Hyperdynamics urges shareholders to approve reverse stock split
Hyperdynamics Corporation, soon to spud its 650 mboe Fatala prospect in Guinea, has reminded owners of its of its common stock to submit their vote on a company proposal that would authorize its board of directors at its discretion to implement a reverse stock split.
The company is working to get the approval in order to raise its share price above $4.00, which is a minimum required standard to list a company on a national securities exchange.
“Our Common Stock is currently traded on the OTC Markets OTCQX marketplace, which is a relatively thinly traded market and lacks the liquidity than may be provided by a stock exchange such as The Nasdaq Capital Market,“ Hyperdynamics said on Tuesday.
The company is working to get listed, and raise cash for drilling operations offshore Guinea, by attracting a broader range of investors.
In a recent presentation, the company CEO Ray Leonard said the share split was only an option “which we do not intend to use unless it’s necessary for our share price to reach the required level for an uplift,” meaning the split won’t be needed if the share prices reaches $4.00 by other means.
Hyperdynamics is set to spud the 650 mboe Fatala-1 well using the Pacific Scirocco drillship come August.
Subject to positive drilling results, the company plans to drill another exploration well the Bamboo, of recoverable resource estimate at 560 million barrels of oil on the primary sand.
Offshore Energy Today Staff