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HDY - Hyperdynamics Corp

Hyperdynamics is a Texas company with a very small market cap of only $120 million. Somehow HDY has managed to acquire a 31,000 square mile offshore lease with the Republic of Guinea. How they acquired the lease along with production rights is a long story but suffice to say they are poised to reap windfall profits in the not too distant future.

They are relatively unknown and their stock trades for only $2.44 but that is a significant improvement from the $1.44 just two weeks ago. The spike came from the announcement and analyst discussions after they reported results from a two-year period of seismic exploration that suggested "world class" carbon deposits. They went back to the Guinea government with their results and negotiated a profit sharing agreement and drilling rights to the entire 31,000 square mile block. Currently the Guinea National Assembly and Ministry of Mines is reviewing the profit sharing agreement and is expected to pass it into law giving HDY security in case future administrations change. Once this agreement is put into law HDY said exploration and production would be placed on a fast track. HDY is currently in talks with multiple prospective partners for drilling rights. HDY may never drill a well itself but contract that to other companies while retaining the profits. It is the perfect deal if HDY can pull it off and with them 5 years into the project and potentially days away from the Assembly ratifying the agreement the outlook is bright.

The outlook is bright for us as well. With HDY stock at 2.44 and less the cost of most leaps we have an inexpensive opportunity to capitalize on a growing opportunity with no expiration date and minimal risk. Despite the recent spike I am recommending we take a position now before the Guinea Assembly passes the agreement into law.

BUY HDY stock currently @ $2.44


 

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