumes in the water. We
believe this is indicative of the presence of hydrocarbons." He further
stated, "From the new seismic we have recently pinpointed 25 additional
indications of gas seeps spread out over the concession as we continue
to map locations of potential drilling targets. Visible breaks in the sea
floor associated with acoustic reflections in the water and fault chimneys
that include adjacent charging sediments altogether support our interpretation
for these gas seeps. We have also correlated these new points of interest
with fault lines previously revealed in satellite photos covering prospective
areas. This new information together with previous AVO analyses performed
by Dr. Hong strongly indicates the existence of gas. There is now strong
merit in performing the necessary work to gather physical evidence in proof
of our interpretation. We look to achieve this very soon."
Kent Watts, chairman
and CEO, said, "Previously obtained evidence of hydrocarbons is being corroborated
and enforced as new potential drilling targets are emerging almost daily.
As we are continuing to receive the necessary financial support, we could
not be happier with the interpretive results of our data thus far and can't
help but be overwhelmingly optimistic about the future."
About HyperDynamics
HyperDynamics is a provider
of integrated information technology services. HyperDynamics' wholly owned
subsidiary, SCS Corp., develops geophysical data services for the oil and
gas industry including its integrated SCS NuData(SM) services while its
No. 1 focused priority is exploring and developing new regions of Africa
for energy production.
Safe Harbor Statement
under the Private Securities Litigation Reform Act of 1995: The statements
contained herein that are not historical are forward-looking statements
that are subject to risks and uncertainties that could cause actual results
to differ materially from those expressed in the forward-looking statements,
including, but not limited to, certain delays beyond the company's control
with respect to market acceptance of new technologies or products, and
other risks detailed in the company filings with the Securities and Exchange
Commission.
--------------------------------------------------------------------------------
Contact:
HyperDynamics Corp., Houston
Kent Watts, 713-353-9400
kent@hypd.com
or
Stock Enterprises
Jim Stock, 702-274-5400 (Investor Relations)
stockenter@aol.com
--------------------------------------------------------------------------------
Source: HyperDynamics
Corp. |
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