Hyperdynamics Signs Letter of Intent with Dana Petroleum for Participating Interest in Guinea Oil and Gas Concession

Hyperdynamics Signs Letter of Intent with Dana Petroleum for Participating
Interest in Guinea Oil and Gas Concession

SUGAR LAND, Texas, Oct. 19 /PRNewswire-FirstCall/ -- Hyperdynamics Corporation
(NYSE Amex: HDY) today announced it has signed a letter of intent with
Aberdeen-based Dana Petroleum PLC (LSE: DNX) under which the two companies
will negotiate the assignment of a 23 percent participating interest in
Hyperdynamics' oil and gas concession offshore the Republic of Guinea.

The letter of intent, which is non-binding and gives Dana exclusive
negotiating rights for the 23% share, calls for Dana to take a participating
interest in Hyperdynamics' concession in exchange for total consideration of
U.S. $20 million. This includes $5 million in cash payable upon execution of
the definitive agreements and, where applicable, their entry into full legal
effect pursuant to the laws of Guinea. The remaining $15 million is payable
at Dana's option in either cash or newly issued ordinary shares of Dana. It
would be paid upon the conclusion by March 2010 of a review by the government
of Guinea and Hyperdynamics of its 2006 Production Sharing Contract pursuant
to the terms of a Memorandum of Understanding signed in September and the
effectiveness of any resulting revisions or amendments. There would be no
restriction on the immediate resale of these shares by Hyperdynamics.

The letter of intent with Dana contemplates that the two companies will work
to sign definitive documents no later than December 31, 2009; the letter of
intent otherwise terminates unless extended by further agreement. Dana has
the option to negotiate with Hyperdynamics to take up to an additional 27
percent of the concession, with consideration to be separately negotiated, if
Hyperdynamics does not sign a letter of intent for a participating interest
with an additional exploration and production company with the financial and
technical capability to operate in deep water off the coast of West Africa by
November 30, 2009.

"With a strong record of successful exploration and production activities in
the North Sea and ongoing exploration in West Africa in Mauritania and
Senegal, Dana is the kind of partner Hyperdynamics has been seeking to supply
additional technical expertise and help us accelerate exploration of our
offshore Guinea concession," said Ray Leonard, Hyperdynamics' President and
Chief Executive Officer.

"We intend to begin a new 2-D seismic survey at the end of this month, and we
look forward to working in partnership with Dana to help us evaluate the
results of the new data and select which portions of our 31,000-square-mile
contract area to retain for future exploration under our Production Sharing
Contract and the more recent Memorandum of Understanding with the government
of Guinea," Leonard said.

Based in Aberdeen, Scotland, Dana has both production and exploration
operations in the North Sea and Egypt, as well as additional exploration
activities offshore Mauritania, Morocco and Senegal. It is traded on the
London Stock Exchange, with a market capitalization of approximately U.K. 1.3
billion pounds Sterling. Dana reported that last year it produced more than
39,000 barrels of oil equivalent per day and had proved and probable reserves
of 194 million barrels of oil equivalent at year-end 2008.

About Hyperdynamics
Hyperdynamics is an emerging independent oil and gas exploration and
production company that is exploring for oil and gas offshore the Republic of
Guinea in West Africa. To find out more, visit our website at
www.hyperdynamics.com.

Forward Looking Statements
This news release and the Company's website referenced in this news release
contain forward looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, regarding Hyperdynamics Corporation's future plans
and expected performance that are based on assumptions the Company believes to
be reasonable. Statements preceded by, followed by or that otherwise include
the words "believes", "expects", "anticipates", "intends", "projects",
"estimates", "plans", "may increase", "may result", "will result", "may
fluctuate" and similar expressions or future or conditional verbs such as
"will", "should", "would", "may" and "could" are generally forward-looking in
nature and not historical facts. A number of risks and uncertainties could
cause actual results to differ materially from these statements, including
without limitation, funding and exploration efforts, fluctuations in oil and
gas prices and other risk factors described from time to time in the Company's
reports filed with the SEC, including the Company's Annual Report on Form 10-K
for the fiscal year ended June 30, 2009. The Company undertakes no obligation
to publicly update these forward looking statements to reflect events or
circumstances that occur after the issuance of this news release or to reflect
any change in the Company's expectations with respect to these forward looking
statements.

HDY-IR

Contacts: Dennard Rupp Gray & Easterly, LLC
Ken Dennard, Managing Partner
Jack Lascar, Partner
(713) 529-6600
Anne Pearson, Sr. Vice President
(210) 408-6321

SOURCE Hyperdynamics Corporation

Ken Dennard, Managing Partner, or Jack Lascar, Partner, +1-713-529-6600, Anne
Pearson, Sr. Vice President, +1-210-408-6321, all of Dennard Rupp Gray &
Easterly, LLC