Hyperdynamics

[malpar314]

Hyperdynamics, HDY, is spudding the first well of a 2 well program offshore Guinea in west Africa.
There is an interesting presentation at http://files.shareholder.com/downloads/ ... y_2011.pdf

[dan_s]

IMO HDY is a "Lottery Ticket". It is not for everyone but it definitely has significant upside. Keep in mind that if these two well are dry holes the company may disappear.

[malpar314]

HDY has a huge concession, and many of the better plays appear to be furthur offshore, in deeper water. Even if the first 2 wells are dry holes, I do not think the stock would be worthless. I believe their partner is the Korean National Oil Company, so HDY is not alone in funding and sharing risk.

[dan_s]

It does have HUGE upside. Lots of oil sits offshore West Africa.

Our "lottery ticket" in the Sweet 16 is FX Energy. Their Kutno-2 well is testing what may be the largest trap in Europe.

Just keep in mind that these international projects take a long time.