Hyperdynamics
| HDY | Profile | Summary
Hyperdynamics'
new management team began accelerating exploration activities on the
Guinea concession in mid-2009, our strategy has been to maximize
shareholder value by retaining as large a working interest ownership
position in the concession as possible, for as long as possible.
To
fund its ongoing exploration activities during this period,
Hyperdynamics successfully raised more than $220 million of equity
from institutional investors, and nearly a quarter of its outstanding
common shares are held by institutions.
In early 2010,
Hyperdynamics sold a 23% stake in the Guinea project to Dana
Petroleum for a total of $19.6 million, which allowed the Company to
retain a 77% working interest in and operatorship of the project as
it spudded the first exploration well in late 2011, the Sabu-1.
The
Sabu-1 exploration well encountered oil shows while drilling the
targeted Upper Cretaceous section, and our well-log interpretations
indicated the presence of residual oil in non-commercial quantities.
Following the drilling of the Sabu-1 well, Hyperdynamics was able to
attract a world class independent explorer, Tullow Oil, to join as
partner and operator of future exploration activities. Following the
sale to Tullow, Hyperdynamics still retains a 37% working interest in
the Guinea concession
Summary
and outlook of future O&G
Deepwater
Production
>>limited
mainly to basins of Atlantic Margin
Common
factors:
•World
class source rocks
•Continuous
subsidence and deposition
Differentiating
factors for mega provinces
•Presence
of massive salt
•Major
river systems for sediment inputCumulative Reserves estimated 160 BB0
of which 115 BBO have been discovered Production peaks at 11-12 MMBOD
in decade of 2020-2030
Heavy
Oil Production
• Production
reaches 7 MMBOD in 2030
>>85%
of resources in two provinces
•High
oil prices needed for profitability
•Heaviest
environmental footprint (surface imprint, CO2 emission, water use) of
unconventional
production
•Better
commercial environment in Canada vs. Venezuela makes Canada leader in
production and technology despite better reservoir and oil quality in
Venezuela
Shale
Oil Production by hydraulic fracturing
Significant
production initiated in 2010 utilizing combination of fracking and
horizontal drillingEconomics dominated by high well decline rates and
need for extensive infrastructure. While potential high potential
formations can be found worldwide, significant production only
started in USA for mainly non-technical reasons
Shale
Oil Production Increase: How much and how fast?
USA
Production: (not including NGL’s)
Major
plays
Bakken
and Eagle Ford should plateau at about 1.0 and 1.2 MMBOD for 5 years
before
declining.
•Permian
a combination of shale and conventional plays
•Other
shale plays an order of magnitude smaller
•NGL’s
major part of play, as they are needed to make most gas shale plays
economic
•Combination
of crude oil and NGL’s will add about 5 MMBOD to US production in
the 2015-2020 period.
New
Oil World
•Non
renewable conventional production peaked in 2005
and
is rapidly being replaced by high cost deep water and unconventional
oil
•Remaining
conventional production focused in the Arabian Basin and FSU, while
new
production mostly in Western Hemisphere and Sub Saharan Africa
•World
production growth slows in 2020’s when deep water production peaks,
and next
price
spike a possibility
Sub
Saharan Africa
•Production
doubles in the 2000-2020 time period
•Low
cost conventional oil largely replaced by high cost deep water oil
•Despite
increased production, revenue per barrel is approximately half;
without recognizing fiscal reality, necessary investment will not be
attracted
•After
2020, production will gradually shift from current SW Africa hub to
new
provinces
in NW Africa and East Africa
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