Hyperdynamics Severs History With USOil, Realizing Positive Disposition of Lawsuit.Guinea's National Assembly to Consider "Project of Law" This Week HOUSTON -- Hyperdynamics Corporation (AMEX AMEX See: American Stock Exchange :HDY HDY Hat Yai, Thailand (Airport Code) HDY Handy (German slang for mobile phone) HDY Heavy Duty ) announced today that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , SCS Corporation has realized a positive disposition of its lawsuit against USOil Corporation (USOil). The case, which was filed July 29, 2005, was dropped after USOil made admissions before the court regarding the old and now defunct 2002 Production Sharing Agreement Production sharing agreements (PSAs) are used primarily to determine the share a private company will receive of the natural resources (usually oil) extracted from a particular country. (2002 PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. ). The admissions effectively sever any and all ties Hyperdynamics once had with USOil in conjunction with the old agreement that Hyperdynamics once operated under for oil and gas exploration and production offshore the Republic of Guinea. On September 22, 2006, Hyperdynamics signed a new 2006 Production Sharing Contract (2006 PSC (Public Service Commission) Same as PUC. ), a contract which USOil has no interest in. Also, as a result of these admissions, the Company's legal counsel has determined that any previously reported contingent liabilities pertaining to the old agreement are now gone completely. The Company's management remains intently focused on its work under its 2006 PSC. It was previously reported on May 22, 2007 that Guinea's National Assembly called for a special session to begin this week to complete its "Project of Law" process for the 2006 PSC. Entirely at their leisure and discretion, the elected representatives of the National Assembly use this legislative process to study major contracts and fully understand the impact on their country. With a positive vote by a majority of the members, the 2006 PSC would become a new "Project of Law", while remaining in accordance with the existing Guinea law known as the 1986 petroleum code, just as it is today. This contract represents the largest oil and gas exploration concession offshore West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. . About Hyperdynamics Hyperdynamics Corporation provides energy for the future by exploring and producing sources of energy worldwide. The company's internationally active oil and gas subsidiary, SCS Corporation, owns rights to explore and exploit 31,000 square miles offshore the Republic of Guinea, West Africa. HYD Resources Corporation focuses on domestic production in proven areas. To find out more about Hyperdynamics Corporation, visit our Website at http://www.hyperdynamics.com. Forward Looking Statements Statements in this news release are "forward looking" as defined by the U.S. Securities and Exchange Commission and are based on expectations, beliefs or projections that are subject to numerous risks and uncertainties. Investors are cautioned that these statements are not guarantees of future performance, and actual results could differ materially. Please refer to "Risk Factors" in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the SEC. HDY-IR |
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