To accelerate activity, HDY is currently seeking to partner with international oil & gas companies that bring experienceand resources to the region. The farm-out program allows qualified companies an opportunity to review HDY’s proprietary data for a licensing fee, and submit partnership bids upon conclusion of the data review period.
HDY will hold meetings with interested parties during the first calendar quarter of 2007, where HDY will discussadditional information on the PSC, targets identified by HDY, and the geology and geophysics of the area. Interested parties will have an opportunity to review all of HDY’s geologic and geophysical data, which includes 5,000 kilometers of proprietary 2D seismic, independent studies from PGS and GlobalSantaFe, as well as internal analysis from HDY.
The Company will license this data package for a limited review period and on a confidential basis. HDY will collect a fee from each company that chooses to examine the data package, and expects to book associated licensing fees during the second calendar quarter. Upon final review of the data package, companies can submit partnership farm-in proposals.
HDY anticipates negotiations of such farm-in proposals to commence during the third calendar quarter of 2007.