July 27, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Hyperdynamics Corp. (AMEX: HDY) said that it has reached lockup agreements with Kent Watts, its former Chairman and CEO, and Mike Watts, a former consultant to the company. According to the company, the Watts brothers agreed to lock up and donate the vast majority of the shares under their control to a charity that supports activities in Guinea, where Hyperdynamics has its operations.

A Hyperdynamics statement claimed the Watts brothers required no compensation for the lockup and, “…expressed a serious commitment to continue to bring confidence to the company's market.”

According to Ray Leonard, Hyperdynamics’ current CEO, "This lockup agreement is an indication of the support and confidence that our largest shareholders have placed in us to succeed in building a world-class oil and gas company."

The agreements cover a nine-month lockup period that precludes the trading of more than 17 million shares of common stock. The locked up shares are comprised of around 13.4 million free-trading shares along with warrants to purchase approximately 4 million shares. The lockup represents 13 percent of outstanding shares and 34 percent of outstanding warrants of Hyperdynamics stock.

Hyperdynamics said that the agreements also state that 15 percent of the locked up shares would be released when the stock price reaches $3 a share for five consecutive trading days; 50 percent would be released when the price reaches $5 a share for five days; and 100 percent would be released when the stock price reaches $9 a share for the same period.

The lockup agreements replace earlier agreements, which have expired.

The Watts brothers also reaffirmed in this agreement their commitment to donate a total of two million shares and one million warrants to the American Friends of Guinea, a charitable organization with which the company is working.

Texas-based 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.

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