HYPERDYNAMICS CORPORATION

INDUSTRY

Energy / Utilities

CORPORATE HEADQUARTERS

Houston, Texas, United States of America

SUMMARY OF ALLEGATIONS

Nationality of Foreign Officials: Guinea

Summary of Allegations:

Houston-based oil and gas company Hyperdynamics said it received a subpoena from the U.S. Department of Justice ("DOJ") in September 2013 requesting documents relating to its business in the African country of Guinea. The company received a subpoena from the U.S. Securities and Exchange Commission ("SEC") in January 2014, also relating to its business in the African country of Guinea.

According to Hyperdynamics' Form 10-Q filed with the SEC in November 2013, the company 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 FCPA and anti-money laundering statutes." 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." Its partners in the Guinea project are Tullow Oil Plc and Dana Petroleum E&P Ltd.


Approximate Alleged Payments to Foreign Officials: Unspecified

Business Advantage Allegedly Obtained: Unspecified

ENFORCEMENT RESULTS

Agencies: United States: Civil Lawsuit
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:

In March 2014, media reports that class action lawsuits have been filed in the United States District Court for the Southern District of Texas on behalf of a class comprising all purchasers of the securities of Hyperdynamics Corporation between November 8, 2012 and March 11, 2014, inclusive, for making false and/or misleading statements or failing to disclose material adverse facts, including that Hyperdynamics lacked adequate internal and financial controls and the Company obtained and retained oil-and-gas concession rights in violation of the FCPA and/or U.S. anti-money laundering statutes. On 25 August 2015, Texas federal judge dismissed an investor class action.



Agencies: United States: Department of Justice, United States: Securities and Exchange Commission
Results: Cease-and-Desist Order, Civil Penalty, No Action
Year Resolved: 2015
Compliance Monitor:
Ongoing: No
Details:

The DOJ and the SEC sent subpoenas in September 2013 and January 2014, respectively, concerning Hyperdynamics? business in Guinea.

On 22 May 2015, Hyperdynamics announced that the DOJ had closed its investigation and would not be bringing any charges against the company.

On 29 September 2015, Hyperdynamics announced that the company settled alleged FCPA books and records and internal controls offenses with the SEC. The company consented to the entry of an administrative cease-and-desist order without admitting or denying the SEC's findings and agreed to pay USD 75,000 penalty to the SEC.

 



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