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Hyperdynamics Shows Steady Increase in Domestic Oil Production

Posted on: Thursday, 15 November 2007, 09:00 CST

Hyperdynamics Corporation (AMEX:HDY) announced today that its domestic oil producing subsidiary, Trendsetter Production Company, is now reporting a steady increase in its domestic oil production with a combined daily production of approximately 150 barrels of oil produced daily (bopd). This includes both leases it operates and others in which it owns a non-operating working interest. This reflects a notable increase over its estimated average production of 50 bopd for its quarter ended September 30, 2007.

Since late in its first fiscal quarter ending September 30th, the company began to realize a steady climb in production. This was partly a result of its acquisition in early July of an 85% working interest in 1,100 acres in Northeast Louisiana. The acquisition led to the first phase of the company's production enhancement strategy. The strategy included an intense optimization work program that included heavy maintenance, upgrades, remedial work-over services, recompletions, and salt water well repairs. So far, a total of fifteen wells have been reworked and put into production at higher levels than before. Additionally, seven more wells are scheduled currently for minor-cost optimization and to begin producing as well. More than half of the first phase work was completed by September 30th and since then, with additional work completed so far this quarter, the company has seen production continue to rise as planned. Management reports that it will maintain a strategy to yield sustained production with a steady increase to optimum levels for each of its producing leases. The company plans to regularly consider new maintenance procedures and technology, continually evaluating ways to cost effectively optimize production operations.

When asked to comment, Mr. Jeremy Driver, President of Trendsetter Production Company stated, "We are encouraged by our progress and optimistic that we can continue this positive trend. Currently we are executing a work plan that includes a nominal amount of low-cost fine tuning procedures that we believe will allow us to achieve 250 bopd by the end of 2007. Upon reaching this goal, we have as many as eight development well prospects, of which we would expect to drill at least four beginning next quarter. Our criteria for drilling these will be a minimum expectation of 25 to 30 bopd for each. We will also continue to evaluate other similar opportunities to acquire additional producing leases with strong development upside."

Mr. Kent Watts, Hyperdynamics' Chief Executive, stated that, "We are very close to realizing one of our major objectives for positive results from domestic operations. At the same time we are continuing to develop our portfolio of prospects in our West African concession. As oil prices currently hold at over $90 per barrel, the progress we have made so far this year, both internationally and domestically, is very significant to our company."

About Hyperdynamics

Hyperdynamics Corporation provides energy for the future by exploring and producing sources of energy worldwide. The company's internationally active oil and gas subsidiary, SCS Corporation, owns rights to explore and exploit 31,000 square miles offshore the Republic of Guinea, West Africa. HYD Resources Corporation focuses on domestic production in proven areas. To find out more about -Hyperdynamics Corporation, visit our Website at http://www.hyperdynamics.com.

Forward Looking Statements

Statements in this news release are "forward looking" as defined by the U.S. Securities and Exchange Commission and are based on expectations, beliefs or projections that are subject to numerous risks and uncertainties. Investors are cautioned that these statements are not guarantees of future performance, and actual results could differ materially. Please refer to "Risk Factors" in the company's Form 10-K filed with the SEC.

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HDY-IR

Source: Business Wire

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