Houston-based oil and gas company Hyperdynamics Corporation said it received a subpoena from the U.S. Department of Justice in September requesting documents relating to its business in the African country of Guinea.

The company said it believes the investigation is focused on whether its ‘activities in obtaining and retaining the Concession rights and [its] relationships with charitable organizations potentially violate the [Foreign Corrupt Practices Act (FCPA)] and anti-money laundering statutes.’

Charitable contributions can violate the FCPA if they benefit government officials and are intended to obtain or retain business or gain an unfair advantage.

Hyperdynamics said it has hired lawyers and is cooperating with the government.

It made the disclosures in its latest quarterly report filed with the U.S. Securities and Exchange Commission last week.

The company is an independent oil and gas exploration and production company. It’s currently exploring offshore areas near the Republic of Guinea.
Hyperdynamics’ holds a 37% non-operator interest covering approximately 25,000 square kilometers of acreage located offshore Guinea, ‘one of the largest exploration and production licenses in West Africa,’ it said.

Its partners in the Guinea project are Tullow Oil Plc and Dana Petroleum E&P Ltd.

‘We are unable to predict when the investigation will be completed, what outcome will result and what costs we will incur in the course of the investigation,’ the company said.
Hyperdynamics Corporation was founded in 1996 and is traded on the NYSE under the symbol HDY.

This story was first reported by the FCPA Blog and appears here courtesy of that publication.


Leave a Reply