Hyperdynamics (HDYNQ) Inactive 10-Q6 Nov 142015 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Sep. 30, 2014	Nov. 03, 2014
Document and Entity Information	'	'
Entity Registrant Name	'HYPERDYNAMICS CORP	'
Entity Central Index Key	'0000937136	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--06-30	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	21,046,591
Document Fiscal Year Focus	'2015	'
Document Fiscal Period Focus	'Q1	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Jun. 30, 2014
In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
Current assets:	'	'
Cash and cash equivalents	$27,255	$35,270
Accounts receivable - joint interest	65	65
Prepaid expenses	633	832
Other current assets	10	14
Total current assets	27,963	36,181
Property and equipment, net of accumulated depreciation of $1,866 and $1,785	316	398
Unproved oil and gas properties excluded from amortization (Full-Cost Method)	14,287	14,259
Total property and equipment and unproved oil and gas properties, net	14,603	14,657
Total assets	42,566	50,838
LIABILITIES AND SHAREHOLDERS' EQUITY	'	'
Accounts payable and accrued expenses	1,178	5,662
Total current liabilities	1,178	5,662
Commitments and contingencies (Note 7)	'	'
Shareholders' equity:	'	'
Preferred stock, $0.001 par value; 20,000,000 authorized, 0 shares issued and outstanding	'	'
Common stock, $0.001 par value, 43,750,000 shares authorized; 21,046,591 shares issued and outstanding	169	169
Additional paid-in capital	317,019	316,760
Accumulated deficit	-275,800	-271,753
Total shareholders' equity	41,388	45,176
Total liabilities and shareholders' equity	$42,566	$50,838

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Jun. 30, 2014
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS	'	'
Property and equipment, accumulated depreciation (in dollars)	$1,866	$1,785
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	43,750,000	43,750,000
Common stock, shares issued	21,046,591	21,046,591
Common stock, shares outstanding	21,046,591	21,046,591

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Costs and expenses:	'	'
Depreciation	$86	$110
General, administrative and other operating	3,962	4,368
Loss from operations	-4,048	-4,478
Interest Income	1	24
Loss before income tax	-4,047	-4,454
Net loss	($4,047)	($4,454)
Basic and diluted loss per common share (in dollars per share)	($0.19)	($0.21)
Weighted average shares outstanding - basic and diluted (in shares)	21,046,591	21,046,591

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)	'	'
Net loss	($4,047)	($4,454)
Other comprehensive income (loss):	'	'
Unrealized gain on available-for-sale securities	'	17
Other comprehensive income	'	17
Comprehensive loss	($4,047)	($4,437)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
In Thousands, except Share data, unless otherwise specified	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Jun. 30, 2013	$169	$316,235	($254,636)	($94)	$61,674
Balance (in shares) at Jun. 30, 2013	21,046,591	'	'	'	'
Increase (Decrease) in Shareholders' Equity	'	'	'	'	'
Net loss	'	'	-17,117	'	-17,117
Unrealized gain on available-for-sale securities	'	'	'	25	25
Reclassification adjustment for realized losses included in net income	'	'	'	69	69
Amortization of fair value of stock options	'	525	'	'	525
Balance at Jun. 30, 2014	169	316,760	-271,753	'	45,176
Balance (in shares) at Jun. 30, 2014	21,046,591	'	'	'	'
Increase (Decrease) in Shareholders' Equity	'	'	'	'	'
Net loss	'	'	-4,047	'	-4,047
Amortization of fair value of stock options	'	259	'	'	259
Balance at Sep. 30, 2014	$169	$317,019	($275,800)	'	$41,388
Balance (in shares) at Sep. 30, 2014	21,046,591	'	'	'	'

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($4,047)	($4,454)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation	86	110
Stock based compensation	259	284
Amortization of premium on short term investments	'	212
Changes in operating assets and liabilities:	'	'
Decrease in accounts receivable - joint interest	'	165
Decrease in Prepaid expenses	199	178
Decrease in Other current assets	4	37
Increase (decrease) in Accounts payable and accrued expenses	-4,472	1,609
Decrease in Other liabilities	'	-12
Net cash used in operating activities	-7,971	-1,871
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Purchase of property and equipment	-4	-108
Investment in unproved oil and gas properties	-40	-1,351
Net cash Used in investing activities	-44	-1,459
DECREASE IN CASH AND CASH EQUIVALENTS	-8,015	-3,330
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	35,270	26,468
CASH AND CASH EQUIVALENTS AT END OF PERIOD	27,255	23,138
NON-CASH INVESTING AND FINANCING TRANSACTIONS:	'	'
Decrease (Increase) in Accounts payable (receivable) for oil and gas properties and gas properties	$12	($289)

ORGANIZATION_AND_SIGNIFICANT_A

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2014
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	'
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	'
	1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

	Nature of business

	Hyperdynamics Corporation (“Hyperdynamics,” the “Company,” “we,” “us,” and “our”) is a Delaware corporation formed in March 1996. Hyperdynamics has two wholly-owned subsidiaries, SCS Corporation Ltd (SCS), a Cayman corporation, and HYD Resources Corporation (HYD), a Texas corporation. Through SCS and its wholly-owned subsidiary, SCS Guinea SARL (SCSG), which is a Guinea limited liability company formed under the laws of the Republic of Guinea (“Guinea”) located in Conakry, Guinea, Hyperdynamics focuses on oil and gas exploration offshore the coast of West Africa. Our exploration efforts are pursuant to a Hydrocarbon Production Sharing Contract, as amended (the “PSC”). We refer to the rights granted under the PSC as the “Concession.” We began operations in oil and gas exploration, seismic data acquisition, processing, and interpretation in late fiscal 2002.

	As used herein, references to “Hyperdynamics,” “Company,” “we,” “us,” and “our” refer to Hyperdynamics Corporation and our subsidiaries, including SCS Corporation Ltd (“SCS”). The rights in the Concession offshore Guinea are held by SCS.

	Status of our Business

	We have no source of operating revenue and there is no assurance when we will, if ever. On September 30, 2014, we had $27.3 million in cash, and $1.2 million in liabilities, all of which are current liabilities. We plan to use our existing cash to fund our general corporate needs, our legal and other professional fees and our expenditures associated with the Concession, including our share of future capital expenditures that are not paid by Tullow on our behalf. We have no other material commitments; however, it is likely that we will continue to incur significant legal expenses.

	On December 31, 2012, we closed a sale to Tullow Guinea Ltd (“Tullow”), a subsidiary of Tullow Oil plc, of a 40% gross interest in the Concession. We now hold a 37% participating interest, with Dana Petroleum, PLC (“Dana”), which is a subsidiary of the Korean National Oil Corporation, holding the remaining 23% interest in the Concession. We refer to Tullow, Dana and us in the Concession as the “Consortium”.

	We have drilled one exploratory well, the Sabu-1 well, which reached the planned total depth of 3,600 meters below the surface in February 2012. We determined the well to be non-commercial. As a result, we evaluated the costs associated with the well, subjected them to the Full-Cost Ceiling Test, resulting in a Full-Cost Ceiling Test write-down.

	Since September 2013, we have received subpoenas from the United States Department of Justice (“DOJ”) and the United States Securities and Exchange Commission (“SEC”) requesting that we produce documents relating to our Concession in Guinea. See additional discussion in Note 7. We are unable to predict the outcome or future cost associated with legal proceedings and the investigations being conducted by the DOJ and SEC; however, we incurred approximately $7.5 million in legal and other professional fees related to the investigations in the year ended June 30, 2014, another $1.1 million in the three month period ended September 30, 2014. It is likely that we will continue to incur significant legal expenses.

	Pursuant to the Share Purchase Agreement (“SPA”) between Tullow and us, Tullow agreed to pay all of our participating interest share of expenditures associated with joint operations in the Concession up to a gross expenditure cap of $100 million incurred during the carry period that began on September 21, 2013. The timing of the planned well is uncertain. We will be responsible for our 37% interest share of the cost in excess of the remaining gross carry amount. Additionally, Tullow agreed to pay our participating interest share of future costs for the drilling of an appraisal of the initial exploration well, if drilled, up to a gross expenditure cap of $100 million.

	The Consortium planned to drill the exploration well in the ultra-deepwater portion of the Concession in the first half of calendar 2014. On March 11, 2014 Tullow unilaterally asserted its claim that there had been a Force Majeure event under the PSC with the Government of Guinea, the Joint Operating Agreement (“JOA”) between Dana, Tullow and us and the SPA. Tullow stated in its notice that the decisions by the DOJ and the SEC to open investigations into our activities in obtaining and retaining the Concession rights constituted a Force Majeure event under the terms of the PSC, JOA and SPA. Tullow unilaterally lifted its declaration of Force Majeure effective May 3, 2014. Diligent efforts are being made to satisfy the conditions to resuming petroleum operations which include clarification from the government of Guinea that the investigations of Hyperdynamics will not adversely affect operations under the PSC. The Consortium continues to evaluate the Ebola virus outbreak in Guinea and surrounding counties. We cannot predict the timing or outcome of these events.

	Our costs related to the items referred to above and any additional expenses, or any negative outcomes, could adversely affect our liquidity and financial condition and results of operations. We also will be responsible for our participating interest share of costs in excess of $100 million gross costs associated with joint operations expenditures, including operator overhead and the ultra-deepwater exploration well when drilled, and such excess expenditures could exacerbate our liquidity. Absent cash inflows, we could exhaust our current available liquidity within the next twelve months. The timing and amount of our cash outflows are dependent on a number of factors including: legal and other professional fees related to the FCPA investigations, a negative outcome related to any of our legal proceedings and investigations, well costs exceeding our carry, or if we have unfavorable well results. As a result, absent cash inflows, there is substantial doubt as to whether we will have adequate capital resources to meet our current obligations as they become due and therefore be able to continue as a going concern. Our ability to meet our current obligations as they become due over the next twelve-months, and to be able to continue exploration, will depend on obtaining additional resources through sales of additional interests in the Concession, equity or debt financings, or through other means, although no assurance can be given that any of these actions can be completed.

	Principles of consolidation

	The accompanying unaudited consolidated financial statements include the accounts of Hyperdynamics and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements and notes thereto contained in our Annual Report filed with the SEC on Form 10-K for the year ended June 30, 2014. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended June 30, 2014, as reported in the Form 10-K, have been omitted.

	Use of estimates

	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses at the balance sheet date and for the period then ended. Actual results could differ from these estimates.

	Cash and cash equivalents

	Cash equivalents are highly liquid investments with an original maturity of three months or less. For the periods presented, we maintained all of our cash in bank deposit accounts which, at times, exceed the federally insured limits.

	Joint interest receivable and allowance for doubtful accounts

	We establish provisions for losses on accounts receivable if we determine that we will not collect all or part of the outstanding balance. Accounts receivable are written down to reflect our best estimate of realizability based upon known specific analysis, historical experience, and other currently available evidence of the net collectible amount. There is no allowance for doubtful accounts as of September 30, 2014 or June 30, 2014. At September 30, 2014 and at June 30, 2014 we had a balance of $65,000, all of which related to joint interest billings to Tullow and Dana Petroleum (E&P) Limited (“Dana”), who own 40% and 23% participating interests in the Concession, respectively.

	Earnings per share

	Basic loss per common share has been computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period. In period of earnings, diluted earnings per common share are calculated by dividing net income available to common shareholders by weighted-average common shares outstanding during the period plus weighted-average dilutive potential common shares. Diluted earnings per share calculations assume, as of the beginning of the period, exercise of stock options and warrants using the treasury stock method.

	All potential dilutive securities, including potentially dilutive options, warrants and convertible securities, if any, were excluded from the computation of dilutive net loss per common share for the three month periods ended September 30, 2014 and 2013, respectively, as their effects are antidilutive due to our net loss for those periods.

	Stock options to purchase approximately 1.0 million common shares at an average exercise price of $10.11 and warrants to purchase approximately 32,000 shares of common stock at an average exercise price of $11.69 were outstanding at September 30, 2014. Using the treasury stock method, had we had net income, approximately 1,500 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the quarter ended September 30, 2014. There would have been no dilution attributable to our outstanding warrants to purchase common shares. Had we had net income, approximately 16,500 common shares attributable to our outstanding unvested restricted stock awards would have been included in the fully diluted earnings per share for the quarter ended September 30, 2014.

	Stock options to purchase approximately 1.3 million common shares at an average exercise price of $12.90 and warrants to purchase approximately 0.4 million shares of common stock at an average exercise price of $10.40 were outstanding at September 30, 2013. Using the treasury stock method, had we had net income, approximately 0.1 million common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the quarter ended September 30, 2013. There would have been no dilution attributable to our outstanding warrants to purchase common shares.

	Contingencies

	We are subject to legal proceedings, claims and liabilities. We accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred. See Note 7 for more information on legal proceedings.

	Financial instruments

	The accounting standards (ASC 820, “Fair Value Measurements and Disclosures”) regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement, and enhance disclosure requirements for fair value measures.

	The three levels are defined as follows:

		·		Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

		·		Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

	·		Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying values of cash and cash equivalents, accounts receivable — joint interest and accounts payable approximate fair value. Available-for-sale securities, which consisted entirely of Corporate Debt securities, were valued at the closing price reported in the active market in which the security was traded. As of September 30, 2014, there were no remaining investments on hand.

Foreign currency gains and losses from current operations

In accordance with ASC Topic 830, Foreign Currency Matters, the functional currency of our international subsidiaries is the U.S. Dollar. Gains and losses from foreign currency transactions arising from operating assets and liabilities are included in general, administrative and other operating expense, have not been significant. Net foreign currency transaction gains (losses) were $ (14) thousand for the three month period ended September 30, 2014, as compared to $(0.4) million for the three month period ended September 30, 2013.

Recently issued or adopted accounting pronouncements

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward exists, which requires that an entity present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 eliminates diversity in practice for presentation of an unrecognized tax benefits when such a carryforward is available to reduce the taxable income or tax payable that would result from the disallowance of a tax position. We adopted this accounting guidance in this, our first quarter of fiscal 2015 with no impact on our financial position or results of operations.

INVESTMENT_IN_OIL_AND_GAS_PROP

INVESTMENT IN OIL AND GAS PROPERTIES	3 Months Ended
	Sep. 30, 2014
INVESTMENT IN OIL AND GAS PROPERTIES	'
INVESTMENT IN OIL AND GAS PROPERTIES	'
	2. INVESTMENT IN OIL AND GAS PROPERTIES

	Investment in oil and gas properties consists entirely of our Guinea Concession in offshore West Africa. We owned a 77% participating interest in our Guinea Concession prior to the sale of a 40% gross interest to Tullow which closed on December 31, 2012. We now own a 37% interest in the Concession.

	We follow the “Full-Cost” method of accounting for oil and natural gas property and equipment costs. Under this method, internal costs incurred that were directly identified with exploration, development, and acquisition activities undertaken by us for our own account, and which were not related to production, general corporate overhead, or similar activities, are capitalized. Capitalization of internal costs was discontinued April 1, 2013 when Tullow became the operator. Geological and geophysical costs incurred that are directly associated with specific unproved properties are capitalized in “Unproved properties excluded from amortization” and evaluated as part of the total capitalized costs associated with a prospect. The cost of unproved properties not being amortized is assessed to determine whether such properties have been impaired. In determining whether such costs should be impaired, we evaluate current drilling results and available geological and geophysical information.

	We exclude capitalized costs of unproved oil and gas properties from amortization until evaluated. Geological and geophysical information pertaining to the Guinea concession was collected and evaluated and no reserves have been attributed to the concession.

	The following table provides detail of total capitalized costs for our Guinea concession which remain unproved and unevaluated and are excluded from amortization as of September 30, 2014 and June 30, 2014 (in thousands):

		September 30,		June 30,
		2014		2014
	Oil and Gas Properties:
	Unproved properties not subject to amortization	$	14,287	$	14,259

	During the three month period ended September 30, 2014, our oil and gas property balance increased by $28 thousand as a result of additional geological and geophysical costs incurred. Evaluation activities of these unproved properties are expected to be completed within the next one to two years.

	In prior periods we had presented oil and gas properties on the Consolidated Balance Sheets and within this footnote on a gross basis with the impaired properties presented as proved oil and gas properties, then fully amortized after applying the Full-Cost ceiling test, resulting in the net amount of unproved oil and gas properties. We revised our disclosures to eliminate any amounts identified as proved oil and gas properties, and have presented the Full-Cost ceiling test write-down directly against the unproved property account. All prior periods presented were conformed to follow the current period presentation.

	Sale of Interest to Tullow

	On December 31, 2012, we closed a sale to Tullow of a 40% gross interest in the Concession. As consideration, we received $27 million from Tullow as reimbursement of our past costs in the Concession and, as additional consideration, Tullow agreed to: (i) pay our participating interest share of future costs associated with the drilling of an exploration well in at least 2,000 meters of water in the deepwater fan area of the Concession, up to a gross expenditure cap of $100 million; and (ii) pay our share of costs for an appraisal well of the initial exploration well, if drilled, subject to a gross expenditure cap on the appraisal well of $100 million. Tullow is obligated to pay its 40% participating interest share of costs associated with the Concession as of November 20, 2012, the date of execution of the purchase and sale agreement. Tullow began to pay our costs attributable to the Concession on September 21, 2013. Tullow will continue to pay our costs, subject to the gross expenditure cap of $100 million, until 90 days following the date on which the rig contracted to drill the exploration well moves off the well location. We are responsible for our share of any costs exceeding the gross expenditure cap of $100 million on either well. Tullow agreed to use reasonable endeavors to provide for the commencement of drilling of the exploration well not later than April 1, 2014. The $27 million payment was received by us on December 31, 2012 and was recorded as a reduction in unproved oil and gas properties, net of transaction costs of approximately $3.3 million.

	In connection with the transaction, SCS, Tullow and Dana entered into a Joint Operating Agreement Novation and Amendment Agreement reflecting that as a result of the sale to Tullow, the interest of the parties in the Concession are SCS 37%, Dana 23%, and Tullow 40%, and that Tullow will be bound by the PSC and the Joint Operating Agreement previously entered into between SCS and Dana. Tullow will assume all the respective liabilities and obligations of SCS in respect of the assigned 40% interest. SCS and Tullow executed a Deed of Assignment. The Assignment was approved by Guinea’s Ministry of Mines and Geology by issuing an Arrêté on December 27, 2012 which formally authorized our assignment of a participating interest to Tullow. SCS, Dana and Tullow have elected Tullow as the Operator of the Concession beginning April 1, 2013.

ACCOUNTS_PAYABLE_AND_ACCRUED_E

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	3 Months Ended
	Sep. 30, 2014
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	'
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	'
	3. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

	Accounts payable and accrued expenses (in thousands) as of September 30, 2014 and June 30, 2014 include the following:

		September 30,		June 30,
		2014		2014
	Accounts payable — trade and oil and gas exploration activities	$	270	$	998
	Accounts payable — joint interest partner share of legal settlement	—		1,890
	Accounts payable — legal costs	496		2,492
	Accrued payroll and bonus	412		282
		$	1,178	$	5,662

INVESTMENTS

INVESTMENTS	3 Months Ended
INVESTMENTS	Sep. 30, 2014
INVESTMENTS	'
INVESTMENTS	'
	4. INVESTMENTS

	During the third and fourth quarters of fiscal 2013, we purchased a total of $15.5 million in debt securities which were classified as available-for-sale. These securities matured during the third quarter of fiscal 2014. No investments were held and we had no securities classified as held-to-maturity as of September 30, 2014 or June 30, 2014.

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
SHARE-BASED COMPENSATION	Sep. 30, 2014
SHARE-BASED COMPENSATION	'
SHARE-BASED COMPENSATION	'
	5. SHARE-BASED COMPENSATION

	On February 18, 2010, at our annual meeting of stockholders, stockholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). Prior to the 2010 stockholder meeting, we had two stock award plans: the Stock and Stock Option Plan, which was adopted in 1997 (“1997 Plan”) and the 2008 Restricted Stock Award Plan (“2008 Plan”). In conjunction with the approval of the 2010 Plan at the annual meeting, the 1997 Plan and the 2008 Plan were terminated as of February 18, 2010. Subsequently, on February 17, 2012, the 2010 Plan was amended to increase the maximum shares issuable under the 2010 Plan.

	The 2010 Plan provides for the grants of shares of common stock, restricted stock units or incentive stock options and/or nonqualified stock options to purchase our common stock to selected employees, directors, officers, agents, consultants, attorneys, vendors and advisors of ours’ or of any parent or subsidiary thereof. Shares of common stock or restricted stock can only be granted under the 2010 Plan within 10 years from the plan effective date of February 18, 2010. A maximum of 1,250,000 shares are issuable under the 2010 Plan and at September 30, 2014, 310,357 shares remained available for issuance.

	The 2010 Plan provides a means to attract and retain the services of participants and also to provide added incentive to such persons by encouraging stock ownership in the Company. Plan grants are administered by the Compensation Committee, which has substantial discretion to determine which persons, amounts, time, price, exercise terms, and restrictions, if any.

	Additionally, from time to time, we issue non-compensatory warrants, such as warrants issued to investors.

	Stock Options

	The fair value of stock option awards is estimated using the Black-Scholes valuation model. For market based stock option awards, those options where vesting terms are dependent on achieving a specified stock price, the fair value was estimated using a Black-Scholes option pricing model with inputs adjusted for the probability of the vesting criteria being met and the median expected term for each grant as determined by utilizing a Monte Carlo simulation. Expected volatility is based solely on historical volatility of our common stock over the period commensurate with the expected term of the stock options. We rely solely on historical volatility as we do not have traded options. The expected term calculation for stock options is based on the simplified method as described in the Securities and Exchange Commission Staff Accounting Bulletin number 107. We use this method because we do not have sufficient historical information on exercise patterns to develop a model for expected term. The risk-free interest rate is based on the U. S. Treasury yield in effect at the time of grant for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield rate of zero is based on the fact that we have never paid cash dividends on our common stock and we do not expect to pay cash dividends on our common stock during the expected term of the options.

	The following table provides information about options during the three months ended September 30, 2014 and 2013:

			2014			2013
	Number of options granted		6,844			3,359
	Compensation expense recognized		$	135,000		$	284,000
	Compensation cost capitalized		—			—
	Weighted average fair value of options outstanding		$	7.16		$	8.53

	The following table details the significant assumptions used to compute the fair market values of employee and director stock options granted during the three month periods ended September 30, 2014 and 2013:

			2014		2013
	Risk-free interest rate		0.05	%	0.08-0.90	%
	Dividend yield		0	%	0	%
	Volatility factor		216	%	74-95	%
	Expected life (years)		0.5		0.50-3.25

	Summary information regarding employee and director stock options issued and outstanding under all plans as of September 30, 2014 is as follows:

			Options		Weighted			Aggregate		Weighted
					Average			intrinsic value		average
					Exercise Price					remaining
										contractual
										term (years)
	Options outstanding at July 1, 2014		1,441,727		$	8.76		$	8,327	3.14
	Granted		6,844		3.25
	Exercised		—		—
	Forfeited		(378,788	)	4.84
	Expired		(82,677	)	10.17
	Options outstanding at September 30, 2014		987,106		$	10.11		$	—	3.92
	Options exercisable at September 30, 2014		528,440		$	15.68		$	—	3.52

	Options outstanding and exercisable as of September 30, 2014

	Exercise Price			Outstanding Number of		Remaining Life		Exercisable
	Exercise Price			Shares		Remaining Life		Number of Shares
	$	1.92-4.00		13,453		1 year		13,453
	$	1.92-4.00		460,656		4 years		51,883
	$	4.01-10.00		53,631		1 year		53,631
	$	4.01-10.00		156,241		3 years		113,035
	4.01-10.00			5,562		4 years		750
	4.01-10.00			7,500		5 years		7,500
	$	4.01-10.00		39,875		6 years		39,875
	$	10.01-20.00		50,125		1 year		50,125
	$	10.01-20.00		3,750		2 years		2,500
	10.01-20.00			28,750		6 years		28,750
	$	20.01-30.00		1,875		2 years		1,250
	$	20.01-30.00		47,875		6 years		47,875
	$	30.01-40.00		9,375		1 year		9,375
	$	30.01-40.00		31,250		2 years		31,250
$	30.01-40.00		65,938		7 years		65,938
$	40.01-50.00		11,250		7 years		11,250
			987,106				528,440

At September 30, 2014, there was $0.9 million of unrecognized compensation costs related to non-vested share based compensation arrangements granted to employees and directors under the plans, with an amortization period of two to three years.

Restricted Stock

The fair value of restricted stock awards classified as equity awards is based on the Company’s stock price as of the date of grant. During the year ended June 30, 2014, we granted restricted stock awards with a fair value of $0.1 million or 21,030 shares. These awards do not grant any rights as a shareholder of the company until a certificate for the vested shares of common stock has been issued. There were no restricted stock awards issued in the three months ended September 30, 2014. Summary information regarding employee and director restricted stock issued and outstanding under the 2010 Plan as of September 30, 2014 is as follows:

		Shares		Weighted
				Average Grant
				Price
Balance at July 1, 2014		21,030		$	4.12
Granted		—		—
Vested		—		—
Forfeited		(4,412	)	4.12
Expired		—		—
Balance at September 30, 2014		16,618		$	4.12
Vested at September 30, 2014		—		$	—

INCOME_TAXES

INCOME TAXES	3 Months Ended
INCOME TAXES	Sep. 30, 2014
INCOME TAXES	'
INCOME TAXES	'
	6. INCOME TAXES

	Federal income taxes are not due as we have had losses since inception. Our effective tax rate for the three month periods ended September 30, 2014 and 2013 is zero percent. This rate is lower than the U.S. statutory rate of 35 percent primarily due to the valuation allowance applied against our net deferred tax assets.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES	'
COMMITMENTS AND CONTINGENCIES	'
	7. COMMITMENTS AND CONTINGENCIES

	LITIGATION AND OTHER LEGAL MATTERS

	From time to time, we and our subsidiaries are involved in disputes. We are unable to predict the outcome of such matters when they arise. We review the status of on-going proceedings and other contingent matters with legal counsel. Liabilities for such items are recorded if and when it is probable that a liability has been incurred and when the amount of the liability can be reasonably estimated. If we are able to reasonably estimate a range of possible losses, an estimated range of possible loss is disclosed for such matters in excess of the accrued liability, if any. Liabilities are periodically reviewed for adjustments based on additional information.

	Shareholder Lawsuits

	On April 2, 2012, a lawsuit styled as a class action was filed in the U.S. District Court for the Southern District of Texas against us and our chief executive officer alleging that we made false and misleading statements that artificially inflated our stock prices. The lawsuit alleges, among other things, that we misrepresented the prospects and progress of our drilling operations, including our drilling of the Sabu-1 well and plans to drill the Baraka-1 well off the coast of the Republic of Guinea. The lawsuit seeks damages based on Sections 10(b) and 20 of the Securities Exchange Act of 1934, although the specific amount of damages is not specified. Although several lead plaintiffs were appointed by the Court and then withdrew from the matter, a lead plaintiff has now been appointed and a scheduling order governing briefing on a motion to dismiss has been entered by the Court. On May 12, 2014, lead plaintiff filed his amended complaint, and defendants filed their motion to dismiss on July 11, 2014. On August 20, 2014, the lead plaintiff filed a response to our motion to dismiss, and we filed our reply on September 19, 2014. We have assessed the status of this matter and have concluded that an adverse judgment remains reasonably possible, but not probable. As a result, no provision has been made in the consolidated financial statements. Given the early stage of this dispute, we are unable to estimate a range of possible loss; however, in our opinion, the outcome of this dispute will not have a material effect on our financial condition and results of operations.

	Beginning on March 13, 2014, several lawsuits styled as class actions were filed in the U.S. District Court for the Southern District of Texas against us and several officers of the Company alleging that we made false and misleading statements that artificially inflated our stock prices. The lawsuits allege, among other things, that we misrepresented our compliance with the Foreign Corrupt Practices Act and anti-money laundering statutes and that we lacked adequate internal controls. The lawsuits seek damages based on Sections 10(b) and 20 of the Securities Exchange Act of 1934, although the specific amount of damages is not specified. On May 12, 2014, a shareholder filed a motion for appointment as lead plaintiff, which remains pending. Also, on May 12, 2014, lead plaintiff in the April 2012 lawsuit described above filed a motion to consolidate the March 2014 cases with the earlier case. The parties await a ruling on the motion to consolidate. In addition to these lawsuits, we have received demands from stockholders to inspect our books and records; however, no proceedings have been instituted. We have assessed the status of this matter and have concluded that an adverse judgment remains reasonably possible, but not probable. As a result, no provision has been made in the consolidated financial statements. Given the early stage of these disputes, we are unable to estimate a range of possible loss; however, in our opinion, the outcome of this dispute will not have a material effect on our financial condition and results of operations.

	On May 6, 2014, a purported shareholder derivative petition was filed against all of our directors and our current and former chief financial officer in the District Court of Harris County, Texas. The petition alleges breaches of their fiduciary duties, gross mismanagement, abuse of control, waste and unjust enrichment in connection with potential violations by us of the FCPA. The plaintiff seeks unspecified damages against these persons and does not request any damages from us. The plaintiff did not make a demand on our Board of Directors prior to filing the suit. The plaintiff filed an amended petition on September 16, 2014, and our response was filed on October 31, 2014.

	Iroquois Lawsuit

	On May 9, 2012, a lawsuit was filed in the Supreme Court of the State of New York against us and all of our directors. The plaintiffs, five hedge funds that invested in us in early 2012, allege that we breached an agreement with the plaintiffs, and that we and the directors made certain negligent misrepresentations relating to our drilling operations. Among other claims, the plaintiffs allege that we misrepresented the status of our drilling operations and the speed with which the drilling would be completed. The plaintiffs advance claims for breach of contract and negligent misrepresentation and seek damages in the amount of $18.5 million plus pre-judgment interest. On July 12, 2012, we and the directors moved to dismiss the suit for failure to state a claim as to all defendants and for lack of personal jurisdiction over the director defendants. On June 19, 2013, the court dismissed the negligent misrepresentation claim but declined to dismiss the breach of contract claim. The negligent misrepresentation claim was dismissed without prejudice, meaning plaintiffs could attempt to refile it. On August 12, 2013, the plaintiffs filed an amended complaint. That complaint names only us and seeks recovery for alleged breaches of contract. We filed an answer to the plaintiffs’ amended complaint on September 9, 2013, and the court has entered a scheduling order governing pre-trial proceedings in the matter. The maximum possible loss is the full amount of $18.5 million plus interest accrued thereon until judgment. We, however, have assessed the status of this matter and have concluded that although an adverse judgment is reasonably possible, it is not probable. As a result, no provision has been made in the consolidated financial statements. In our opinion, the outcome of this dispute will not have a material effect on our financial condition and results of operations.

	Foreign Corrupt Practices Act Investigations

	In September 2013, we received a subpoena from the United States Department of Justice and in January 2014 we received a subpoena from the United States Securities and Exchange Commission for the production of documents relating to our business in Guinea. We understand that they are investigating whether our activities in obtaining and retaining the Concession rights and our relationships with charitable organizations potentially violate the U.S. Foreign Corrupt Practices Act or U.S. anti-money laundering statutes. We have retained legal counsel to represent us in these matters, and we are cooperating fully with the government.

	If violations of the FCPA occurred, we could be subject to fines, civil and criminal penalties, equitable remedies, and injunctive relief. We could also face fines, sanctions and other penalties from authorities in other jurisdictions that could affect our ability to conduct business operations in those jurisdictions. In addition, disclosure and the pendency of the investigation could adversely affect our reputation and our ability to obtain new business or retain existing business or implement our business plan, to attract and retain employees and to access the capital markets. No amounts have been accrued related to any potential fines, sanctions or other penalties. We cannot currently predict what, if any, actions may be taken by the DOJ, the SEC, the applicable government or other authorities or the effect the actions may have on our results of operations, financial condition, on our financial statements or on our business in Guinea and other jurisdictions. We are unable to predict when the investigations will be completed, what outcome will result or what total costs we will incur in the course of the investigations. We incurred approximately $7.5 million in legal and other professional fees associated with the FCPA investigations in the year ended June 30, 2014, an additional $1.1 million in the three month period ended September 30, 2014, and it is likely that we will continue to incur additional significant legal expenses.

	COMMITMENTS AND CONTINGENCIES

	Operating Leases

	We lease office space under long-term operating leases with varying terms. Most of the operating leases contain renewal and purchase options. We expect that in the normal course of business, the majority of operating leases will be renewed or replaced by other leases.

	The following is a schedule by years of minimum future rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of September 30, 2014 (in thousands):

	Years ending June 30:
	2015	$	229
	2016	386
	2017	392
	2018	399
	2019 and thereafter	406
	Total minimum payments required	$	1,812

	Rent expense included in net loss from operations for the three month periods ended September 30, 2014 and 2013 was $0.1 million in each period.

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	3 Months Ended
SUBSEQUENT EVENT	Sep. 30, 2014
SUBSEQUENT EVENT	'
SUBSEQUENT EVENT	'
	8. SUBSEQUENT EVENT

	In an effort to continue to reduce our cost structure, our Board of Directors decided to make additional reductions in our workforce. This reduction will begin in mid-November 2014 and continue through December 31, 2014 and is expected to reduce our current staff from 17 employees to 11 employees. The employees will be paid a severance according with the Company’s stated policy that should cost approximately $0.7 million. This reduction is expected to reduce fiscal year 2015 costs by approximately $0.8 million.

ORGANIZATION_AND_SIGNIFICANT_A1

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2014
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	'
Principles of consolidation	'
	Principles of consolidation

	The accompanying unaudited consolidated financial statements include the accounts of Hyperdynamics and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements and notes thereto contained in our Annual Report filed with the SEC on Form 10-K for the year ended June 30, 2014. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended June 30, 2014, as reported in the Form 10-K, have been omitted.


Use of estimates	'
	Use of estimates

	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses at the balance sheet date and for the period then ended. Actual results could differ from these estimates.


Cash and cash equivalents	'
	Cash and cash equivalents

	Cash equivalents are highly liquid investments with an original maturity of three months or less. For the periods presented, we maintained all of our cash in bank deposit accounts which, at times, exceed the federally insured limits.


Joint interest receivable and allowance for doubtful accounts	'
	Joint interest receivable and allowance for doubtful accounts

	We establish provisions for losses on accounts receivable if we determine that we will not collect all or part of the outstanding balance. Accounts receivable are written down to reflect our best estimate of realizability based upon known specific analysis, historical experience, and other currently available evidence of the net collectible amount. There is no allowance for doubtful accounts as of September 30, 2014 or June 30, 2014. At September 30, 2014 and at June 30, 2014 we had a balance of $65,000, all of which related to joint interest billings to Tullow and Dana Petroleum (E&P) Limited (“Dana”), who own 40% and 23% participating interests in the Concession, respectively.


Earnings per share	'
	Earnings per share

	Basic loss per common share has been computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period. In period of earnings, diluted earnings per common share are calculated by dividing net income available to common shareholders by weighted-average common shares outstanding during the period plus weighted-average dilutive potential common shares. Diluted earnings per share calculations assume, as of the beginning of the period, exercise of stock options and warrants using the treasury stock method.

	All potential dilutive securities, including potentially dilutive options, warrants and convertible securities, if any, were excluded from the computation of dilutive net loss per common share for the three month periods ended September 30, 2014 and 2013, respectively, as their effects are antidilutive due to our net loss for those periods.

	Stock options to purchase approximately 1.0 million common shares at an average exercise price of $10.11 and warrants to purchase approximately 32,000 shares of common stock at an average exercise price of $11.69 were outstanding at September 30, 2014. Using the treasury stock method, had we had net income, approximately 1,500 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the quarter ended September 30, 2014. There would have been no dilution attributable to our outstanding warrants to purchase common shares. Had we had net income, approximately 16,500 common shares attributable to our outstanding unvested restricted stock awards would have been included in the fully diluted earnings per share for the quarter ended September 30, 2014.

	Stock options to purchase approximately 1.3 million common shares at an average exercise price of $12.90 and warrants to purchase approximately 0.4 million shares of common stock at an average exercise price of $10.40 were outstanding at September 30, 2013. Using the treasury stock method, had we had net income, approximately 0.1 million common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the quarter ended September 30, 2013. There would have been no dilution attributable to our outstanding warrants to purchase common shares.


Contingencies	'
	Contingencies

	We are subject to legal proceedings, claims and liabilities. We accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred. See Note 7 for more information on legal proceedings.


Financial instruments	'
	Financial instruments

	The accounting standards (ASC 820, “Fair Value Measurements and Disclosures”) regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement, and enhance disclosure requirements for fair value measures.

	The three levels are defined as follows:

		·	Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

		·	Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

		·	Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

	Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying values of cash and cash equivalents, accounts receivable — joint interest and accounts payable approximate fair value. Available-for-sale securities, which consisted entirely of Corporate Debt securities, were valued at the closing price reported in the active market in which the security was traded. As of September 30, 2014, there were no remaining investments on hand.

Foreign currency gains and losses from current operations	'
	Foreign currency gains and losses from current operations

	In accordance with ASC Topic 830, Foreign Currency Matters, the functional currency of our international subsidiaries is the U.S. Dollar. Gains and losses from foreign currency transactions arising from operating assets and liabilities are included in general, administrative and other operating expense, have not been significant. Net foreign currency transaction gains (losses) were $ (14) thousand for the three month period ended September 30, 2014, as compared to $(0.4) million for the three month period ended September 30, 2013.


Recently issued or adopted accounting pronouncements	'
	Recently issued or adopted accounting pronouncements

	In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward exists, which requires that an entity present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 eliminates diversity in practice for presentation of an unrecognized tax benefits when such a carryforward is available to reduce the taxable income or tax payable that would result from the disallowance of a tax position. We adopted this accounting guidance in this, our first quarter of fiscal 2015 with no impact on our financial position or results of operations.

INVESTMENT_IN_OIL_AND_GAS_PROP1

INVESTMENT IN OIL AND GAS PROPERTIES (Tables)	3 Months Ended
	Sep. 30, 2014
INVESTMENT IN OIL AND GAS PROPERTIES	'
Schedule of total capitalized costs of oil and gas properties	'
	The following table provides detail of total capitalized costs for our Guinea concession which remain unproved and unevaluated and are excluded from amortization as of September 30, 2014 and June 30, 2014 (in thousands):

		September 30,		June 30,
		2014		2014
	Oil and Gas Properties:
	Unproved properties not subject to amortization	$	14,287	$	14,259

ACCOUNTS_PAYABLE_AND_ACCRUED_E1

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	3 Months Ended
	Sep. 30, 2014
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	'
Summary of accounts payable and accrued expenses	'
	Accounts payable and accrued expenses (in thousands) as of September 30, 2014 and June 30, 2014 include the following:

		September 30,		June 30,
		2014		2014
	Accounts payable — trade and oil and gas exploration activities	$	270	$	998
	Accounts payable — joint interest partner share of legal settlement	—		1,890
	Accounts payable — legal costs	496		2,492
	Accrued payroll and bonus	412		282
		$	1,178	$	5,662

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
SHARE-BASED COMPENSATION (Tables)	Sep. 30, 2014
SHARE-BASED COMPENSATION	'
Schedule of information about options	'

			2014			2013
	Number of options granted		6,844			3,359
	Compensation expense recognized		$	135,000		$	284,000
	Compensation cost capitalized		—			—
	Weighted average fair value of options outstanding		$	7.16		$	8.53


Schedule of significant assumptions used to compute the fair market values of employee and director stock options granted	'

			2014		2013
	Risk-free interest rate		0.05	%	0.08-0.90	%
	Dividend yield		0	%	0	%
	Volatility factor		216	%	74-95	%
	Expected life (years)		0.5		0.50-3.25


Summary of employee and director stock options issued and outstanding	'

			Options		Weighted			Aggregate		Weighted
					Average			intrinsic value		average
					Exercise Price					remaining
										contractual
										term (years)
	Options outstanding at July 1, 2014		1,441,727		$	8.76		$	8,327	3.14
	Granted		6,844		3.25
	Exercised		—		—
	Forfeited		(378,788	)	4.84
	Expired		(82,677	)	10.17
	Options outstanding at September 30, 2014		987,106		$	10.11		$	—	3.92
	Options exercisable at September 30, 2014		528,440		$	15.68		$	—	3.52


Schedule of stock options outstanding and exercisable	'

	Exercise Price			Outstanding Number of		Remaining Life		Exercisable
	Exercise Price			Shares		Remaining Life		Number of Shares
	$	1.92-4.00		13,453		1 year		13,453
	$	1.92-4.00		460,656		4 years		51,883
	$	4.01-10.00		53,631		1 year		53,631
	$	4.01-10.00		156,241		3 years		113,035
	4.01-10.00			5,562		4 years		750
	4.01-10.00			7,500		5 years		7,500
	$	4.01-10.00		39,875		6 years		39,875
	$	10.01-20.00		50,125		1 year		50,125
	$	10.01-20.00		3,750		2 years		2,500
	10.01-20.00			28,750		6 years		28,750
	$	20.01-30.00		1,875		2 years		1,250
	$	20.01-30.00		47,875		6 years		47,875
	$	30.01-40.00		9,375		1 year		9,375
	$	30.01-40.00		31,250		2 years		31,250
	$	30.01-40.00		65,938		7 years		65,938
	$	40.01-50.00		11,250		7 years		11,250
				987,106				528,440


Summary information regarding employee and director restricted stock issued and outstanding	'

			Shares		Weighted
					Average Grant
					Price
	Balance at July 1, 2014		21,030		$	4.12
	Granted		—		—
	Vested		—		—
	Forfeited		(4,412	)	4.12
	Expired		—		—
	Balance at September 30, 2014		16,618		$	4.12
	Vested at September 30, 2014		—		$	—

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES	'
Schedule by years of minimum future rental payments required under operating leases that have initial or remaining noncancellable lease terms in excess of one year	'
	The following is a schedule by years of minimum future rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of September 30, 2014 (in thousands):

	Years ending June 30:
	2015	$	229
	2016	386
	2017	392
	2018	399
	2019 and thereafter	406
	Total minimum payments required	$	1,812

ORGANIZATION_AND_SIGNIFICANT_A2

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)

3 Months Ended

12 Months Ended

3 Months Ended

0 Months Ended

1 Months Ended

Sep. 30, 2014

Jun. 30, 2014

Sep. 30, 2013

Jun. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Jun. 30, 2014

Sep. 30, 2014

Jun. 30, 2014

Sep. 30, 2014

Jun. 30, 2014

Sep. 21, 2013

Dec. 31, 2012

Dec. 30, 2012

Sep. 21, 2013

Dec. 31, 2012

Sep. 30, 2014

Dec. 31, 2012

Sep. 30, 2014

Feb. 29, 2012

item

Stock options

Unvested restricted stock awards

Foreign Corrupt Practices Act Investigations

Guinea concession

Sabu-1 well

Tullow Guinea Ltd

Dana

Tullow Guinea Ltd

item

Nature of business

Number of wholly-owned subsidiaries

Status of our Business

Other commitments

Cash

27,255,000

35,270,000

23,138,000

26,468,000

Liabilities

1,200,000

Current liabilities

1,178,000

5,662,000

Ownership interest sold (as a percent)

40.00%

Number of exploratory wells drilled

Planned total depth of drilled well reached

3,600

Legal and other professional fees

1,410,000

7,500,000

Threshold gross expenditure cap for well to be paid by the entity

100,000,000

Gross expenditure for an appraisal well to be paid by Tullow as additional consideration

100,000,000

Ownership interest (as a percent)

37.00%

77.00%

23.00%

40.00%

Gross expenditure for an ultra-deepwater exploration well to be paid by Tullow as additional consideration

100,000,000

Allowance for doubtful accounts

Accounts receivable - joint interest

$65,000

Maximum period of time over which current available liquidity could be exhausted

'12 months

Earnings per share

Common shares that can be purchased upon exercise of options

987,106

1,300,000

1,441,727

Average exercise price of common stock (in dollars per share)

$10.40

$10.11

$12.90

$8.76

Number of shares that can be purchased upon exercise of warrants

32,000,000

400,000

Average exercise price of warrants (in dollars per share)

11.69

Common shares that can be purchased using the treasury stock method, had there been net income

1,500

100,000

16,500

ORGANIZATION_AND_SIGNIFICANT_A3

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Foreign currency gains and losses from current operations	'	'
Net foreign currency transaction gains (losses)	($14,000)	($400,000)

INVESTMENT_IN_OIL_AND_GAS_PROP2

INVESTMENT IN OIL AND GAS PROPERTIES (Details) (USD $)

Sep. 30, 2014

Jun. 30, 2014

Nov. 20, 2012

Sep. 30, 2014

Jun. 30, 2014

Sep. 21, 2013

Dec. 31, 2012

Dec. 30, 2012

Sep. 21, 2013

Dec. 31, 2012

Sep. 30, 2014

Dec. 31, 2012

Sep. 30, 2014

Dec. 31, 2012

Sep. 30, 2014

Tullow Guinea Ltd

Guinea concession

bbl

Tullow Guinea Ltd

Dana

Tullow Guinea Ltd

Minimum

Maximum

Tullow Guinea Ltd

Investments in oil and gas properties

Ownership interest in Guinea Concession (as a percent)

37.00%

77.00%

23.00%

40.00%

Reserves

Oil and Gas Properties:

Unproved properties not subject to amortization

$14,287,000

$14,259,000

$14,287,000

$14,259,000

Period over which evaluation activities of unproved properties are expected to be completed

'1 year

'3 years

Increase in property balance resulting from capitalized cost adjustment

28,000

Ownership interest sold (as a percent)

40.00%

Consideration of sale of interest in PSC

27,000,000

Depth of exploration well to be drilled

2,000

Gross expenditure for an ultra-deepwater exploration well to be paid by Tullow as additional consideration

100,000,000

Gross expenditure for an appraisal well to be paid by Tullow as additional consideration

100,000,000

Percentage of participating interest share of costs associated with the concession obligated to be paid

40.00%

Period through which additional consideration is to be paid by Tullow

'90 days

Threshold gross expenditure cap for well to be paid by the entity

100,000,000

Transaction costs

$3,300,000

ACCOUNTS_PAYABLE_AND_ACCRUED_E2

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	'	'
Accounts payable - trade and oil and gas exploration activities	$270	$998
Accounts payable - joint interest partner share of legal settlement	'	1,890
Accounts payable - legal costs	496	2,492
Accrued payroll and bonus	412	282
Accounts payable and accrued expenses	$1,178	$5,662

INVESTMENTS_Details

INVESTMENTS (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Jun. 30, 2013
INVESTMENTS	'	'	'
Amount of debt securities on hand maturing	'	'	$15,500,000
Investments at the end of the period	0	0	'
Held-to-maturity securities, fair value	$0	$0	'

SHAREBASED_COMPENSATION_Detail

SHARE-BASED COMPENSATION (Details) (USD $)

Sep. 30, 2013

Feb. 18, 2010

Sep. 30, 2014

Sep. 30, 2013

Jun. 30, 2014

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Jun. 30, 2014

Feb. 18, 2010

Sep. 30, 2014

item

Stock options

Unvested restricted stock awards

2010 Plan

Minimum

Maximum

Exercise price range $1.92 - $4.00

Exercise price range $4.01 - $10.00

Exercise price range $10.01 - $20.00

Exercise price range $20.01 - $30.00

Exercise price range $30.01 - $40.00

Exercise price range $40.01 - $50.00

Stock options

Unvested restricted stock awards

Remaining Life, 1 year

Remaining life, 4 years

Remaining Life, 1 year

Remaining life, 4 years

Remaining life, 3 years

Remaining life, 5 years

Remaining life, 6 years

Remaining Life, 1 year

Remaining life, 6 years

Remaining life, 2 years

Remaining life, 6 years

Remaining life, 2 years

Remaining Life, 1 year

Remaining life, 2 years

Remaining life, 7 years

Stock options and warrants

Number of stock award plans prior to the adoption of 2010 plan

Period within which shares of common stock, options or restricted stock can be granted under the 2010 plan

'10 years

Number of shares issuable under the plan

1,250,000

Number of shares remaining available for issuance

310,357

Options granted to employees and directors

Number of options granted (in shares)

6,844

3,359

Compensation expense recognized

$135,000

$284,000

Weighted average fair value of options outstanding (in dollars per share)

$7.16

$8.35

Significant assumptions used to compute the fair market values

Risk-free interest rate (as a percent)

0.05%

Risk-free interest rate, low end of range (as a percent)

0.08%

Risk-free interest rate, high end of range (as a percent)

0.90%

Dividend yield (as a percent)

0.00%

Volatility factor (as a percent)

216.00%

Volatility factor, low end of range (as a percent)

74.00%

Volatility factor, high end of range (as a percent)

95.00%

Expected life

'6 months

'3 years 3 months

Options

Outstanding at the beginning of the period (in shares)

1,441,727

Granted (in shares)

6,844

3,359

Forfeited (in shares)

-378,788

Expired (in shares)

-82,677

Outstanding at the end of the period (in shares)

987,106

1,300,000

1,441,727

Options exercisable at end of period (in shares)

528,440

Weighted Average Exercise Price

Outstanding at the beginning of the period (in dollars per share)

$10.40

$8.76

Granted (in dollars per share)

$3.25

Forfeited (in dollars per share)

$4.84

Expired (in dollars per share)

$10.17

Outstanding at the end of the period (in dollars per share)

$10.40

$10.11

$12.90

$8.76

Options exercisable at end of period (in dollars per share)

$15.68

Aggregate intrinsic value

Outstanding at the end of the period

8,327

Weighted average remaining contractual term (years)

Outstanding at the end of the period

'3 years 11 months 1 day

'3 years 1 month 21 days

Options exercisable at period end

'3 years 6 months 7 days

Options outstanding and exercisable

Exercise Price, low end of the range (in dollars per share)

$1.92

$4.01

$10.01

$20.01

$30.01

$40.01

Exercise Price, high end of the range (in dollars per share)

$10

$20

$30

$40

$50

Outstanding number of shares

987,106

13,453

460,656

53,631

5,562

156,241

7,500

39,875

50,125

28,750

3,750

47,875

1,875

9,375

31,250

65,938

11,250

Remaining life

'1 year

'4 years

'1 year

'4 years

'3 years

'5 years

'6 years

'1 year

'6 years

'2 years

'6 years

'2 years

'1 year

'2 years

'7 years

Exercisable number of shares

528,440

13,453

51,883

53,631

750

113,035

7,500

39,875

50,125

28,750

2,500

47,875

1,250

9,375

31,250

65,938

11,250

Nonvested Share-based Compensation Arrangements, Additional Disclosure

Unrecognized compensation costs

900,000

Amortization period

'2 years

'3 years

Fair value of restricted shares granted

$100,000

Restricted Stock

Outstanding at the beginning of the period (in shares)

21,030

Granted (in shares)

21,030

Forfeited (in shares)

-4,412

Outstanding at the end of the period (in shares)

16,618

Weighted Average Grant Price

Outstanding at the beginning of the period (in dollars per share)

$4.12

Forfeited (in dollars per share)

$4.12

Outstanding at the end of the period (in dollars per share)

$4.12

INCOME_TAXES_Details

INCOME TAXES (Details)	3 Months Ended
INCOME TAXES (Details)	Sep. 30, 2014	Sep. 30, 2013
INCOME TAXES	'	'
Effective tax rate (as a percent)	0.00%	0.00%
Statutory federal rate (as a percent)	35.00%	'

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	3 Months Ended			0 Months Ended			3 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	9-May-12	Sep. 30, 2014	9-May-12	Sep. 30, 2014	Jun. 30, 2014
			Shareholder Lawsuits	Iroquois Lawsuit	Iroquois Lawsuit	Iroquois Lawsuit	Foreign Corrupt Practices Act Investigations	Foreign Corrupt Practices Act Investigations
				item
LITIGATION AND OTHER LEGAL MATTERS	'	'	'	'	'	'	'	'
Provision for possible loss	'	'	$0	'	$0	'	'	'
Number of plaintiffs which filed lawsuit	'	'	'	5	'	'	'	'
Damages sought	'	'	'	18,500,000	'	'	'	'
Maximum possible loss	'	'	'	'	'	18,500,000	'	'
Loss contingency amounts related to potential fines, sanctions or other penalties	'	'	'	'	'	'	0	'
Legal and other professional fees	'	'	'	'	'	'	1,410,000	7,500,000
Operating Leases	'	'	'	'	'	'	'	'
2015	229,000	'	'	'	'	'	'	'
2016	386,000	'	'	'	'	'	'	'
2017	392,000	'	'	'	'	'	'	'
2018	399,000	'	'	'	'	'	'	'
2019 and thereafter	406,000	'	'	'	'	'	'	'
Total minimum payments required	1,812,000	'	'	'	'	'	'	'
Rent expense	$100,000	$100,000	'	'	'	'	'	'

SUBSEQUENT_EVENT_Details

SUBSEQUENT EVENT (Details) (Forecast, USD $)	Nov. 15, 2014	Dec. 31, 2014	Jun. 30, 2015
In Millions, unless otherwise specified	employee	Subsequent event	Subsequent event
		Workforce reduction	Workforce reduction
		employee	Reduced employee expenses
SUBSEQUENT EVENT	'	'	'
Number of employees	17	11	'
Severance cost	'	$0.70	'
Expected cost reduction	'	'	$0.80