Hyperdynamics Corporation (OTCMKTS:HDYN)

Hyperdynamics Corporation (OTCMKTS:HDYN) Shares Crash

Hyperdynamics Corporation (OTCMKTS:HDYN)

Hyperdynamics Corporation (OTCMKTS:HDYN) shares fell 93.85% after announcing it did not encounter any hydrocarbons at the Fatala-1 Exploration well in the Republic of Guinea. The news rattled investors who in return pushed the stock to this year’s lows of $0.09 a share.

Hyperdynamics Stock Sell-Off

Prior to the disappointing news, the stock had been trading in a range but has since resorted to a strong downtrend. The stock is starng at its 52-week low of $0.05 as it continues to trade in a $0.05-0.14 trading range.

The spectacular collapse does not come as a surprise as investors were expecting positive news from the well in the North West Africa nation. The stock had previously spiked from the $1.50 level to highs of $2.00 in anticipation of a positive outcome from the drilling operations

Hyperdynamics Corporation (OTCMKTS:HDYN) is a Texas-based, independent oil and gas exploration company with prospects in the Republic of Guinea. The Fatal-1 exploration well drilling project is the company’s lead project and is part of a 50-50% partnership with SAPETRO, a privately held oil and gas exploration and Product Company with assets in West and East Africa. The company also owns 100% interests in concessions of about 7,238 square miles in offshore Guinea

The company had drilled 2,897 meters of water and reached a total depth of 5,117 meters below sea level, making it the deepest water well ever drilled in Africa. Hyperdynamics says it’s drilled the well within the expected budget.

“We are very disappointed at the results of Fatala-1, considering the extremely promising geophysical data on the prospect […] in the very near future, we will be studying the results of the well and evaluating any future options we may have for further activity in Guinea,” said Ray Leonard, Hyperdynamics’ President and Chief Executive Officer.

Private Placement

Separately, Hyperdynamics Corporation (OTCMKTS:HDYN) has confirmed the completion of a private placement of the company’s securities. Each unit on offer consisted of one share of common stock and warrants for the purchase of three-quarters of a share of the company’s common stock exercisable within two years.

Gross proceeds from the offering totaled $3.7 million pending deductions of placement agent fees and other expenses pertaining to the offering.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.