OCT-29-2012: TULLOW GUINEA-BASSU FARM IN Pretty interesting development happening along the West African margin. Would believe this is of particular relevance becuase Guinea-Bassu appears to be the West African conjugate of Guyana in South America.
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Oct-29-2012
Tullow in Talks Guinea-Bassu Farm In with Hyperdynamics
Tullow Oil is engaged in exclusive talks for the possible acquisition of a major stake in Hyperdynamics’ contract area off Guinea that could see the UK independent take over operatorship. Cash-strapped Hyperdynamics, which has been seeking to offload part of its operated 77% stake in the concession amid drilling difficulties, said in a statement on Monday that Tullow was in talks to acquire a 40% interest under an exclusivity agreement with subsidiary SCS that expires on 19 November.
A transaction for transfer of the stake would be completed by year-end in the event that the parties agree on an acquisition deal. Aberdeen-based Dana Petroleum holds the remaining 23% stake in the licence.
Hyperdynamics has been facing liquidity challenges due to high drilling costs on the initial abortive Sabu-1 wildcat sunk on the 25,000 square-kilometre licence and it was forced to ditch a planned second well due to lack of cash. The Houston-based company’s chief executive Ray Leonard said earlier this year it was seeking an “experienced deep-water operator” with sufficiently deep pockets to move the troubled project forward. Hyperdynamics may be under time pressure after being warned in May that it could face expulsion from the New York stock exchange due to its weak share price unless its performance improved within six months.
Tullow, for its part, is keen to expand its acreage position off West Africa where it is operator of the Jubilee oilfield off Ghana and is also looking to bring into production the Tweneboa-Enyenra-Ntomme field cluster project that it hopes will be sanctioned by year-end.