HyperDynamics Delivers Revenues

HYPD was out with news this morning concerning their subsidiary, HYD Resources. This subsidiary is developing some small wells in the Lousiana and owns three drilling rigs which are in high demand.

It seems they have measured the proven reserves in 1.7% of the property they own in the gulf, and as it turns out they have about $3 million worth of oil in this mere fraction of the property.

This news is not the Holy Grail we are all waiting for on their potential multi billion dollar discovery in West Africa, this is another example of news which mitigates the risk of owning the stock. This wells will allow the company to generate cash flow for the first time in its history, therby allowing them to keep moving forward with the West African concession and not raise additional capital in the interim.

Technically, the stock is holding up beautifully. This chart suggests a major event could lead to much higher levels, and the stock is begging to be accumulated.

I put a lot of stuff in this one. You can see the uptrend line which began at the August low. That trend remains intact. Note the blue horizontal support line- there seem to be buyers at that level. I have also included the 50 day (blue) and 200 day (yellow) moving averages. The stock is just below the 50 day, but solidly above the 200 day. It probably wants to drift back above the 50 day right now.

This is a stock that wants to go higher if the company can deliver a major breakthrough. The market has kept it at its current level for four months. If you believe, accumulate.

16 thoughts on “HyperDynamics Delivers Revenues

  1. It’s a wild hypothesis, I know, but could it be that these guys are trying to build themselves up so that they can attempt to exploit the African concession on their own? It sounds preposterous at first, but their recent moves and their deliberate pace in Africa suggest that they are opening up the possibility of going it alone. It’s too bad I couldn’t slip out to Houston for today’s meeting. I’d be asking questions along those lines.

     

    Editor: I don’t believe this company can possibly go it alone. They are going to have to have a major development partner with very deep pockets to get this thing rolling. I believe an announcement of a partner is what the stock needs to get it going to the next level. This company doesn’t have either the capital or the expertise to drill offshore test wells off the coast of West Africa.

  2. These small oil based companies have the potential to increase rapidly with the right news. Oil is being used up and new discoveries equate to revenue. This one seems to be worth a small risk and could turn out to be a big reward, hopefully.

     

    Editor: Agreed

  3. Will this company attempt a reverse merger to achieve its’ goals… and will that mean a share split at some stage???

     

    Editor: I don’t believe so. There aren’t that many shares issued and outstanding. You usually don’t see them until they issue in the range of 1/2 billion shares.

  4. What is with this sudden volatility? Was there news, (or lack thereof) at the meeting?

     

    Editor: I think this is just a technical pullback. Check today’s BLOG entry for my thoughts.

  5. what tentative price target are you anticipating, upon the announcement of a pact with a major partner. I Realize that it is difficult to assess the potentila value without knowing the terms of the agreement.

     

    Editor: I believe it would depend on who the partner is and how the arrangement is structured- a wild guess would be double where the stock is trading now.

  6. Is this pullback the result of the lack of news/ pressreleases, or information negatively pending.

     

    Editor: Check today’s BLOG entry please.

  7. What is happening to this stock, a bit concerned here, or should it be a great buying opportunity, confused?

     

    Editor: Check today’s BLOG entry please.

  8. certainly looks like hypd is “the mother of all scams”

     

    Editor: Check today’s BLOG entry please.

  9. Three weeks ago the price was holding a sidways pattern above the $3 support level and way above the 200 day average. Why the sudden decline, especially the last few days? Has there been some negative news?

     

    Editor: Check today’s BLOG entry please.

  10. What is going on with this stock/ Looks like it broke support which is not good news. What was said at the meeting, is it effecting the stock price? Getting a little nervous.

     

    Editor: Check today’s BLOG entry please.

  11. We seem to be in a free fall, and on high volume. Any comments?

     

    Editor: Check today’s BLOG entry please.

  12. I just placed a buy order for 2.26, looks to me like its time for this one to pop. Hope my speculation is better for this one than it was for ZAP. Question? When they speak of the FLOAT, is that the remaining shares that’s left from the issued shares? Thanks, a bit confused on what the float truly arrives from!!

     

    Editor: The float is simply the number of shares the public can buy or sell. It can go up as insiders sell, companies issue shares to finance, and employees exercise options.

  13. YOU GENTELMEN DON;T SEE THE BUSINESS THROUGH YOUR TIES. THIS IS THE BEST MANAGED COMPANY I;VE SEEN IN THE LAST 15 YEARS.

     

    Editor: Thanks for the contribution.

  14. What is your opinion about the latest news from HDY? Are they hedging their bets or is Louisiana just that successful? Any more updates?

     

    Editor: I’m expecting some updates out of them fairly soon. Louisianna seems fairly promising in that they have announced they are drilling 75 wells. I’d like to see some progress on West Africa, but I don’t detect any sense of urgency on their part.

  15. just want more of the pot

    Editor: I don’t understand this comment, but nevertheless here it is.