Hyperdynamics Corporation is pleased to announce that it has entered into a $30 million definitive private placement agreement to sell 15 million common shares at a price of $2.00 per share to funds managed by affiliates of BlackRock, one of the world's preeminent investment management firms. The closing of the private placement is subject to the satisfaction of customary closing conditions.
The net proceeds from the sale will facilitate the drilling of Hyperdynamics' exploration program that is scheduled to start in late 2011 offshore Republic of Guinea, as well as for working capital and general corporate purposes. Hyperdynamics is the operator and 77% owner in a 9,650-square-mile oil and gas concession in offshore Guinea. U.K.-based Dana Petroleum owns 23% of the license.
With this purchase, the BlackRock managed funds will own approximately 12% of Hyperdynamics common shares. Hyperdynamics will be required to file a resale registration statement within 30 days that covers the resale by the purchasers of the shares.
"We are very pleased that a company with the stature of BlackRock, which is one of the world's largest asset managers and a major investor in the energy industry, sees strong value in Hyperdynamics," said Ray Leonard, Hyperdynamics President and Chief Executive Officer. "The financial backing from BlackRock provides us with additional flexibility in determining our plans regarding sales of additional participation interests in the oil and gas concession in offshore Guinea while continuing to serve as operator."
Additional information about the transaction is available in a Current Report on Form 8-K filed with the SEC by Hyperdynamics today. This press release shall not constitute an offer to sell or the solicitation of an offer to buy such common stock.
