Hyperdynamics Corporation has engaged Bofa Merrill Lynch as financial advisor to sell a portion of its 77% interest in an oil and gas exploration concession off the coast of Guinea.

The oil and natural gas explorer is seeking to farm-out a half of its interest in the 25,000km² area to an experienced oil and gas company, which would also serve as operator of the project going forward.

Hyperdynamics president and chief executive officer Ray Leonard said during this farm-out process, the company would evaluate potential partners on deep water operating experience.

"We believe that farming out an additional share of the project to an experienced deep water operator is the best way to maximise shareholder value going forward," he said.

"Such a transaction should make available additional capital that would be helpful to continue our exploration programme for the basin."

The farm-out process is expected to begin in the second quarter of 2012.

Hyperdynamics announced results of its first Guinea exploration well the Sabu-1 in February, which indicated the presence of residual hydrocarbons in the Upper Cretaceous section.

The company said it is in the process of evaluating initial results of a 4,000km² 3D seismic survey in the deeper water portion of the Guinea concession acquired by CGGVeritas.

Scotland-based Dana Petroleum holds a 23% non-operated working interest in the Guinea concession.