Hyperdynamics' CEO Reports Valuable Progress and Superb Positioning for 2008

First 3-D Seismic In History Specified for Offshore Guinea
HOUSTON--(Business Wire)--Hyperdynamics (AMEX:HDY) today announced that its board of
directors has set its annual shareholder meeting, regarding its fiscal
year end June 30, 2007, for Wednesday, February 20, 2008 at 10:00 AM
CST. The meeting will be for shareholders of record as of January 2,
2008, and will be held at Sugar Creek Country Club in Sugar Land,
Texas. Details have been filed with the SEC on Schedule 14A.

The following is this year's shareholder letter written by the
Company's Chairman and Chief Executive, Kent Watts.

"January 14, 2008

To our Shareholders:

We greatly appreciate your support over this past year. I believe
that our market and you, our shareholders, will soon clearly
understand that we have made valuable progress in the past year and
that we are positioned to have a fantastic 2008.

This past year has challenged us in many ways. We are exploring
for world-class oil and gas reserves in a 31,000 square mile offshore
concession that is in the hottest exploration region in the world.
Hereunder I will explain our company's major progress. However, to
first set the stage, I believe that you should be aware that in the
past year we have encountered intense petro-politics. The world's
energy shortage is growing more acute every day and at the same time
our asset becomes more valuable. We have successfully dealt with
political attacks all year and this is why a strong presence in Guinea
has been our number one priority and has produced our number one
achievement.

In 2008 we are focused more deeply than ever on our exploration
work, while our business and political status in Guinea continues to
grow. I have five categories to report about that reflect our progress
in 2007. They are:

1) Guinea political and business status,

2) Joint venture partner status,

3) 2007 exploration program accomplishments,

4) Status of building our internal exploration team, and

5) Our superb positioning for success in 2008.

Guinea political and business status

Our organization in Guinea, led by our Vice President of Guinea
Affairs, Mr. Famourou Kourouma, has a strong organizational foothold
inside Guinea and our in-country team is formidable at protecting our
interests.

A presidential delegation, led by Secretary General of the
President of the Republic, Mr. Sam Mamady Soumah, visited us in Sugar
Land, Texas in September 2007. After the Secretary General's report to
the Chief of State, President Lansana Conte, the President invited me
to visit Guinea and to report on our investment and exploration plans.
As a result of our work in Guinea, the President's office deals
directly with us regarding the 2006 Production Sharing Contract and we
have been told to expect more positive changes in their government
that will help us streamline and accelerate our work in the near
future. On December 5, 2007, a presidential decree clarified
substantial far reaching powers of the Secretary General to administer
the government. On December 10, 2007, former Assistant Secretary of
State for African Affairs, Mr. Herman (Hank) Cohen, traveled with us
to Guinea. Our group met with the President, the Secretary General,
and the President of the National Assembly, Mr. Aboubacar Sompare. In
these meetings, we were consistently assured that positive changes
were in process. Hank, Famourou, and I also met with US Ambassador to
Guinea, Phillip Carter III. It's important for you to know that we
continue to have the U.S. government's support and the Guinea
government is aware of such support. In August 2007, Ambassador Carter
replaced former Ambassador Jackson McDonald as US Ambassador to
Guinea. Over the last few years we have worked extensively with
Ambassador McDonald who was extremely supportive and consistently gave
us valuable political guidance. Since then, we are continuing with
Ambassador Carter regarding all our work in Guinea. This last year we
also began working with our local Congress members. We engaged the
lobbyist firm Patton Boggs this year to protect our interests in
Washington D.C.

As part of our corporate responsibility goals, Hyperdynamics
supported efforts by American Friends of Guinea that helped to save
lives of many children during a very serious cholera outbreak. Our
combined public relations strategies and humanitarian efforts in
Guinea have raised our business profile in Guinea as a responsible
corporate citizen.

Joint venture partner status

Early in 2007 we solicited potential joint venture partners to
join our exploration efforts offshore Guinea. During the year we
signed approximately 20 companies to confidentiality agreements and
held meetings to evaluate their level of interest. In the process, by
the middle of the year, we determined that, while we remain open to
negotiating joint venture arrangements, we could achieve much greater
shareholder value by first advancing our exploration efforts to the
point of having a portfolio of drillable prospects. Most of the
potential partners expressed interest in our project and have asked
for updates on our progress. We attend monthly meetings as a member of
the West African scout group whose participating oil companies invest
in exploration and production projects offshore West Africa. This
provides us a forum to present regular updates to many of the
companies that may have an interest in partnering with us in the
future. We believe our efforts this year have provided a foundation to
build on. We continue to talk with potential partners on an ongoing
basis and expect the interest in our project to grow substantially in
2008.

2007 exploration program accomplishments

Our exploration work this year has resulted in major progress. In
August we ramped up our 2007 exploration program towards developing
our hydrocarbon plays in our concession. From our information base
developed from previous exploration programs since 2002, we designed
and implemented our going forward exploration program. To date, our
studies comprise the largest knowledge base in existence concerning
the Guinean offshore region and the 2007 program continues to build on
this critical information base. We acquired additional 2-D seismic
from a third party together with gravity and magnetics data and began
to reinterpret as many as 25 leads from our seismic database. The
reinterpretation of our satellite oil seeps study reported the
existence of light crude oil seeps in our concession. Our historical
exploration efforts have identified plays such as the Guinea Bissau
salt province, Lower Cretaceous/Upper Cretaceous slope-fan deposits,
Paleozoic tilted fault blocks, Mesozoic syn-rift half grabens,
Tertiary deltas and turbidites along with Tertiary channel sands. Our
exploration work since August 2007 has verified that we have the
Transform Margin fairway in our concession. This is part of the same
play that has produced at least 39 discoveries offshore West Africa
collectively containing a world-class level of oil reserves. Based on
our critical work in 2007 we can prioritize our activities and we are
currently scrutinizing the Transform Margin play. Our 2007 program was
a major success that is leading us in the right direction for a future
world-class discovery of our own.

Building our internal exploration team

We have taken major steps and embraced our original strategy to
build a formidable exploration team. This last year we made the
decision to bring our core exploration team in-house and to add
extensive oil and gas exploration and production experience to our
board of directors and corporate management team. This decision was
critical for positioning us to accelerate our timelines for
exploration, to retain more value, and to maximize returns for our
shareholders. We hired Mr. James R. Spear as our Vice President of
Exploration and Chief Geophysicist. His past experience includes
working successfully in 42 major hydrocarbon basins around the world.
His enthusiasm and depth of experience is the cornerstone of our
efforts to build our exploration team. Jim is leading the process of
assembling our in-house team and we expect to make additional
announcements as we bring on new talent. In December, Mr. Charles H.
Andrews joined Hyperdynamics' Board of Directors as a next step to add
exploration experience at the top. Currently we continue to evaluate
potential board members and to recruit additional geoscientists and
geo-technical personnel. We are dedicated to building our board and
exploration team and we will be steadily assessing appropriate
additions as we move forward in 2008. As part of an extensive forward
2008 exploration program, our exploration team has configured multiple
grids over several prospects for Guinea's first 3-D seismic data
acquisition in history. Our future announcements will provide updates
about the 2008 program.

Our superb positioning for success in 2008

It is my sincere hope that you are assured that we are doing the
right things to provide greatly enhanced shareholder value in the
future. We have a steadily growing relationship with Guinea and have
built a strong foundation for extended discussions and negotiations
with many potential joint venture partners. Additionally, based on the
positive results of our 2007 forward exploration program, we have
advanced and refocused our exploration efforts to hydrocarbon plays
that have world-class levels of proven results in West Africa.
Finally, we have made major progress in establishing a highly
experienced and successful exploration ability in-house, giving
management technical control of our exploration process. We are now
prepared to move forward with 3-D/2-D seismic data acquisition
programs that should increase our chances for drillable prospects and
ultimately a discovery.

We are superbly positioned for realizing the value of our oil and
gas concession offshore Guinea. I would ask you, our shareholders, to
recognize the progress we have made and to understand the extensive
work ahead for us. We most certainly appreciate each of you and I am
asking for your continued support towards the goal of making a
world-class discovery. Thank you for your investment and keep watching
for our updates.

Warmest Regards,

Kent P. Watts

Chairman and Chief Executive"

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

for Hyperdynamics
Investor Awareness, Inc.
Tony Schor or Lindsay Kenoe, 847-945-2222
www.investorawareness.com
or
Roher Public Relations
Phillip Bergman, 914-238-2200, ext 302
Vice President

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