Hyperdynamics is traded on the American Stock Exchange under the symbol “HDY.”

Our headquarters is in Sugar Land, Texas, which is just southwest of Houston.

Our fiscal year begins on July 01 and ends on June 30.

Guinea is located in West Africa, between Guinea Bissau and Sierra Leone. Guinea sits in one of the world’s most prospect-rich areas for oil and gas exploration.

Hyperdynamics holds sole exploration and production rights to a 31,000-square-mile license area. This area is about the size of the state of South Carolina.

We have increased the value of our asset by conducting extensive geological and geophysical studies to evaluate its resource potential and to identify multiple targets for further study and future drilling. We believe these targets have the potential for world-class hydrocarbon discoveries.

The initial geophysical studies we have conducted indicate that there are very significant hydrocarbon-bearing structures present that have the potential for world-class reserves. We are continuing to study these indications.

The company sees potential development in the Lower Cretaceous section where most of the West African oil has been found to date, but additionally, there is the potential to explore deeper in the syn-rift Mesozoic basins within the Paleozoic section. The most important thing to understand at this point is that our area of focus at this point is the transform margin play, offshore the Republic of Guinea. Over the last three years, this play has resulted in at least 37 new field discoveries offshore West Africa.

Based on these and other indications, we believe the offshore area of Guinea has the potential for very significant hydrocarbon discoveries.

At a minimum, we will comply with requirements of our 2006 Production Sharing Contract to acquire, process, and interpret additional seismic data. Then, we will drill a minimum of two exploration wells. We aim to surpass all minimum requirements.

As part of our strategy to expand and accelerate our exploration work, we maintain an open invitation to other E&P companies which gives them the opportunity to partner with Hyperdynamics in exploring all or portions of the contract area on a farm-in basis. This will allow us to work more quickly than we could alone, and we will benefit from the additional experience and expertise of outside geoscientists and engineers.

So, we are on a parallel track to continue our own work on the Guinea project at the same time we are providing an opportunity for other oil companies to join our efforts. We are currently in the process of implementing new and extensive seismic survey.

We have received significant interest from a number of companies, and we have signed confidentiality agreements with many of them. Discussions are ongoing. The company is moving forward with its exploration plans. Our expectations are that as our exploration work moves further along, interest will increase commensurately.

We expect a minimum of cost recovery as part of any farm-out process.

The issue of operatorship will be decided on a case-by-case basis. The area is large enough to support many operators.

This will depend almost entirely on the geology of the specific target we are exploring.

Drilling timelines will only be determined after a thorough geophysical analysis has been completed. Additional seismic data will most likely be acquired and reviewed as part of this analysis. Rig availability will be an important factor affecting the time line of drilling a well. One should also recognize that multiple drilling programs will be needed to test the different targets that lie in shallow to deep water.

Depending on the water depth and the well depth, each well could cost $15 million to $50 million or more.

The type and cost of production facilities will depend on whether we find oil or gas, the water depth, and the location. Our targets range from shallow-water depths of less than 300 feet to deep-water depths of more than 3,000 feet. So, we estimate costs to be about $100 million to more than $1 billion to install the required infrastructure for a major field in waters offshore Guinea.

In the current oil and gas environment, funds are readily available for exploration and development from sources worldwide.

When a discovery is made, there will be a number of good options for funding construction costs of the required production facilities.

The issuance of shares is a decision made on a case-by-case basis. Management and the Board of Directors consider all factors and weigh all options when deciding whether to issue additional shares of stock. In the end, the decision is made in the best interest of the Company and its shareholders.

GlobalSantaFe did an assessment of the all the logistical requirements that must be managed when offshore drilling and production operations begin. This would include mobilization of materials, purchase of equipment, transportation and labor onshore and offshore that would be needed for drilling and production operations.

To date, only one exploratory well has been drilled on the entire 31,000 square mile concession. While this well (the Buttes #1), drilled in 1974, was abandoned, Hyperdynamics determined that it was poorly located and actually drilled on top of an igneous intrusive (volcanic-like structure). The well was not drilled on the more prospective basins within this study area that Hyperdynamics has determined to hold potential for substantial future reserves. The well data also contributed to the identification of several hydrocarbon systems within the shelf/slope sedimentary complex.

The government of Guinea earns a 10% royalty on production and a production share on the profit oil.

This has not yet been determined and will most likely be different depending on the individual farm-in proposals. Obviously, we will be looking to retain as large a piece of each project as possible, and we will be discussing and negotiating these terms with any potential partners.

Specifically, per the 2006 Production Sharing Contract, we are to acquire additional seismic data. In addition, we are required to drill 2 wells by 2018.

Yes. In 1986, Guinea enacted a Petroleum Code, and every Production Sharing Contract since then has been written in accordance with this code. In the Petroleum Code, it provides for the head of state or the minister assigned to the hydrocarbon sector to execute petroleum contracts. Our 2006 Production Sharing Contract is in full compliance with and written in accordance with the 1986 Petroleum Code of Guinea.

As with all developing nations, there are periods of angst and uncertainty, but Guinea has shown a remarkable amount of stability in a region not known for it. As a nation, Guinea is extremely motivated to find and develop energy resources. The work we are doing will help the economy of Guinea in terms of job creation, new foreign investment, and increased revenues for the government that could be reinvested into new infrastructure and social aide for its people.

In addition, in late September of 2007, the President of the Republic of Guinea sent a delegation to our headquarters in Houston in order to update the Guinean Government and to enhance cooperation so that exploration activities can accelerate.

Hyperdynamics has worked very hard to develop strong working relationships with members of the existing government as well as many other individuals and groups of influence throughout Guinea and the region of West Africa. We are continuing to work to ensure that the leadership in Guinea sees our work as a real solution to many issues they face today. The interests of Guinea and those of Hyperdynamics are well aligned.

American Friends of Guinea is a 501(c) 3 non-profit, tax-exempt organization founded by Hyperdynamics CEO Kent Watts to help bring medical and other relief to people of Guinea.

It will be funded with donations from shareholders and other interested parties and with a portion of proceeds when Hyperdynamics commences production in Guinea.  The fund has already received donations from several executives and directors of the company.

You can find more information on American Friends of Guinea at this address: www.AmericanFriendsOfGuinea.org

Currently the company has 49 active wells, with current production being derived from less than half of these wells. Oil production for November 2007 was approximately 3,400 barrels and is expected to continue increasing as additional wells and leases are brought online.

It is still very early to say fully how the acquisition has met our expectations, but it is safe to say that production is increasing and there is much work yet to be done. There still exist many wells that remain shut-in awaiting rework or re-completion. We also have numerous attractive drilling targets waiting to be drilled.

Our strategy is still to focus on relatively shallow oil reserves in proven areas, to expand our production, and grow revenues profitably. This strategy can be accomplished through acquisition, drilling, and increased efficiencies. More specifically, our near-term goal is 250 barrels of production daily, which we hope to accomplish very shortly. Subsequently, we are striving for 500 barrels of production daily. This goal will require drilling and/or additional acquisitions.

Outside of production, our service operations are beginning to take shape and are contributing to our revenues. Our mobile workover rig has been performing third-party service work for several months now and performing well. We hope to expand our service offerings in the coming months, focusing on well services such as pressure/vacuum rigs, well diagnostics, pipe testing, fabrication services, etc.

We are looking at making very calculated investments in our domestic operations, which are nominal, relative to our West Africa project.  We hope to fund most of our work programs and required maintenance from existing cash reserves and cash flows.  Funding for potential acquisitions can be derived from many sources and would depend on the circumstances and the specific acquisition.

The survey provides data pertaining to the magnetic signature of the substrata below the earth's surface. This kind of data when used in conjunction with seismic information, for example, can be extremely helpful in determining salt formations as opposed to igneous intrusions. More specifically, we know that salt formations have been drilled and identified with some discoveries to the north of our concession. Salt formations can be extremely good trapping mechanisms and confirming their existence in our concession would be significant. Getech provided the aerial magnetic survey.

The process of interpreting and integrating the aerial magnetic survey data is just now beginning; therefore, it is too early to comment on what we have learned.

If salt formations are detected and amplitude analysis suggests the existence of hydrocarbons, then a 3D survey directly over the structure might be indicated. Salt is a very complex trapping mechanism and, as such, a very clear picture must be gained in order to decide the best location(s) for drilling, which may require additional seismic and of course additional interpretation and analysis.

This information was announced to all share holders in the press release dated August 22, 2007.

We paid cash and all exploration costs are reflected in our financials.

The plans for the acquisition of additional seismic data are in progress. We hope to have more details in the near future as Mr. Jim Spear, our Vice President of Exploration and Production will be coordinating all efforts as they regard to our seismic acquisition program.

We have many options we are considering and will choose the best solution for our shareholders. See our filings for more specific details.

We are looking at making very calculated investments in our domestic operations, which are nominal, relative to our West Africa project.  We hope to fund most of our work programs and required maintenance from existing cash reserves and cash flows.  Funding for potential acquisitions can be derived from many sources and would depend on the circumstances and the specific acquisition.

We maintain open communications with several major oil companies around the world, but our current plans and timeline have shifted from reliance upon a farm-in proposal from an outside company. We are going forward with our exploration program and work requirements. It has also been determined that the company intends to expand its in-house capabilities to a level which will give us the option to operate ourselves. One of our first steps was the addition of Jim Spear as our lead exploration professional.

We have not yet determined our "first test drill locations" as we are expecting to acquire additional seismic that would need to be correlated with the existing body of data. Only after careful analysis and interpretation of the full spectrum of data would we begin the process of identifying drillable prospects for our "first test drill locations." This issue is compounded by the sheer size of the concession and the existence of countless geological points of interest.

In order to keep our shareholders abreast of our progress, we will most likely release information about the geological plays as we identify them, as we did in our press release dated August 22, 2007.

An excerpt from that press release: "Based on our analyses thus far, the possible plays and leads appear to include the Guinea-Bissau salt province, shelf carbonate build-ups, Paleozoic tilted fault blocks, Mesozoic half grabens, deltas and turbidities along with tertiary channel sands."

There are no specific plans at this time for the acquisition of 3D seismic data; however, it is well understood that in many cases 3D seismic data can provide a wealth of important information prior to selecting targets and commencing drilling operations. With that said 3D seismic will most likely play an integral part in our exploration process at some point in the future.

It is theoretically possible for a contracted rig to remain active in the offshore area of Guinea for months or years.

In this present environment of all time high oil prices, the industry has acute shortages in numerous operational areas. The most glaring of these shortages being trained exploration professionals. We have surmised over a number of months of discussions with potential joint venture partners that the operational capacity to staff a project on the scale of ours is lacking industry wide. For this reason, we have made the decision to assemble our own team of exploration professionals.

Thus, we have announced we are going forward with all necessary exploration work on our own at this time and intend to bring on the professional talent necessary to develop this asset and its potential. We see this strategy as the path that will serve the company best and provide the most value to our shareholders. The door remains open to the right joint venture partner(s) who can provide the appropriate level of operational capacity and partner with Hyperdynamics to explore and exploit this massive unexplored area.

We are not sure exactly what you mean, however gravity and magnetic studies provide additional information to further refine our understanding of the subsurface. Since we are performing the exploration work in house, these studies, as well as other types of studies, are but a part of the overall development of the concession. The scope and complexity involved in exploring and developing such a vast area requires the highest quality data, interpretation, and evaluation. All of this maximizes the success of development and drilling operations when they begin.

Salt is one of the very prolific trapping mechanism; therefore, most players in the exploration and production arena are interested in large salt formations, wherever they may occur.

We have already determined our best options to consider for the 36% to keep exclusively, maintaining priority rights in the remaining 64%.

The 2006 Production Sharing Contract allows for the conversion of rights on 64 percent of the contract area. This conversion will occur, if and when the Republic of Guinea exercises its rights by performing the following in no particular order: Project of Law passage by Guinea National Assembly, ruling by Guinea Supreme Court, and Guinea Presidential decree.

The agreed upon language of the contract regarding "priority rights" is satisfactory to us.

"We have the priority right to participate on a non-exclusive basis."

As a practical matter, according to the contract no other entity can obtain an exclusive right to the area without our participation.

We are the only entity with any rights to the 31,000 square mile concession.

This has not been a serious issue raised by other companies that we have met with.

NOTE: The term "ratification" is not applicable in this scenario. "Ratification" implies that the agreement must be "passed" before it is valid. This is not the case with the 2006 PSC. The preferred term is "codification", as this correctly implies that the contract is merely becoming "part of code/law" whereas currently it is in accordance with existing law known as the 1986 petroleum code.

One short-term benefit, practically speaking, is the positive perception the market seems to have toward such an event. Long term, we believe there will be a moderately positive impact, mainly in the realm of public perception, both in Guinea and internationally.

The 2006 Production Sharing Contract outlines that two test wells will be drilled by 2018, together with all required other work and extensions provided in our contract.

No, our understanding is that he is only an advisor and only if the Assembly seeks his input.

In Guinea, the President has the constitutionally given authority to appoint and change ministers at any time. They hold administrative positions created and empowered from the office of the President. Our experience has been that ministers change with relatively great frequency. The President and the members of the National Assembly are elected and the power to enact law resides with them. The judiciary is appointed by the President as are the provincial governors and commanders of the Army.

The existing law which governs the 2006 PSC has been in place for twenty years. The petroleum code of 1986 has been the basis for all work done since that time and has included several other contractors. The Petroleum code calls for our contract to be administered by the President or any minister he assigns. The code empowers the President or his designated minister to bind the country to the contract. The President assigned the contract to the Ministry of Mines in the fall of 2005 and we then negotiated for more than a year with two different Mining Ministers.

The negotiations were performed in an open and transparent manner and the proceedings were widely reported on through the Guinea press and media. The contract was signed and executed by the then sitting Minister of Mines, Dr. Sylla, and witnessed and affirmed as complying with Guinean law by the Minister of Finance. The celebration banquet was widely reported on and attended by a large number of officials from all parts of Guinean society including the President of the National Assembly, as well as executives of Hyperdynamics and The United States Ambassador to Guinea, Mr. Jackson McDonald.

As stated previously, the Minister serves at the pleasure of the President. He has no autonomous authority to "gut" anything. The President has the ability to reassign the contract to any minister he chooses at any time he chooses or to administrate it directly.

The contract is signed and the only changes will be by mutual agreement. We are satisfied with the language of the "priority rights" as it effectively protects our years of investment by allowing us to participate on a "priority" basis in any future development in that defined area.

As a practical matter, we feel this provision will motivate any company interested in this area to contact us before investing heavily in an area that has pre-existing rights. If there are amendments that the government of Guinea would like to propose we welcome them and will give such proposals all due consideration.

It is important to understand that the forecasts and plans of any company are not made in a vacuum, devoid of outside forces and variables. When plans are made and programs are initiated they are based on certain facts and assumptions available at the time. When events occur which materially affect those plans, then it is the responsibility of management to adjust accordingly.

The current environment of the world energy markets has been a major catalyst in our shift in operational strategy. We believe these to be positive changes that will reap rewards for our shareholders.

The company has published clear press releases that the 2006 Production Sharing Contract is legal and binding and the Project of Law procedure is at the sole option and discretion of the Republic of Guinea. It has also made public through an SEC 8K filing its legal opinion covering the subject.

Details concerning who we have talked to, what they have said, and what their questions, concerns, comments and/or offers are strictly confidential and covered under Confidentiality Agreements. Details will be made public when appropriate.

From a practical business standpoint, we expected the government would have wanted us to undertake a thorough exploration and evaluation of the whole area before considering the Project of Law. We were more surprised by the perceived value the market and media have placed on this possible event, as it does not change our contract in any meaningful or practical way.

Per our understanding, the Guinean Assembly can act by special commission, drawn from the different political parties, which has the full authority of the Assembly. There is no requirement for "validation" by a full vote or a review by the court. We have been informed that the Production Sharing Contract is at the National Assembly.

We are pleased with the current form and substance of the 2006 Production Sharing Contract. We have no plans for changes or renegotiating at this time.

The 2006 Production Sharing Contract was executed in cooperation with the Guinean government and specifically utilizes the procedure of notification as opposed to permission. The Production Sharing Contract itself authorizes petroleum exploration operations in the contract area.

To the best of our understanding, elections are to be held in December 2007; however, elections were also schedule for July 2007 and were postponed. Our contract with Guinea is not aligned with any particular individual or faction within the country and as such, is unaffected by national elections.

As we have stated, this procedure is at the sole discretion of the Republic of Guinea and its government. We cannot and will not speculate as to their political agendas or strategies.

The internal dialogue occurring between Hyperdynamics and Guinea, is of course sensitive information. We are very pleased overall with the progress we have made, both in terms of our relationship with the government, as well as our progress operationally.

The information contained in the study performed by GlobalSantaFe is considered proprietary and the details are not for public disclosure.

Approximately $250,000

None of these items can be commented on at this time.

We are in the middle of this process as previously announced.

No they are retired.

This is currently in progress as we have announced.

He is a lobbyist before the Guinean Government.

The warrant price was dropped to facilitate the receipt of 5 million dollars in capital. This decision was made by the Board of Directors.

These warrants were granted to Michael Watts for consulting services.

Please refer to the 10K and applicable press releases for information. This information changes almost daily.

Please refer to the 10K and applicable press releases, as this information changes frequently due to ongoing operations.

The natural gas that was found and reported on did not maintain economical quantities. We have no immediate plans for marketing natural gas at this time.

It is the policy of our management and Board of Directors to not allow participation by its employees and affiliates in public message boards as it regards the company and its activities.

NOTE: In light of the November 28, 2007 SEC amendment concerning "Company Sponsored Electronic Forums," Hyperdynamics has initiated this "Ask the Company" forum. We hope that this forum will allow for a more open and detailed disclosure of operations. Please submit any and all questions through the company website. www.hyperdynamics.com

Investor Awareness has the responsibility to introduce new investors to our company and manage our investor relations. Their role will expand in step with our market activities and scope.

Yes there are possible pending stories and we are paying them.