EXHIBIT A
                         EXECUTIVE EMPLOYMENT AGREEMENT
This  Executive  Employment  Agreement  ("Agreement") is made and effective this
July 21, 1999, by and between HYPERDYNANTICS CORPORATION ("Company") and KENT P.
WATTS,  ("Executive").

NOW,  THEREFORE,  the  parties  hereto  agree  as  follows:

1.     EMPLOYMENT.
       -----------
Company  hereby  agrees to employ Executive as its President and Chief Executive
Officer  (CEO),  and  Chief Financial Officer (CEO) and Executive hereby accepts
such  employment in accordance with the terms of this Agreement and the terms of
employment  applicable  to  regular  employees  of  Company. In the event of any
conflict  or  ambiguity  between  the  terms  of  this  Agreement  and  terms of
employment  applicable  to  regular employees, the terms of this Agreement shall
control.  Election  or  appointment  of  a  new  CFO  to  take  on  the  full
responsibilities  of  the  CFO  as  determined  by  the  by-laws and/or board of
directors,  shall  not  be a breach of this Agreement. Any action by the Company
terminating  the  Executive  as  President and CEO is a breach of this agreement
unless  specifically  in  accordance  with  this  agreement.

2.     DUTIES  OF  EXECUTIVE.
       ----------------------
The  duties  of  Executive  shall  include  the performance of all of the duties
typical  of  the  office  held  by  Executive  as described in the bylaws of the
Company  and  such  other duties and projects as may be assigned by the board of
directors of the Company as long as adequate financial resources are provided by
the  Company  so  that the Executive may reasonably manage such responsibilities
without  unreasonably  requiring ongoing long overtime hours to be worked by the
Executive  regardless  of  whether  the Executive, as recognized in the past has
worked  such  long  overtime hours. Executive shall devote his entire productive
time, ability and attention to the business of the Company and shall perform all
duties  in  a  professional,  ethical and businesslike manner. The duties of the
Executive  are  described  as  follows:
  CONTINUE  TO DEVELOP AND  MANAGE  THE  BUSINESS  PLAN  FOR  THE  COMPANY  WITH
  APPROPRIATE  APPROVAL  OF THE BOARD OF DIRECTORS TO MAXIMIZE SHAREHOLDER VALUE
  FOR THE  LONG  TERM.

  CONTINUE TO IMPROVE  AND  MAKE  A  MARKET FOR THE PUBLIC STOCK OF the COMPANY.

  MARKET THE COMPANY  TO  THE  PUBLIC WITH EMPHASIS ON THE INVESTMENT COMMUNITY.

  DEVELOP,  QUALIFY,  AND  PURSUE  ACQUISITIONS  OPPORTUNITIES

  CONTINUE TO KEEP THE COMPANY FULLY REPORTING WITH THE SEC UNTIL SUCH TIME AS A
  NEW CFO CAN BE HIRED  BY  THE  COMPANY  TO  OFFLOAD  THE  FINANCIAL  REPORTING
  RESPONSIBILITY  FROM EXECUTIVE  ACCORDING  TO  THE  REQUIREMENTS OF  THEM 1933
  SECURITIES ACT, THE 1934 SECURITIES EXCHANGE ACT,  MUD OTHER  APPLICABLE  LAW.


                                      -1-
<PAGE>
3.     COMPENSATION.
       -------------
Executive  will  be  paid  compensation  during  this  Agreement  as  follows:
A.     A  base  salary  of  one  hundred  thousand  dollars ($100,000) per year,
payable  semi-monthly  according  to the Company's regular payroll schedule. The
base  salary  shall  be  adjusted  at  the end of each year of employment at the
discretion  of  the  board  of  directors.

B.     An  incentive  salary equal to 5% of the adjusted net income (hereinafter
defined)  of  the  Company  on  a  quarterly  basis beginning with the Company's
quarter  ending September 30, 1999 and each subsequent quarter thereafter during
the term of this Agreement. "Adjusted net income" shall be the net income of the
Company  before  federal  and  state income taxes, determined in accordance with
generally  accepted  accounting  principles  by  the  Company's  controller on a
quarterly basis and the Company's independent accounting firm on an annual bias,
and adjusted to exclude: (i) any incentive salary payments paid pursuant to this
Agreement;  (ii) any contributions to pension and/or profit sharing plans; (iii)
any refund or deficiency of federal and state income taxes paid in a prior year;
and  (iv)  any  provision  for federal or state income taxes made in prior years
which  is  subsequently  determined  to be unnecessary. The Company's controller
shall  keep  the  Company's  books on a generally accepted accounting principles
(GAAP)  basis  throughout  the  year.  The controller shall accrue the incentive
salary  on  a  quarterly  basis  as  part  of the regular adjustments made every
quarter  to comply with (GAAP. On the very next payroll after the filing of each
of  the  Company's  quarterly  or annual report with the Securities and Exchange
Commission  (SEC),  the  controller shall add 75% of the incentive salary to the
payroll while withholding 25% for potential audit differences. The determination
of  the adjusted net income will be made by the Company's independent auditor on
an  annual  basis  upon completion of their audit. The audit which will be filed
with  the SEC shall be final and binding upon Executive and Company. The balance
of  the  incentive  salary  payment  shall be made on the next payroll after the
Company's independent accounting firm has concluded its audit. The final payment
for  the fiscal year will include the 25% held back for the first three quarters
of  operations  and  100%  of  the  incentive  salary for the final quarter, all
adjusted  up  or  down  based  on the final audit. The Company may not request a
refund  or  reduce  thc  base salary of Executive for a return of any of the 75%
estimated  payments  for  the  first  3  quarters  which  are  payments based on
unaudited  reports  prepared  on  a  GAAP  basis  by the controller. The maximum
incentive  salary  payable  for  any one year shall not exceed 100/o of the then
applicable  base  salary  of  Executive  so  that  the total salary available to
Executive  is  $200,000  per  year  including  base  plus  incentive  salary.

4.     BENEFITS.
       ---------
A.     Holidays.  Executive will be entitled to paid holidays each calendar year
       --------
as  is  the Company's policy for such holidays. Company will notify Executive on
or  about  the  beginning  of  each  calendar  year  with respect to the holiday
schedule  for  the  coming year. Personal holidays, if any, will be scheduled in
advance  subject  to requirements of Company. Such holidays must be taken during
the calendar year and cannot be carried forward into the next year. Executive is
not entitled to any personal holidays during the first six months of employment.

                                      -2-
<PAGE>
B.     Vacation. Executive shall be entitled to 10 paid vacation days each year.
       --------

C.     Sick Leave. Executive shall be entitled to sick leave and emergency leave
       ----------
according  to  the  regular  policies and procedures of Company. Additional sick
leave  or  emergency leave over and above paid leave provided by the Company, if
any,  shall  be  granted  at  the  discretion  of  the  board  of  directors.

D.     Medical  and Group Life Insurance. Company agrees to include Executive in
       ---------------------------------
the  group medical and hospital plan of Company and provide group life insurance
for  Executive  and  hi.  family  at  no charge to Executive. Executive shall be
responsible  for  payment  of any Federal or state income tax imposed upon these
benefits.

E.     Pension,  Profit  Sharing,  and  Stock  Option  Plans. Executive shall be
       -----------------------------------------------------
entitled  to  participate in an  pension or profit sharing plan or other type of
plan adopted  by  Company  for  the  benefit  of  its  officers  and/or  regular
employees. In addition to the regular Company plan,  the  Executive will receive
S-S stock options for unrestricted common stock of the  Company  with  a  strike
price of$1.00 (with a current market price of S.85) at a rate of seven  thousand
options for each one million dollars ($1,000,000) in revenues in  excess of  the
total  revenues reported on the Company's annual report for fiscal year end June
30, 1999. These options will be vested  upon  the audit for Fiscal year end June
30,2000 showing net income for the  year then ended. An additional 7,000 options
with  a  $1.00  stock  price  will  be  earned  for  each  one  million  dollars
($l, 000,000) of revenue over the total revenue  reported on  the  annual report
for  June,  30,2000. These  options  will  vest  upon  the audit for  the fiscal
year end June 30,2001 reflecting  net  income.

F.     Automobile.  Company  will  provide  existing automobile (1993 Ford Crown
       ----------
Victoria)  to  Executive  for  his complete use and will pay all maintenance and
related  flue  costs. Once the Company has remained profitable for four quarters
in  a  row, or realized net income in any three consecutive quarters of at least
$200,000,  then  the Company will provide a new automobile of Executive's choice
on  a capital lease or purchase basis (whichever is best). The details and price
the  vehicle will be separately approved by the Board. Company agrees to replace
the  automobile  with  a  new one at Executive's request no more often than once
every  two years. Company will pay all automobile operating expenses incurred by
Executive  in  the  performance  of  an Executive's company duties. Company will
procure  and maintain in force an automobile liability policy for the automobile
with  coverage,  including  Executive,  in  the  minimum  amount  of $l, 000,000
combined  single  limit  on  bodily  injury  and  property  damage.

G.     Expense  Reimbursement.  Executive  shall  have  a  miscellaneous expense
       ----------------------
allowance  of  $1,000  per  mouth  and will be entitled to reimbursement for all
reasonable  expenses  in  excess  of  such  amount,  including  travel  and
entertainment,  incurred  by Executive in the performance of Executive's duties.
Executive  will maintain records and written receipts as required by the Company
policy  and  reasonably requested by the board of directors to substantiate such
expenses.  Once the Company has maintained profits for four consecutive quarters
or  reports  net  income  of at least $200,000 for any three-quarter period, the
board  of  directors  will  look  to


                                      -3-
<PAGE>
determine  the advantage of having a Company owned country club membership to be
used  primarily  for  customer  and investor entertainment. The approval of such
membership  will  be  at  the  total descretion of the board of directors but is
intended  herein  that  Executive shall be the initial member representative for
the  Company.

5.     TERM  AND  TERMINATION.
       -----------------------
A.     The  Initial Term of this Agreement shall commence on July 21,1999 and it
shall  continue  in  effect  for  a period of one year eleven months and 10 days
ending  on  June  30,  2001. Thereafter, the Agreement shall be renewed upon the
mutual  agreement  of  Executive  and  Company.  This  Agreement  and Executives
employment  may  be  terminated at Company's discretion during the Initial Term,
provided  that  Company  shall  pay to Executive arm amount equal to Executive's
base  salary for the remaining period of Initial Term, plus all incentive salary
accrued but not yet paid (whether audited or not), plus an amount equal to fifty
percent  (50%)  of  Executive's  annual  base  salary.

B.     This Agreement and Executive's employment may be terminated by Company at
its  discretion  at any time after the Initial Term, provided that in such case,
Executive  shall  be  paid  fifty  percent  (50%) of Executive's then applicable
annual  base  salary plus all accrued incentive salary (whether audited or not).

C.     This  Agreement  may be terminated by Executive at Executive's discretion

by  providing  at least thirty (30) days prior written notice to Company. In the
event  of  termination  by  Executive  pursuant  to this subsection, Company may
immediately  relieve  Executive  of  all  duties  and immediately terminate this
Agreement, provided that Company shall pay Executive at the then applicable base
salary rate to the termination date included in Executive's original termination
notice.

6.     NOTICES.
       --------
Any  notice  required by this Agreement or given in connection with it, shall be
in  writing  and shall be given to the appropriate party by personal delivery or
by  certified  mail, postage prepaid, or recognized overnight delivery services;

  If  to  Company: The registered office as it may change from time to time but
  is currently,

     The  Board  of  Directors  of  Hyperdynamics  Corporation
     2656  SOUTH  LOOP  WEST
     SUITE  103
     HOUSTON,  TEXAS  77054

  If  to  Executive:  At  the  Company  address  or
     KENT  P.  WATTS
     3112  HERITAGE  GREEN  DRIVE
     PEARLAND,  TEXAS,  77581


                                      -4-
<PAGE>
7.     FINAL  AGREEMENT.
       -----------------
This  Agreement terminates and supersedes all prior understandings or agreements
on  the  subject matter hereof. This Agreement may be modified only by a further
writing  that  is  duly  executed  by  both  parties.

8.  Governing  Law.
    ---------------
This  Agreement  shall  be construed and enforced in accordance with the laws of
the  state  of  Texas.

9.     HEADINGS.
       --------
Headings  used in this Agreement are provided for convenience only and shall not
be  used  to  construe  meaning  or  intent.

10.     NO  ASSIGNMENT.
        ---------------
Neither  this Agreement nor any or interest in this Agreement may be assigned by
Executive  without  the  prior express written approval of Company, which may be
withheld  by  Company  at  Company's  absolute  discretion.

11.     SEVERABILITY.
        -------------
If any term of this Agreement is held by a Court of competent jurisdiction to be
invalid  or  unenforceable,  then this Agreement, including all of the remaining
terms,  will remain in full force and effect as if such invalid or unenforceable
term  had  never  been  included.


IN  WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of the
date  first  above  written.

HYPERDYNAMLC  CORPORATION  (COMPANY)               KENT  P.  WATTS  (EXECUTIVE)

/s/  ROBERT  J.  HILL   7/22/99                    /s/  KENT  P.  WATTS
------------------------------------               ----------------------------
ROBERT  J.  HILL,  VICE  PRESIDENT                 KENT  P.  WATTS


                                      -5-
<PAGE>