Hyperdynamics Corporation reported that its wholly owned subsidiary, SCS Corporation Ltd, has completed the previously announced sale of a 40 percent gross interest in the company's oil and gas exploration concession offshore Guinea to Tullow Guinea Ltd., a subsidiary of U.K.-based Tullow Oil plc.

Guinea's Ministry of Mines and Geology formally approved the sale by issuing an Arrete on Dec. 27, the transaction closed today, and Tullow has transferred the $27 million cash payment to SCS. Tullow will also carry SCS' participating interest share of future expenses, up to a gross expenditure cap of $100 million, from the date of entry into the next exploration period until 90 days after the drilling of the well.

The parties intend to begin drilling a well to test a deepwater fan prospect in the concession before April 1, 2014. Tullow will also carry SCS' share of costs associated with an appraisal well of the initial exploration well, if drilled, subject to an additional gross expenditure cap of $100 million.

Tags: Hyperdynamics Corporation