2010-01-12-2009-12-07

To acquire 23% interest in concession covering all offshore Guinea.

Dana Petroleum (E&P) Ltd., a subsidiary of Dana Petroleum Plc, Aberdeen, Scotland, (London: DNX) plans to acquire a 23% interest in an oil and gas concession encompassing all of offshore Guinea from Hyperdynamics Corp., Sugar Land, Texas, (NYSE Amex: HDY) for $19.6 million in cash or cash and shares. According to Hyperdynamics, the agreement is "broadly similar" to the letter of intent the two companies signed in mid-October, which stated a purchase price of $20 million for the interest in the 31,000-square mile concession, which covers all of offshore Guinea. Upon closing, Dana will pay a pro rata portion of accrued expenses associated with the company's ongoing 2-D seismic program. The $19.6 million will be paid after a review by the government of Guinea and Hyperdynamics of their 2006 production sharing contract, pursuant to the terms of a memorandum of understanding signed in September. The review is expected to be completed by March 2010, with the deal expected to close by Jan. 31, 2010. In late November, Hyperdynamics signed an agreement with Spanish-based Repsol YPF SA under which the two companies would negotiate and assign Repsol a 37% interest in the concession by Jan. 31, 2010. The separate agreement between Hyperdynamics and Dana stipulates that if the letter of intent with Repsol terminates without a successful assignment, Hyperdynamics would have 90 days to find an alternative company with the financial and technical capability to operate off the coast of West Africa. After the 90-day period, Dana has the option to negotiate for an additional 27% of the concession, with consideration to be separately negotiated, and to be designated operator of the Guinea concession.