UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 


 

Date of Report (date of earliest event reported): April 27, 2017 (April 21,2017)

 


 

Hyperdynamics Corporation

(Exact name of registrant as specified in its charter)

 


 

 

(Address of principal executive offices,
including zip code)

 

 

(Registrant’s telephone number,
including area code)

 

Delaware

 

001-32490

 

87-0400335

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

12012 Wickchester Lane, Suite 475

Houston, Texas 77079

(Address of principal executive offices, including zip code)

 

voice:  (713) 353-9400

fax:  (713) 353-9421

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 



 

Item 1.01               Entry into a Material Definitive Agreement

 

On April 21, 2017, Hyperdynamics Corporation (“Hyperdynamics,” the “Company,” “we” or “us”), through its wholly-owned subsidiary, SCS Corporation Ltd. (“SCS”), received an implementing Presidential Decree from the Republic of Guinea authorizing a Third Amendment (the “Third Amendment”) to the Hydrocarbon Production Sharing Contract, dated September 22, 2006, between SCS and the Republic of Guinea, as amended on March 25, 2010, and on September 21, 2016 (the “Production Sharing Contract”).  The Third Amendment was signed by Mr. Diakaria Koulibaly, General Director of the National Petroleum Office of the Republic of Guinea; Ms. Malado Kaba, the Minister of Economy and Finance of the Republic of Guinea; Ray Leonard, President and Chief Executive Officer of Hyperdynamics and Director of SCS, and Dale Rollins, Managing Director of South Atlantic Petroleum Limited (“SAPETRO”) on April 12, 2017.  The Third Amendment was subject to the authorizing Presidential Decree and the Closing of the farmout agreement between SCS and SAPETRO for the acquisition by SAPETRO of a 50% interest in the Contract from SCS (“Farmout Agreement”).  The Third Amendment was entered into in accordance with the Tri Party Protocol between SCS Corporation Ltd. SAPETRO and the Government of Guinea dated March 10, 2017 (“Protocol”).

 

A copy of the Production Sharing Contract was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K that was filed with the Securities and Exchange Commission (the “SEC”) on September 28, 2006. A copy of the First Amendment to the Production Sharing Contract was filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K that was filed with the SEC on May 14, 2010.   A copy of the Second Amendment to the Production Sharing Contract was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K that was filed with the SEC on September 22, 2016.   A copy of the Protocol was filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K that was filed with the SEC on March 13, 2017. A copy of the Farmout Agreement was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K that was filed with the SEC on April 6, 2017.

 

The Third Amendment records and confirms the approval of the assignment of a 50% interest in the Production Sharing Contract and the validity of the rights under the Production Sharing Agreement to SCS to SAPETRO (the “Contractors”).  The Government of Guinea also undertakes that it shall not terminate, revoke or restrict the Contract or the rights of the Contractors to conduct Petroleum Operations based on the failure of SCS to have provided the Security Instrument as required under the Second Amendment.  The Contractors further agree that within 30 days following the date of execution of a Presidential Decree approving the Third Amendment, the Contractors will provide a security instrument in the amount of $5 million, issued by a bank acceptable to the Government, whose approval shall not be unreasonably withheld, provided however such performance guarantee shall be released and cancelled at the time the drilling rig to be used in the drilling of the extension well is located in the shelf waters of the Republic of Guinea, including its territorial waters. The Protocol states that SAPETRO will provide the $5 million security interest upon Government of Guinea approval to enter the Concession and completion of the Farmout Agreement.

 

The Third Amendment appoints SCS as the Operator of the Concession and requires that the project commencement date of drilling operations on an initial exploratory well to be drilled to a minimum depth of 2,500 meters below the seabed for an estimated amount of $46,000,000 be no later than May 30, 2017. Additional exploration wells may be drilled within the exploration period at the Contractors’ option.

 

The foregoing disclosure concerning the Third Amendment is qualified in its entirety by reference to the Third Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K.

 

2



 

Item 7.01               Regulation FD Disclosure.

 

On April 25,2017, Hyperdynamics Corporation issued a press release titled, “Hyperdynamics Receives Presidential Decree Implementing the Third Amendment to the Production Sharing Contract”  The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

In accordance with General Instruction B.2 of Form 8-K, the information disclosed in Item 7.01, and Exhibit 99.1 attached hereto, this Current Report on Form 8-K shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing.

 

Item 9.01               Financial Statements and Exhibits.

 

Exhibit Number

 

Description

 

 

 

Exhibit 10.1

 

Amendment No. 3 to the Hydrocarbon Production Sharing Contract (English translation)

 

 

 

Exhibit 10.2

 

Amendment No. 3 to the Hydrocarbon Production Sharing Contract (Original French version)

 

 

 

Exhibit 10.3

 

Presidential Decree (English Translation)

 

 

 

Exhibit 10.4

 

Presidential Decree (Original French version)

 

 

 

Exhibit 99.1

 

Press release dated April 25, 2017 titled , “Hyperdynamics Receives Presidential Decree Implementing the Third Amendment to the Production Sharing Contract”  The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K”

 

3



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

HYPERDYNAMICS CORPORATION

 

 

Date:

April 27, 2017

 

By:

/s/ RAY LEONARD

 

 

Name:

Ray Leonard

 

Title:

Chief Executive Officer

 

4



 

EXHIBIT INDEX

 

Exhibit Number

 

Description

 

 

 

Exhibit 10.1

 

Amendment No. 3 to the Hydrocarbon Production Sharing Contract (English translation)

 

 

 

Exhibit 10.2

 

Amendment No. 3 to the Hydrocarbon Production Sharing Contract (Original French version)

 

 

 

Exhibit 10.3

 

Presidential Decree (English Translation)

 

 

 

Exhibit 10.4

 

Presidential Decree (Original French version)

 

 

 

Exhibit 99.1

 

Press release dated April 25, 2017 titled , “Hyperdynamics Receives Presidential Decree Implementing the Third Amendment to the Production Sharing Contract”

 

5


Exhibit 10.1

 

SA PKTR<."> HYPERDYNAMICS OTCQX:HD\"H THIRD AMENDMENT TO THE HYDROCARBONS PRODUCTION SHARING CONTRACT Between the Republic of Guinea, represented by Mr. Diakaria Koulibaly, General Director of the Office National des Petroles ("ONAP"), situated in Commandayah-Miniere, Dixinn, Conakry, Republic of Guinea, hereinafter referred to as the "Government" (provided however that where applicable law grants the National Petroleum Office the necessary authority, the term Government as used in the present Contract shall mean and include the National Petroleum Office), of the one part, And SCS Corporation Ltd., ("SCS") a company registered and incorporated in the Cayman Island and a wholly owned subsidiary of Hyperdynamics Corporation, a company incorporated in Delaware, United States of America with its registered offices at 12012 Wickchester Lane, Suite 475, Houston Texas, 77079, United States of America, represented by Mr. Ray Leonard, president and chief executive officer; And South Atlantic Petroleum Limited, ("SAPETRO") a company registered and incorporated in the Federal Republic of Nigeria, with its registered address at 11th and 12th Floors, South Atlantic Petroleum Towers, 1 Adeola Odeku Street, Victoria Island, Lagos, Federal Republic of Nigeria, and represented by Dale Rollins, managing director; (SCS and SAPETRO being hereinafter referred to as the "Contractors") of the other part. (The Government and the Contractors being hereinafter referred to as the "Parties"). Capitalized terms used in this Third Amendment shall have the meaning ascribed to them in this Third Amendment and capitalized terms used in this Third Amendment not defined in this Third Amendment shall have the meaning ascribed to them in the Original PSC and the amendments thereto. WITNESSETH Whereas on 22 September 2006, a hydrocarbons production sharing contract (the "Original PSC'') was signed between the Government and SCS; Whereas, pursuant to Arrete No. 0925 dated 21 April 2010, the Government approved the assignment of a 23% participating interest in the Original PSC by SCS to Dana Petroleum (E&P) Limited ("Dana"); Whereas, pursuant to Decree No. 71 dated 10 May 2010, the Government approved the Original PSC, the pt Amendment to the Original PSC dated 25 March 2010 (the "Amendment No.1 to the Original PSC") and the assignment of a 23% participating interest in the Contract by SCS to Dana; ·. 1 /

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HYPERDYNAMICS Whereas, pursuant to Arrete No. 10629 dated 27 December 2012, the Government approved the assignment of a 40% participating interest in the Contract by SCS to Tullow Guinea Ltd. ("Tullow"); Whereas, on 16 July 2016, SCS formally requested to the Government a one-year extension to the Second Exploration Period until21 September 2017; Whereas, pursuant to a Settlement and Release Agreement dated 15 August 2016, SCS assumed all of the rights and obligations under the Contract, and Tullow and Dana officially withdrew from the Contract; Whereas the Government and SCS agreed to a non-binding Memorandum of Understanding on 19 August 2016, outlining the key terms of the one-year Extension Period until 21 September 2017; Whereas on 14 September 2016, the Government and SCS executed the Second Amendment to the Hydrocarbons Production Sharing Contract (the "Second Amendment"); Whereas, pursuant to Decree No. 275 dated 21 September 2016, the Second Amendment was approved; Whereas SCS did not provide a Security Instrument in the amount of US$ 5 million by January 21, 2017 as required under Section 4.7(c) of the Contract; Whereas, by Letter dated 23 January 2017, SCS requested an extension of the time limit for providing a Security Instrument in the amount of US$ 5 million in accordance with Section 4.7(c) of the Contract; Whereas, by Letter dated 24 January 2017, from the General Director of the ONAP, the Government granted said extension until20 February 2017; Whereas, by Letter dated 1 March 2017, from the General Director of the ONAP addressed to SCS, the Government put SCS on notice that it was in default of its obligation to provide a Security Instrument in the amount of US$ 5 million in accordance with Section 4.7(c) of the Contract, and reserving the Government's rights under the Contract; Whereas, on 10 March 2017, the Government, represented by ONAP, SCS and SAPETRO executed a Tri-party memorandum setting forth certain objectives relating to execution of agreements between SCS and SAPETRO for the acquisition of a portion of SCS's interest in the Contract by SAPETRO (the "SAPETRO Transaction Agreements"), the drilling of the Extension Well, with an effective start date no later than 30 May 2017, the provision of the Security Instrument by SAPETRO, and the amendment of the Contract to provide certain assurances to SCS and SAPETRO; Whereas, on 30 March 2017, SCS and SAPETRO executed the SAPETRO Transaction Agreements listed in Appendix A to this Third Amendment, which provide for the acquisition by SAPETRO of a 50% of the Contractor's interest in the Contract; Whereas the Parties now hereby agree to further amend the Contract in order to: 1. Record and confirm the approval by the Government, of the assignment by SCS to SAPETRO of a 50% ofSCS's interest in the Contract; 2. Confirm the validity of the rights and participating interest of the Contractors to and under the Contract; /b \0 .. .

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- ---- SAJ>:ETR<> HYPERDYNAMICS OTCOJC:HOVH Confirm that drilling operations in relation to the Extension Well shall start no later than 30 May 2017; and 3. 4. Clarify the provisions relating to the provision of the Security Instrument by SCS and SAPETRO; Whereas, subject to the provisions set out hereinafter, all the conditions and provisions of the Contract (as amended, replaced by novation or subsequently added to) shall remain unchanged and in force; The Parties have negotiated and entered into this Third Amendment to the Contract (the "Third Amendment"). Ratification: 1. The Government hereby ratifies and confirms by the present Third Amendment clear and unequivocal title to the Contractors to the Contract. The Government undertakes that it shall not terminate, revoke, restrict, rescind or limit the Contract, or the rights of the Contractors to conduct Petroleum Operations pursuant to the Contract, based on the failure of SCS to have provided the Security Instruments as required by Sections 4.7(b) and (c) of the Contract, as added per the Second Amendment and as extended by Letter dated 24 January 2017, subject to performance by SCS and SAPETRO of their obligations under this Third Amendment. The Government further undertakes that it shall not terminate, revoke, restrict, rescind or limit the Contract, or the rights of the Contractors to conduct Petroleum Operations pursuant to the Contract, based on non-compliance by SCS with the provisions of Section 4.7(a) of the Contract, as added per the Second Amendment. 2. As of the date hereof, Contractors confirm (i) the accuracy of the representations, and (ii) compliance with the covenants set forth in Section 3 of the Second Amendment. 3. The Parties hereby confirm and consent by the present Third Amendment to the assignment by SCS to SAPETRO of an undivided 50% of the SCS's interest in the Contract. As a result of such assignment, the rights and obligations of the Contractors, to the Contract and the interest of the Contractors on the date of this Third Amendment hereof is, subject to the provisions of Section 23.3 of the Contract, the following: SCS Corporation Ltd.: SAPETRO 50% 50% The Parties confirm that SCS is designated as Operator. 4. "Article 1: Definition" is amended as follows: Delete and Replace Section 1.6 -Contract. with the following: "1.6 "Contract" means the Original PSC and its appendices, as amended by the Amendment No. 1 to the Original PSC, the Second Amendment to the Original PSC and by the Third Amendment, as well as any extensions or modifications, or further amendments thereto which may be mutually agreed by the Parties in accordance with the provisions of Article 29.3 thereof." 5. "Article 4: Exploration Work and Expenditure Obligations" is amended as follows: Delete and Replace Section 4.l(c) with the following: -.1.

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SAPICTRO HYPERDYNAMIC§ OTCQK:HOYH "(c) During the Extension Period, the Contractors shall drill a minimum of one (1) exploration well in the Contract Area to a minimum depth (subject to Article 4.3 of the Contract) to two thousand five hundred (2,500) meters below the seabed for an amount estimated at forty six million US Dollars (46,000,000 USD) (the "Extension Well"). The projected commencement date of drilling operations of said Extension Well is no later than 30 May 2017, with a currently estimated time to completion of 42 days. During the Extension Period, the Contractor may, at its option, drill additional exploration wells in the Contract Area." Add to Section 4.2 the following: "SCS and SAPETRO recognize they are jointly and severally liable to the Government under the Contract, including under the provisions of this Section 4.2. The Government shall have the right to request the entire sum due from SCS and/or SAPETRO." Delete and Replace Section 4.6(e) with the following: "(e) The Contractors agree that the Government may terminate the Contract, immediately and without prior notice for failure to comply with Section 4.7(c)." Delete Section 4.7(b) in its entirety. Delete and Replace Section 4.7(c) with the following: "(c) Within thirty (30) days following the date of signature of the presidential decree approving the Third Amendment, the Contractors shall provide a security instrument in the amount of US$ 5 million, issued by a bank acceptable to the Government, whose approval shall not be unreasonably withheld, provided however such performance guarantee shall be released and cancelled at the time the drilling rig to be used in the drilling of the Extension Well is located in the shelf waters ofthe Republic of Guinea, including its territorial waters." 6. "Article 28.1: Notices" is amended as follows: Add to end of Section 28.1: "To SAPETRO : South Atlantic Petroleum Limited 11th and 12th Floors South Atlantic Petroleum Towers 1 Adeola Odeku Street Victoria Island Lagos Nigeria Attention: Mr. Dale Rollins Mobile telephone: + 234 810 483 4380" 7. Miscellaneous provisions This Third Amendment shall be effective on the date it is approved by decree of the President of the Republic, and subject to the Closing of the transaction between SCS and SAPETRO, as defmed in the SAPETRO Transaction Agreements. .1.

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HYPERDYNAMICS SA Pt•.:TR< OTCQK: HO'I'H This Third Amendment may be executed in three or more counterparts, which together shall be deemed to be a single Rider, and the signature shall be deemed to be effective when the aforementioned counterparts are signed and sent to the other parties.

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SAPETROHYPERDYNAMICS OTCQJC: HDYH IN WITNESS WHEREOF, the Parties signed this Third Amendment on the date hereinafter For the Republic of Guinea: For the Contractors: Diakara Koulibaly Director General, Office National des Petroles ay Leonard, 1 ector, SCS Corporation Ltd. Date: Date Title: Managing Director, SAPETRO Reviewed and approved by Ms. Malado Kaba Minister of Economy and Finance 2-( . J., . 2&> I !:)-· Date: 6

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Exhibit 10.2

 

I a SA PETRO HYPERDYNAMICS OTCQX:HOYH TROISIEME AVENANT AU CONTRAT DE PARTAGE DE PRODUCTION D'HYDROCARBURES Entre la Republique de Guinee, representee par M. Diakaria Koulibaly, Directeur General de !'Office National des Petroles (« ONAP »), sis a Commandayah-Miniere, commune de Dixinn, Conakry, Republique de Guinee, ci-apres designee le « Gouvemement » (etant precise que, dans la mesure oil le droit applicable accorde a l 'Office National des Petroles l'autorite necessaire, le terme Gouvemement utilise dans le present Contrat signifie et inclut l'Office National des Petroles), d'une part, et SCS Corporation Ltd., (« SCS »),societe constituee et immatriculee aux iles CaYmans, filiale a cent pour cent d'Hyperdynamics Corporation, societe constituee au Delaware, Etats-Unis d'Amerique, dont le siege social est sis a 12012 Wickchester Lane, Suite 475, Houston, Texas 77079, Etats-Unis d'Amerique, representee par Monsieur Ray Leonard, President et Directeur General; et South Atlantic Petroleum Limited], (« SAPETRO »), societe constituee et immatriculee dans la Republique federale du Nigeria, dont le siege social est sis a 11th and 12th Floors, South Atlantic Petroleum Towers, 1 Adeola Odeku Street, Victoria Island, Lagos, Republique federale du Nigeria, et representee par Dale Rollins, Directeur General ; (SCS et SAPETRO etant designees ci-apres les «Entrepreneurs _»), d 'autre part. (Le Gouvemement et les Entrepreneurs etant designes ci-apres les «Parties»). Les termes commenyant par une majuscule utilises dans le present Troisierne Avenant ont le sens qui leur est donne dans le present Troisieme Avenant et les termes commenyant par une majuscule utilises dans le present Troisieme Avenant qui ne sont pas definis dans le present Troisieme Avenant ont le sens qui leur est donne dans le CPP Initial et ses avenants. PREAMBULE Attendu que, le 22 septembre 2006, un contrat de partage de production d'hydrocarbures (le « CPP Initial») a ete signe entre le Gouvemement et SCS ; Attendu que, conformement a l'arrete no 0925 du 21 avril 2010, le Gouvemement a approuve la cession par SCS a _ D etroleum (E&P) Limited(« Dana») d'une participation de 23 % dans le CPP Initial ; \ '--"" -

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Attendu que, conformement au decret n° 71 du 10 mai 2010, le Gouvernement a approuve le CPP Initial, le 1er Avenant au CPP Initial en date du 25 mars 2010 (1'« Avenant n° 1 au CPP Initial ») et la cession par SCS a Dana d 'une participation de 23 % dans 1e Contrat ; Attendu que, conformement a !'arrete no 10629 du 27 decembre 2012, le Gouvernement a approuve la cession par SCS a Tullow Guinea Ltd.(« Tullow ») d'une participation de 40% dans le Contrat; Attendu que le 16 juillet 2016, SCS a soumis au Gouvernement une demande officielle extension de la Seconde Periode d'Exploration pour une duree d'un anjusqu'au 21 septembre 2017; Attendu que, conformement a un Accord de Transaction et de Renonciation conclu 1e 15 aout 2016, SCS assume tous les droits et obligations en vertu du Contrat, et Tullow et Dana se sont officiellement retirees du Contrat ; Attendu que 1e Gouvernement et SCS ont conclu, le 19 aout 2016, un Protocole d'Entente non contraignant dessinant les conditions essentielles de la Periode d'Extension d'un an jusqu'au 21 septernbre 2017 ; Attendu que 1e 14 septembre 2016, 1e Gouvernernent et SCS ont signe 1e Second Avenant au Contrat de Partage de Production d'Hydrocarbures (le «Second Avenant »); Attendu que, conformernent au decret n° 275 du 21 septernbre 2016, le Second Avenant a ete approuve; Attendu que SCS n'a pas fait emettre de Garantie d'un montant de 5 millions USD au 21 janvier 2017 tel qu'exige a !'article 4.7(c) du Contrat; Attendu que, par lettre du 23 janvier 2017, SCS a sollicite une extension du delai pour faire emettre une Garantie d'un montant de 5 millions USD conformement a !'article 4.7(c) du Contrat; Attendu que, par lettre du 24 janvier 2017 du Directeur General de 1'ONAP, le Gouvernement a accorde ladite extensionjusqu'au 20 fevrier 2017; Attendu que par lettre du 1 er mars 2017 du Directeur General de l'ONAP adressee a SCS, le Gouvernement a mis en demeure SCS de rernectier au non-respect de son obligation de faire emettre une Garantie d'un montant de 5 millions USD conformement a !'article 4.7(c) du Contrat, eta reserve ses droits au titre du Contrat; Attendu que, le 10 ars 2017, le Gouvernement, represente par l'ONAP, SCS et SAPETRO ont signe un Protocole Tripartite enon9ant un certain nornbre d'objectifs relatifs a la signature d'accords entre SCS et SAPETRO pour !'acquisition par SAPETRO d'une partie de la participation de SCS dans 1e Contrat (les «Accords de Transaction SAPETRO »), le forage du Puits d'Extension avec un demarrage effectif au plus tard le 30 mai 2017, la fourniture d'une Garantie par SAPETRO et 1'amendement du Contrat pour fournir certaines garanties a SCS et SAPETRO ; Attendu que le 30 mars 2017, SCS et SAPETRO ont signe les Accords de Transaction SAPETRO listes en Annexe A du present Troisierne Avenant, qui prevoient !'acquisition par SAPETRO d'une participation de 50% de la participation de !'Entrepreneur dans le Contrat; Attendu que les Parties conviennent par les presentes de nouveaux arnendernents au Contrat afin de : SCS a SAPETRO de 50 % de la participation de SCS dans le Contrat ; l 7-Prendre acte officiellement et confirmer !'approbation du Gouvemement de la cession par 1. 0U: 2

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2. Confirmer la validite des droits et la participation des Entrepreneurs au Contrat et en vertu de celui-ci ; 3. Confirmer que les operations de forage du Puits d'Extension debutera au plus tard le 30 mai 2017 ; 4. Preciser les dispositions relatives a la fourniture de la Garantie par SCS et SAPETRO ; Attendu que, sous reserve des stipulations enoncees ci-apn s, toutes les conditions et stipulations du Contrat (telles que modifiees, remplacees par novation ou completees ulterieurement) demeurent inchangees et restent en vigueur ; Les Parties out negocie et conclu le present Troisieme Avenant au Contrat (le « Troisieme Avenant »). II est convenu de ce qui suit : 1. · Le Gouvemement approuve et confirme par le present Troisieme Avenant que les Entrepreneurs sont les titulaires manifestes et sans equivoque du Contrat. Le Gouvemement s'engage a ne pas resilier, n!voquer, restreindre, annuler ou limiter le Contrat, ou les droits des Entrepreneurs de mener les Operations Petrolieres conformement au Contrat, sur le fondement du defaut d'ernission par SCS des Garanties requises aux articles 4.7(b) et (c) du Contrat, tels qu'ajoutes par le Second Avenant, et tel que modifie par la lettre du 24 janvier 2017, sous reserve de !'execution par SCS et SAPETRO de leurs obligations en vertu du present Troisieme Avenant. Le Gouvernement s'engage egalement a ne pas resilier, revoquer, restreindre, annuler ou limiter le Contrat, ou les droits des Entrepreneurs de mener les Operations Petrolieres conformement au Contrat, sur le fondement du manquement de SCS aux stipulations de !'article 4.7(a) du Contrat, tel qu'ajoute par le Second Avenant. 2. A la date des presentes, les Entrepreneurs confrrment (i) !'exactitude des declarations, et (ii) le respect des engagements enonces a !'article 3 du Second Avenant. Les Parties confrrment et consentent par le present Troisieme Avenant ala cession par SCS a SAPETRO de 50 % indivisible de la participation de SCS dans le Contrat. En consequence d 'une telle cession, les droits et obligations des Entrepreneurs au Contrat et la participation des Entrepreneurs ala date du present Troisieme Avenant soot, sous reserve des dispositions de !'article 23.3 du Contrat, repartis comme suit: 3. 50% 50% SCS Corporation Ltd. : SAPETRO Les Parties confirment que SCS est designe comme l'Operateur. 4. L'« Article 1 : Definitions» est modifie comme suit: L'Article 1.6-Contrat est supprime dans son integralite et remplace par ce qui suit: « 1.6 « Contrat )) signifie le CPP Initial et ses annexes, tels que modifies par 1'Avenant no 1 au CPP initial, par le Second Avenant au CPP initial et le Troisierne Avenant, ainsi que tout ajout, modification ou modifications ulterieures convenues d'un commun accord entre les Parties conformement a l'article 29.3 du Contrat )). obligations concernant .les depenses » est L' « Article 4 : Travaux d'exploration et 5. modifie comme suit : -8

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L'Article 4.l(c) est supprime dans son integralite et remplace par ce qui suit: «(c) Pendant la Periode d'Extension, les Entrepreneurs devront forer au minimum, dans la Zone Contractuelle, un (1) puits d'exploration d'une profondeur minimum (sous reserve de !'article 4.3 du Contrat) de deux mille cinq cents (2.500) metres en dessous du fond de lamer, pour un montant estime a quarante-six millions de dollars americains (46.000.000 USD) (le « Puits d'Extension »). 11 est prevu que les operations de forage dudit Puis d'Extension debute au plus tard Ie 30 mai 2017, pour une duree d'execution estimee actuellement a 42 jours. Pendant la Periode d'Extension, !'Entrepreneur pourra, a sa discretion, forer des puits d'exploration supplementaires dans la Zone Contractuelle. » L 'Article 4.2 est complete cornrne suit : « SCS et SAPETRO reconnaissent qu'elles sont solidairement responsables vis-a-vis du Gouvemement en vertu du Contrat, y compris au titre des stipulations du present Article 4.2. Le Gouvemement aura le droit de demander le paiement de l'integralite de la sornrne due a SCS et/ou SAPETRO. » L'Article 4.6(e) est supprime dans son integralite et remplace par ce qui suit: « (e) Les Entrepreneurs conviennent que le Gouvemement peut resilier le Contrat irnrnediatement et sans mise en demeure prealable en cas de manquement a !'article 4.7(c) ». L 'Article 4.7(b) est supprime dans son integralite. L'Article 4.7(c) est supprime dans son integralite et remplace par ce qui suit: « (c) Dans un delai de trente (30) jours suivant la date de signature du decret presidentiel d'approbation du Troisieme Avenant, les Entrepreneurs feront emettre une garantie securitaire d'un montant de 5 millions USD, par une banque acceptable pour le Gouvemement, dont !'accord ne saura etre refuse sans motif raisonnable, etant precise qu'il sera ordonne mainlevee de cette caution de bonne execution une fois que la plate-forme de forage servant au forage du Puits d'Extension sera localisee dans le plateau continental de la Republique de Guinee, y compris ces eaux territoriales. » L' « Article 28.1 : notifications » est modifie comme suit : 6. Ajouter ala fm de !'article 28.1 : « A SAPETRO : South Atlantic Petroleum Limited 11th and 12th Floors South Atlantic Petroleum Towers 1 Adeola Odeku Street Victoria Island Lagos Nigeria Attention: Mr. Dale Rollins Telephone:+ 234 810 483 4380 » 7. Dispositions diverses Le present Troisieme Avenant entrera en vigueur a compter de la date a laquelle il sera

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approuve par decret du President de la Republique, sous reserve du Closing de la transaction entre SCS et SAPETRO, tel que detini dans les Accords de Transaction SAPETRO. Le present Troisierne Avenant peut etre signe en trois exemplaires identiques ou plus, consideres ensemble comme un seul Avenant, et la signature sera reputee effective quand lesdites copies seront signOes et adressOes aux autres parties. _.{ £2: 5

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EN FOI DE QUOI, les Parties ont signe le present Troisierne Avenant a la date indiquee ci-dessous Pour la Republique de Guinee : Pour les Entrepreneurs : .,.......,ard, 1 cteur, SCS Corporation Ltd. Diakara Koulibaly Directeur General, Office National des Petroles ... Date :-" "-+--\ _ l '"2-l-.,._2_-ID J -=f-l1-[ l_ -= 0 '<-:{ _ 7.JJ Date: Nom Titre : Directeur General, SAPETRO Af:?e/1-12 , 2...t:> 17 Date : I Madame Malado Kaba Ministre de l'Economie et des Finances Date :21 . J... , 2.0 J 7 · 6

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Exhibit 10.3

 

PRESIDENCY OF THE REPUBLIC

REPUBLIC OF GUINEA

 

 

GENERAL SECRETARIAT

Work — Justice - Solidarity

OF GOVERNMENT

 

 

DECREE D/2017/ 087 /PRG/SGG

 

CONCERNING APPROVAL OF THE THIRD AMENDMENT TO THE HYDROCARBONS PRODUCTION SHARING CONTRACT BETWEEN THE REPUBLIC OF GUINEA, THE SCS CORPORATION LTD (A SUBSIDIARY OF HYPERDYNAMICS CORPORATION) AND THE SOUTH ATLANTIC PETROLEUM LIMITED COMPANY (SAPETRO)

 

THE PRESIDENT OF THE REPUBLIC

 

In view of

 

The Constitution;

 

 

 

In view of

 

Law L/2016/075/AN of December 30, 2016, concerning the financial governance of Public Enterprises and Facilities in the Republic of Guinea;

 

 

 

In view of

 

Ordinance N°119/PRG(1) of September 23, 1986, concerning the Petroleum Code of the Republic of Guinea (Code of reference for the Hydrocarbons Production Sharing Contract between the Republic of Guinea and SCS Corporation Ltd.);

 

 

 

In view of

 

Decree D/2015/226/PRG/SGG of December 26, 2015, concerning the nomination of the Prime Minister, Head of Government;

 

 

 

In view of

 

Decree D/2015/227/PRG/SGG of December 30, 2015, concerning the structure of the Government;

 

 

 

In view of

 

Decree D/2016/003/PRG of January 04, 2016, concerning the nomination of members of the Government;

 

 

 

In view of

 

Decree D/2015/165/PRG/SGG of August 29, 2015, concerning the Creation, Bylaws, Mission, Powers and Organization of the Office National des Pétroles (ONAP - National Petroleum Office);

 

 

 

In view of

 

Decree D/2016/007/PRG/SGG of January 9, 2016, concerning the nomination of the General Manager of the Office National des Pétroles (ONAP);

 

 

 

In view of

 

The Hydrocarbons Production Sharing Contract signed on September 22, 2006, between the Republic of Guinea and the SCS Corporation Ltd, as amended by the First Amendment dated March 25, 2010, and the Second Amendment dated September 14, 2016;

 

 

 

In view of

 

The Tripartite Protocol signed on March 10, 2017, between the Republic of Guinea, the SCS Corporation Ltd Firm and the South Atlantic Petroleum Limited Company;

 

 

 

In view of

 

The Third Amendment to the Hydrocarbons Production Sharing Contract between the Republic of Guinea, the SCS Corporation Ltd Company and the South Atlantic Petroleum Limited Company, dated April 12, 2017;

 

 

 

In view of

 

The Hydrocarbons Production Sharing Contract signed on September 22, 2006, between the Republic of Guinea and the SCS Corporation Ltd Company, as amended by the First Amendment dated March 25, 2010 and the Second Amendment dated September 14, 2017;

 

 

 

In view of

 

The Tripartite Protocol signed on March 10, 2017, between the Republic of Guinea, the SCS Corporation Ltd Firm and the South Atlantic Petroleum Limited Company;

 

 

 

 



 

In view of

 

The Third Amendment to the Hydrocarbons Production Sharing Contract between the Republic of Guinea, the SCS Corporation Ltd Company and the South Atlantic Petroleum Limited Company, dated April 12, 2017;

 

 

 

 

 

On the proposition of the General Manager of ONAP ;

 

DECREES

 

Article 1:

 

The Third Amendment to the Hydrocarbons Production Sharing Contract between the Republic of Guinea, the SCS Corporation Ltd Company and the South Atlantic Petroleum Limited Company, dated April 12, 2017, is approved;

 

 

 

Article 2:

 

This Decree, which takes effect as of the date it is signed, shall be recorded and published in the Journal Officiel de la Republique (“Official Journal of the Republic”)

 

Conakry, dated 21 APRIL 2017

 

 

Professor Alpha CONDE

 

PRG(1) = President de la République de Guinée (“President of the Republic of Guinea”)

 

SGG = General Secretariat of Government

 


Exhibit 10.4

 

REPUBLIQUE DE GUINEE PRESIDENCE DE LA REPUBLIQUE Travail -Justice-Solidarite SECRETARIAT GENERAL DU GOUVERNEMENT 8 DECRET D/2017/................./PRG/SGG PORTANT APPROBATION DU TROISIEME AVENANT AU CONTRAT DE PARTAGE DE PRODUCTION D'HYDROCARBURES ENTRE LA REPUBLIQUE DE GUINEE, LA SOCIETE SCS CORPORATION LTO (FILIALE DE HYPERDYNAMICS CORPORATION) ET LA SOCIETE SOUTH ATLANTIC PETROLEUM LIMITED (SAPETRO) LE PRESIDENT DE LA REPUBLIQUE Vu La Constitution ; Vu La Loi L/2016/075/AN du 30 Oecembre 2016, portant gouvernance financiere des Societes et Etablissements Publics en Republique de Guinee ; Vu L'Ordonnance N°119/PRG du 23 septembre 1986 portant Code Petrolier de Ia Republique de Guinee (Code de reference du Contrat de Partage de Production d'Hydrocarbures entre Ia Republique de Guinee et SCS Corporation Ltd) ; Vu Le Oecret 0/2015/226/PRG/SGG du 26 decembre 2015, portant nomination du Premier Ministre, Chef du Gouvernement ; Vu Le Oecret D/2015/227/PRG/SGG du 30 decembre 2015, portant structure du Gouvernement ; Vu Le Oecret 0/2016/003/PRG du 04 janvier 2016, portant nomination des membres du Gouvernement Vu Le Oecret 0/2015/165/PRG/SGG du 29 aout 2015 portant Creation, Statuts, Mission, Attribution et Organisation de I'Office National des Petroles (ONAP) ; Vu Le Decret 0/2016/007/PRG/SGG du 9 janvier 2016 portant nomination du Directeur General de I'Office National des Petroles (ONAP) ; Vu Le Contrat de Partage de Production d'Hydrocarbures signe le 22 septembre 2006 entre Ia Republique de Guinee et Ia Societe SCS Corporation Ltd tel qu'amende par le Premier Avenant en date du 25 mars 2010 et le Second Avenant en date du 14 septembre 2016 ; Vu Le Protocole Tripartite signe le 10 mars 2017 entre Ia Republique de Guinee, Ia Societe SCS Corporation Ltd et Ia Societe South Atlantic Petroleum Limited ; Vu Le Troisieme Avenant au Contrat de Partage de Production d'Hydrocarbures entre Ia Republique de Guinee, Ia Societe SCS Corporation Ltd et Ia Societe South Atlantic Petroleum Limited en date du 12 avril 2017 ; 1

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Le Contrat de Partage de Production d'Hydrocarbures signe le 22 septembre 2006 entre Ia Republique de Guinee et Ia Societe SCS Corporation Ltd tel qu'amende par le Premier Avenant en date du 25 mars 2010 et le Second Avenant en date du 14 septembre 2017 ; Vu Vu Le Protocole Tripartite signe le 10 mars 2017 entre Ia Republique de Guinee, Ia Societe SCS Corporation Ltd et Ia Societe South Atlantic Petroleum Limited ; Le Troisieme Avenant au Contrat de Partage de Production d'Hydrocarbures entre Ia Republique de Guinee, Ia Societe SCS Corporation Ltd et Ia Societe South Atlantic Petroleum Limited en date du 12 avril 2017 ; Vu Sur proposition du Directeur General de I'ONAP ; DECRETE Article 1er: Le Troisieme Avenant au Contrat de Partage de Production d'Hydrocarbures entre Ia Republique de Guinee, Ia Societe scs Corporation Ltd et Ia Societe South Atlantic Petroleum Limited, en date du 12 avril 2017, est approuve. Le present Decret qui prend effet a compter de sa date de signature sera enregistre et publie au Journal Officiel de Ia Republique. Article 2 : r2'"1 ,AVR. 2017 Conakry, le ................................... 2

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Exhibit 99.1

 

Hyperdynamics Receives Presidential Decree Implementing the Third Amendment to the Production Sharing Contract

 

HOUSTON, April 25, 2017 /PRNewswire/ — Hyperdynamics Corporation (OTCQX: HDYN) today announced that its wholly owned subsidiary, SCS Corporation Ltd., and its project partner, South Atlantic Petroleum (SAPETRO), have received notice of a Presidential Decree signed by the President of the Republic of Guinea implementing the Third Amendment to its Production Sharing Contract that was signed April 12, 2017 by the partners and representatives of the Government.

 

“The decree signed by Guinea President Alpha Conde implementing the Third Amendment to our Production Sharing Contract demonstrates the Guinea government’s support for Hyperdynamics and SAPETRO to move forward with exploration of our high-potential Fatala prospect starting later this spring,” said Hyperdynamics President and Chief Executive Officer Ray Leonard.

 

The Third Amendment approves the assignment of 50% of SCS’ participating interest in the Guinea concession to SAPETRO, and it confirms the two companies’ rights to explore for oil and gas on a 5,000-square-kilometer block offshore the Republic of Guinea. The contract requires that drilling operations begin on an initial exploratory well no later than May 30, and additional exploration wells may be drilled within the exploration period at the companies’ option.

 

The Amendment also reaffirms clear title of SAPETRO and SCS to the Concession and requires a $5 million security instrument to be put in place by SAPETRO and SCS within 30 days of the Presidential Decree. The security instrument is to be released when the drilling rig for the Fatala well enters Guinea territorial waters.

 

In addition to the earlier signed Farmout Agreement, SCS and SAPETRO agreed that SCS’s “sufficient financing for the Obligation Well Costs” shall be $15 million in “cash and committed financing to the satisfaction of SAPETRO acting reasonably” in addition to costs already incurred, which sets a clear objective for both Parties to work to.

 

About Hyperdynamics

 

Hyperdynamics is an emerging independent oil and gas exploration company that is exploring for oil and gas offshore the Republic of Guinea in West Africa. To find out more, visit our website at www.hyperdynamics.com.

 

Forward Looking Statements

 

This news release and the Company’s website referenced in this news release contain 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 Securities and Exchange Commission, including the Company’s Reports on Form 10-K for the fiscal year ended Jun 30, 2016 and Form 10-Q for the fiscal quarter ended December 31, 2016.  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.

 

Contact:

 

Ray Leonard, President and
Chief Executive Officer
(713) 353-9445

 

Anne Pearson/Jack Lascar
Dennard-Lascar Associates
(713) 529-6600