Guinea: Hyperdynamics warns of new cash problems

Houston-based Hyperdynamics has warned of renewed cash problems as legal costs related to its Guinea operations loom. Tullow Oil took over as operator in the country’s offshore acreage earlier this year and will carry Hyperdynamics for up to $100m on its share of costs of a well planned for H1 2014, but the company is in dispute with AGR Well Management over cost overruns from the Sabu-1 dry well drilled in 2011, and is also under investigation by the US Department of Justice over potential breaches of the Foreign Corrupt Practices Act (AE 263/18).