Hyperdynamics Corp.’s wholly-owned subsidiary, SCS Corp.
, has signed a tri-party Protocol with the government of Guinea and Sapetro. The objective of the protocol is to drill the upcoming Fatala well in the most effective way, according to Petroleum Africa.
The terms of the protocol include the determination on how to move forward in case of a discovery with the drilling of the Fatala well, and with unanimous agreement, to proceed with drilling an optimal number of follow-up exploration wells within the terms of the Production-Sharing Contract (PSC) Second Amendment, PR Newswire informed.
Additionally, Sapetro and SCS are to make all reasonable efforts to negotiate and finalize all transaction documents for Sapetro’s entry into the project in conformity with the PSC as amended. The transaction documents are expected to be submited for the approval to the government no later than mid-April.
Upon completion of the documents and receipt of the requisite approvals by the government, Sapetro will provide the $5m Security Instrument as required under the PSC Second Amendment.