Ray Leonard President & CEO

Transcription

1 West Africa - Offshore Guinea - Exploration Ray Leonard President & CEO IPAA October 2013

2 Forward Looking and Other Cautionary Statements This presentation contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding Hyperdynamics Corporation's future plans and expected performance that are based on assumptions the Company believes to be reasonable. Statements preceded by, followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", "may increase", "may result", "will result", "may fluctuate" and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. A number of risks and uncertainties could cause actual results to differ materially from these statements, including without limitation, funding and exploration efforts, fluctuations in oil and gas prices and other risk factors described from time to time in the Company's reports filed with the SEC, including the Company's Annual Report on Form 10-K for the fiscal year ended June 30, Information reported on this presentation speaks only as of today, and you are advised that time sensitive information may no longer be accurate after today. The Company undertakes no obligation to publicly update these forward looking statements to reflect events or circumstances that occur after the issuance of this news release or to reflect any change in the Company's expectations with respect to these forward looking statements. Investors are cautioned that these statements are not guarantees of future performance, and actual results could differ materially. Potential risks include, among other. things, geologic risks, political risks, oil and gas price volatility, uncertainties inherent in oil and gas production operations, government regulation and uncertainties regarding access to capital. 2

3 World Top Two Upstream Successes of the Past 5 Years North American Shale Plays Sub-Sahara Africa Plays Transform Margin +5 BBO West Africa Deep Water +10 BBO East Africa Rift +3.5 BBO East Africa Gas +100TCF 40% of US Oil, NGL & Gas Production by (4.5 MMBOD & 10 TCF gas per year) Discovered Resource Estimates BBO & +100TCF Gas

4 World-Class Potential Offshore NW Africa 37% interest holder of rights to a 18,750- sq-km license area offshore Republic of Guinea in Northwest Africa -- equivalent of 2,500 Gulf of Mexico blocks License area comparable to a petroleum province, not a one-prospect block / contains multiple play types, leads and prospects Prospects are in a virgin basin at the intersection of several prospective exploration trends First deep water well completed in February 2012 showed oil in the basin, setting up further exploration opportunities and securing the concession through 2016 Strong progress since July 2009 under new management and board 40% & Operator 23% 37% 4

5 Hyperdynamics Achievements to Date Build Technical, Financial Capabilities & Prepare to Drill Drill Frontier Basin & Evaluate Farm Out & Explore the Deep Water & Beyond New management team joins Hyperdynamics 10,000 km 2D seismic acquired, processed and interpreted Amended production sharing contract negotiated, signed and ratified Raised $18 million Dana Petroleum joins as 23% partner 1 st Sierra Leone discovery by Anadarko NSAI resource report indicates multi-billion-barrel potential BlackRock joins as 15% investor 7,600 sq km 3D acquired, processed, interpreted, well location chosen Raised $204 million Rig tender completed Sabu-1 spud October, completed February 2012 encountered noncommercial oil shows Successful Farm-out to Tullow for 40% of the total concession interest Incorporate results of Sabu-1 well in geologic model, process and interpret new 3D program Reduce staff and costs consistent with nonoperator status Initiate new drilling program in the deep water and use best efforts to spud in Q French Guiana discovery by Tullow, Sierra Leone discoveries by Anadarko, 1st Liberia discovery by African Petroleum 5 5

6 Interval of Hydrocarbon Shows Gas Shows Oil Shows Interval of Hydrocarbon Shows Gas Shows Oil Shows Sabu-1 Well Geological Results Eocene Sabu-1 Results Paleocene Paleocene Shale Drilled to planned depth of 3,600 meters below water line Met the drilling obligation for Petroleum Sharing Contract for current exploration period Top Cretaceous Campanian Santonian Encountered oil and gas shows during drilling through part of target section Turonian Well logs indicate residual oil (likely the result of failed trap or seal) Cenomanian Sabu-1 Implications Pre-Cenomanian Demonstrates a petroleum system in Guinea Basin Increases chance of success of a deeper water oil exploration program Supports extension of a developing oil trend along Atlantic Margin from Ghana to Guinea Dominantly sandstone Dominantly shale Dominantly carbonate 6

7 Recent Farm-Out Farm-Out In December 2012 Hyperdynamics sold a 40% interest in the concession and will transfer operatorship to Tullow Oil plc Total value to HDY of up to $101 million, including: $27 million up front cash Full carry on the next exploration well up to a total gross well cost of $100 million Additional full carry on an appraisal well, if drilled, up to a total gross well cost of $100 million The Rationale Expertise and exploration success in the Atlantic Margin off West Africa particularly the Transform Margin play present on the Guinea acreage Experience in deepwater production Financial strength needed to explore this large block Availability of suitable rigs to initiate the deepwater drilling Supported by the government of Guinea 7

8 Tullow World Class Operating Partner One of the largest independent oil and gas exploration and production companies in Europe and Africa's leading independent oil company Tullow s Asset Overview in West and North Africa 1 Congo (Brazzaville) Development & Production 2 Cote d Ivoire Exploration, Development & Production 3 Equatorial Guinea Development & Production 4 Gabon Exploration, Development & Production 5 Ghana Exploration, Development & Production. 6 Guinea Exploration 7 Liberia Exploration 8 Mauritania Exploration, Development & Production 9 Senegal Exploration 10 Sierra Leone Exploration Sources: Tullow Fact Book February

9 Strong Exploration Credentials Tullow s success rate on all 2012 exploration and appraisal wells is 34 out of 46, or 74%, according to its February 2013 Fact Book. Tullow has two rigs under long term contract in West & North Africa The West Leo (Seadrill) and the Sedco Energy (Transocean). Country Block/Licence Prospect/Well Interest Spud Date WEST & NORTH AFRICA Côte d'ivoire CI-103 Paon-2A 45% Q Gabon DE-7 M.Oba 28.6% Q Kiarsseny Perroquet 50.1% (op) Q Nziembou Igongo 40% Q Arouwe Sputnik East 29.75% Q Mauritania C-7 Frégate (Scorpion) 36% Aug 2013 C-10 Tapendar 80% (op) Q C-6 Sidewinder 88% (op) Q C-1 Addax-Dromedary 40% Q Guinea Guinea Offshore Eos 40% (op) Q Country Block/Licence Prospect/Well Interest Spud Date Sources: Tullow Operational Update July

10 Current Exploration Timeline 3/31 25% Relinquishment 6/30 9/30 3/31 Pre Stack 2013 Time 2014 Migration Cube Delivered NSAI Updated Report Received Tullow Officially Takes over Operatorship Pre Stack Depth Migration Cube Delivered Drilling Location Selected Spudding of deep-water submarine fan well expected before April 1, 2014 Financial terms of the Tullow farm-in should position Hyperdynamics to carry out the next key phase of exploration offshore Guinea in the highly prospective deep water. West Leo 10

11 Offshore Discoveries Atlantic Reconstruction GUINEA BISSAU Sabu-1 Well Zaedyus Sabu-1 Well Venus Mercury Guinea Sierra Leone & Liberia * Bee-Eater Narina Venus Mercury Tweneboa Bee-Eater Sankofa East Jupiter Narina Paon Jubilee Almond South America French Guiana * Paon Tweneboa Almond Ghana & Cote d Ivoire * Jubilee Sankofa East Pecém Brazil Source: http;//cgxenergy.ca/at-a-glance.aspx Zaedyus This map is a reconstruction for 108 MY ago, prior to deepwater fan formation, with Africa fitted against South America, before the Equatorial Atlantic oceanic crust formed 11

12 MMBO Prospective Oil Resource Inventory 9,000 8,000 7,000 6,000 5,000 4,000 Neocomian Carbonate Leads Deep Water Fans Shallow Water Prospects * Lower cost wells ,000 2,000 1, Nimba Fan Prospect Fatala (EOS) Fan Prospect Sylli Fan Prospect Milo Fan Prospect Eocene Carbonate Prospect Truncation Prospect Baraka Prospect Yiki Carbonate Prospect Neocomian Carbonate Lead 2 Neocomian Carbonate Lead 3 Total Offshore oil seeps, typed to Jurassic or Early Cretaceous carbonate source rock Offshore oil seeps, typed to Late Cretaceous marine source rock Source: Netherland, Sewell & Associates, Inc. 12

13 Prospective Oil Resource Inventory Risk & Size Chance of Success 30% Lower Risk / Lower Resources Lower Risk / Higher Resources 25% Sylli 20% Milo Nimba Fatala (EOS) 15% Baraka Truncation 10% Eocene Carbonate Yiki 5% N.C. Lead 3 N.C. Lead 2 0% Higher Risk / Lower Resources Higher Risk / Higher Resources ,000 1,200 1,400 1,600 1,800 Unrisked Prospective Oil Resources (MMBBL) Neocomian Carbonate Leads Deep Water Fans Source: Netherland, Sewell & Associates, Inc. Shallow Water Prospects * Lower cost wells 13

14 Exploration Target Example Data Improvement from 2D time to 3D time to 3D depth 1. Notice improvement in fault identification (red circles). 2. Notice the correct shape of the fans (less dip) as they approach the last fault (green circles). Defining the up dip limit of the fans is key to defining the extent of the possible charge. Large hydrocarbon charges are possible when the up dip trap has minor dip. 2D Seismic Line Over Sylli Prospect (time) 3D Seismic Line Over Sylli Prospect (time) 3D Seismic Line Over Sylli Prospect (Depth) Steep Dip No Steep Dip Area of Fans Area of Fans Area of Fans These improvements occur because of the defocusing effect of the rugged water bottom and complicated overlying sediments. The section on the right has the benefit of PreStack Depth Migration (PSDM) which attempts to correctly position the data and better focus the image.

15 Leadership Herman J. Cohen Director Fred Zeidman Director Robert Solberg, Chairman Ray Leonard CEO Lord David Owen Director Bill Strange Director Past U.S. Ambassador to Senegal and Gambia, Asst Secretary of State for African Affairs, President of Cohen & Woods International Currently serves as Chairman of Xroads solutions group and has served as CEO and Chairman of a variety of companies Retired President of Worldwide E&P Development for Texaco Division Geologist for West Africa and V.P with Amoco, Executive with YUKOS, MOL, and V.P. of Kuwait Energy Company Past Chairman of YUKOS International UK and Secretary of State for Foreign and Commonwealth Affairs, Retired British MP Retired Partner of Deloitte & Touche. 41 years of public accounting experience in the areas of SEC and the energy industry Ian Norbury New Director Director of Hannon Westwood, a UK consultancy firm. 8 Years with Amerada Hess International Steve Barrett VP of Exploration Exploration VP, Nations Petroleum. VP First International Oil, Exploration Manager Amoco Paul Reinbolt Chief Financial Officer 31 years at Marathon Oil Corporation. 10 years as Marathon s VP Finance & Treasurer 15

16 Why Should You Consider Owning HDY? Low-cost access to one of the most prospective offshore exploration plays in the world today Guinea Basin has been meaningfully de-risked through 3D seismic studies and the Sabu-1 well, which demonstrated the presence of a petroleum system New operator Tullow is a world-class partner with an excellent track record of exploration success offshore West and Northwest Africa HDY has a solid financial position entering the next phase of exploration Substantial upside potential 16

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