Boston, MA 03/20/2014 (wallstreetpr) – All that it took to get shares of Hyperdynamics Corporation (NYSE:HDY) up again after that unfortunate announced from Tullow, was a response to “higher force” assertion.
Shares of the oil company fell when its partner Tullow asserted force majeure claim and suspended drilling plans in offshore Guinea. But on Wednesday, just when Hyperdynamics wrote to the Guinea government and partner Tullow to raise issue with the unilateral decision, shares got wings and flew up 7.81 percent to $2.07 by closing bell. The shares had earlier gone up to $2.15.
Tullow’s conduct
Tullow is Hyperdynamics Corporation (NYSE:HDY)’s partner in drilling activities in Guinea and North Africa. The company had almost finalized plans to commence an exploratory well drilling in offshore Guinea. But without warning, Tullow announced that it was not possible for it to maintain the agreement, citing force majeure, or what literally means “higher power.” And that “higher power” has something to do with the U.S. investigations of Hyperdynamics.
The U.S. investigations
Hyperdynamics Corporation (NYSE:HDY) revealed its various regulatory filings that between September 2013 and January 2014 it received subpoena from the U.S. Department of Justice and Securities Exchange Commision (SEC). The subpoenas required the company to produce some documents relating to its business activities in Guinea. And recently, Shuman Law firm announced that it was investigating Hyperdynamics. The investigations are reported to unearth if the company’s practices in Guinea violate U.S anti-money laundering laws or even the Foreign Corrupt Practices Act.
It is perhaps on the view of these investigations that Tullow felt there was too much “higher power” to commence the drilling in offshore Guinea as earlier agreed.
Nothing like it
But according to Hyperdynamics Corporation (NYSE:HDY), there is nothing like force majeure in the whole thing to warrant suspension of the drilling project as Tullow claimed. The company said that a force majeure did not occur and that Tullow acted without bringing the issue up for discussion. Thus, in order to recommence the drilling project, the company said it was having additional communications with the parties concerned, but at this juncture, there is no betting on the timing or even the outcome of the ongoing talks.
