UNITED  STATES
                      SECURITIES  AND  EXCHANGE  COMMISSION
                            Washington,  D.C.  20549


                                   FORM 10-QSB


[X]     Quarterly  report  pursuant  to  Section  13  or 15(d) of the Securities
        Exchange Act of 1934: For the quarterly period ended:  December 31, 1999
                                                               -----------------
                                       or

[ ]     Transition  report  pursuant  to  Section 13 or 15(d) of the  Securities
        Exchange Act of 1934: For the transition period from _______ to ________

                      Commission file number:     000-25496


                            HYPERDYNAMICS CORPORATION
             (Exact name of registrant as specified in its charter)


                Delaware                             87-0400335
     (State or other jurisdiction                 (IRS  Employer
    of incorporation or organization)           Identification  No.)


                         2656 South Loop West, Suite 103
                              Houston, Texas 77054
          (Address of principal executive offices, including zip code)

                                  713-660-9771
                 (Issuer's telephone number including area code)

     Indicate  by  check  mark  whether the registrant (1) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or  for  such shorter period that the
registrant  was required to file such reports), and (2) has been subject to such
filing  requirements  for  the  past  90  days.  Yes  X   No
                                                     ---     ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS

As  of  February  7,  2000, 12,726,503 shares of common stock, $0.001 par value,
were  outstanding.  Transitional  Small  Business  Disclosure  Format
(check  one): Yes [  ] No [X]


<PAGE>
                                TABLE OF CONTENTS

PART  I     FINANCIAL  INFORMATION

     ITEM  1     Financial  Statements                                         3

          Consolidated  Balance  Sheet
               at  December  31,  1999  (unaudited)                            3

          Consolidated  Statements  of  Income  for  the  three
               and  six  months  ended  December  31,  1999
               and  1998  (both  unaudited)                                    4

          Consolidated  Statements  of  Stockholders'  Equity
               for  the  six  months  December  31,  1999
               and  1998  (both  unaudited)                                    5

          Consolidated  Statements  of  Cash  Flows  for  the  six
               months  ended  December  31,  1998
               and  1998  (both  unaudited)                                    6

          Notes  to  Consolidated  Financial  Statements                       7

     ITEM  2     Management's Discussion and Analysis of Financial
                 Condition  and  Results  of  Operations                       8

PART  II     OTHER  INFORMATION

          ITEM  6     Exhibits  and  Reports  on  Form  8-K                   10

     (a)     Exhibits

     (b)     Reports  on  Form  8-K

SIGNATURES                                                                    10


                                        2
<PAGE>
                         PART 1     FINANCIAL INFORMATION

ITEM  1.     Financial  Statements

<TABLE>
<CAPTION>
                            HYPERDYNAMICS CORPORATION
                                AND SUBSIDIARIES
                           Consolidated Balance Sheet
                                December 31, 1999

ASSETS
Current Assets
<S>                                                 <C>
  Cash - Operating                                  $   3,583
           Other                                        2,351
  Accounts Receivable - trade                         306,239
                           other                       28,001
  Inventory                                            88,148
  Revenue interest current portion                     85,970
                           Prepaid expenses            65,212
                                                    ----------
TOTAL CURRENT ASSETS                                  579,504
PROPERTY AND EQUIPMENT
Computers, communication & IS infrastructure          159,359
Office furniture and equipment                         10,152
Leasehold improvements                                 11,188
                                                    ----------
   Total property and equipment                       180,699
      Accumulated depreciation                       (111,231)
                                                    ----------
TOTAL NET PROPERTY AND EQUIPMENT                       69,468
OTHER ASSETS
Investment in revenue sharing - long term             106,827
Intangible assets - net (PS customer list)             45,900
Other                                                 101,598
                                                    ----------
                               TOTAL OTHER ASSETS     254,325
                                                    ----------
TOTAL ASSETS                                        $ 903,297
                                                    ==========
</TABLE>

                       See notes to financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                            HYPERDYNAMICS CORPORATION
                                AND SUBSIDIARIES
                           Consolidated Balance Sheet
                                December 31, 1999


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
<S>                                         <C>
  Accounts payable - trade                    $168,576
  Accrued payroll taxes                        2,459
  Sales taxes payable                          21,255
                                            ------------
               TOTAL CURRENT LIABILITIES      192,290

OTHER LIABILITIES AND DEFERRED INCOME
  Deferred Revenue                             65,000
                                            ------------
   TOTAL LIABILITIES AND DEFERRED INCOME       65,000

STOCKHOLDERS' EQUITY

Common stock, par value $0.001;                 12,564
  50,000,000 shares authorized; 12,564,503
  shares issued and outstanding.
  Additional paid-in capital                 1,787,270
  Retained (deficit)                        (1,153,827)
                                            ------------
               TOTAL STOCKHOLDERS' EQUITY     646,007
                                            ------------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY     $903,297
                                            ============
</TABLE>

                       See notes to financial statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                     HYPERDYNAMICS CORPORATION
                                         AND SUBSIDIARIES
                                  Consolidated Income Statements
                      3 Months and 6 Months Ended December 31, 1999 and 1998

                                            3 MONTHS ENDED DECEMBER 31  6 MONTHS ENDED DECEMBER 31
                                            --------------------------  --------------------------
                                                1999          1998          1999          1998
                                            ------------  ------------  ------------  ------------
<S>                                         <C>           <C>           <C>           <C>
Revenues                                    $   712,422   $   177,265   $   955,811   $   334,168
Cost of Revenues                                444,294        91,878       542,547       202,055
                                            ------------  ------------  ------------  ------------
                       GROSS MARGIN             268,128        85,387       413,264       132,113
Operating Expenses
  Selling                                        36,901         2,298        41,215         7,969
  General and Administrative                    122,978       147,748       254,164       261,576
  Interest                                            0         3,277             0         3,277
  Depreciation                                    6,250         8,340        12,500        15,149
                                            ------------  ------------  ------------  ------------
           TOTAL OPERATING EXPENSES             166,129       161,663       307,879       287,971
                                            ------------  ------------  ------------  ------------
            OPERATING INCOME/(LOSS)             101,999       (76,276)      105,385      (155,858)
Other Income (Expense)
  Gain on Sale of Discontinued Operations          (568)            0       127,065             0
  Loss from Discontinued Operations                   0           654          (568)            0
  Other                                              29        (9,397)           28        (7,972)
                                            ------------  ------------  ------------  ------------
  NET INCOME/(LOSS) BEFORE INCOME TAXES         101,460       (85,019)      231,910      (163,830)
                                            ------------  ------------  ------------  ------------
Income Tax (Benefit)                                  0             0             0             0
                     NET INCOME/(LOSS)      $   101,460      ($85,019)  $   231,910     ($163,830)
    NET INCOME/(LOSS) PER COMMON SHARE      $       .01   $      (.01)  $       .02   $      (.02)
Weighted average share outstanding           12,437,329    12,208,321    12,437,329    12,208,321

</TABLE>

                       See notes to financial statements.


                                        5
<PAGE>
<TABLE>
<CAPTION>
                                    HYPERDYNAMICS  CORPORATION
                                       AND  SUBSIDIARIES
                            Consolidated  Statement  of  Cash  Flows
                         6  Months  Ended  December  31,  1999  and  1998

                                                                                    1999        1998
                                                                                 ----------  ----------
<S>                                                                              <C>         <C>
Cash flows from operating activities
  Net Income/(Loss)                                                               105,414    $(163,830)
Adjustments to reconcile net income to cash provided from operating activities
  Depreciation and amortization                                                    12,500      15,149
  Sale of Discontinued Operations                                                 127,633        0
  Loss from Discontinued Operations                                                (568)         0
  Note conversion                                                                    0         7,972
  Decrease in equipment from discontinued operations                               26,468        0
Net (increase) decrease receivables and other
    Certificate of deposit - restricted                                              0         94,000
    Accounts receivable - trade                                                  (219,853)    (44,912)
                          Other                                                   (23,000)     30,000
    Due from officers                                                                0           0
    Inventory                                                                     (16,664)    (33,946)
    Prepaid expenses                                                              (60,164)       0
    Revenue sharing                                                               (50,000)     20,037
    Deposits and Other assets                                                    (111,169)       0
Net increase (decrease) accruals / payables
    Accounts payable - trade                                                       7,659       60,754
    Accrued expenses                                                              (10,120)     9,436
    Accrued taxes                                                                  19,015     (5,890)
    Other                                                                          53,800     (5,950)
                                                                                 ----------  ----------
                       NET CASH (USED) BY OPERATING ACTIVITIES                   (139,049)    (17,180)
Cash flows from investing activities
Purchase of property and equipment                                                   0        (13,911)
                                                                                 ----------  ----------
             NET CASH PROVIDED (USED) FOR INVESTING ACTIVITIES                       0        (13,911)
Cash flows from financing activities
  Sale of common stock - related party                                             50,000        0
  Sale of common stock                                                             27,500        0
  Increase in short-term convertible notes                                           0         27,680
                                                                                 ----------  ----------
                   NET CASH PROVIDED FROM FINANCING ACTIVITIES                     77,500      27,680
                                                                                 ----------  ----------
                                          NET DECREASE IN CASH                    (61,549)    (3,411)
                                   CASH AT BEGINNING OF PERIOD                     67,483      4,908
                                                                                 ----------  ----------
                    CASH AND CASH EQUIVALENTS AT END OF PERIOD                     $5,934      $1,549
Supplemental Information
Interest paid                                                                        $0          $0
</TABLE>

                       See notes to financial statements.


                                        6
<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                            HYPERDYNAMICS CORPORATION
                          NOTES TO FINANCIAL STATEMENTS

1.     The  unaudited  condensed  consolidated  financial  statements  have been
       prepared in accordance with generally accepted accounting  principles for
       interim financial  information. The financial statements contained herein
       should be read in  conjunction  with  the  audited  financial  statements
       of  the  Company. Accordingly,  footnote  disclosures  which  would
       substantially  duplicate  the disclosure in  those  statements  has  been
       omitted.

       Certain  reclassifications  were  made  to financials as of December 31,
       1998 in order  to  conform  to  the  current  presentation.

2.     During  the  quarter and six months ended December 31, 1999, warrants for
       275,000  unregistered common stock with a strike price of $2.00 per share
       were granted  to  Robert Gleckman pursuant  to  a  consulting  agreement.
       During the same period 57,500 options with  a  strike price of $2.00  per
       share for registered common  stock  under S-8 registration  were  granted
       to  employees.

3.     During  the  second quarter ending December 31, 1999,100,000 options were
       exercised  at  $.50  per  share  by  Michael  E.  Watts,  brother of Kent
       Watts, President for the Company  and  100,000  shares  were  issued as a
       result. During the same  period  55,000  options were  exercised  at $.50
       per share by others and the 55,000 shares were issued. This is a total of
       155,000 options exercised for the period  ended  December  31,  1999  for
       a  total  of  $77,500.


              CAUTIONARY  STATEMENT ON FORWARD-LOOKING INFORMATION

The  Company  is including the following cautionary statement to make applicable
and  take  advantage  of  the  safe  harbor provision of  the Private Securities
Litigation  Reform Act of 1995 for any forward-looking statements made by, or on
behalf  of,  the  Company.   This  Quarterly  Report  on  Form  10-QSB  contains
forward-looking  statements.  Forward-looking  statements  include  statements
concerning  plans, objectives, goals, strategies, expectations, future events or
performance and underlying assumptions and other statements which are other than
statements  of  historical  facts.  Certain  statements  contained  herein  are
forward-looking  statements  and,  accordingly,  involve risks and uncertainties
which  could  cause  actual  results or outcomes to differ materially from those
expressed  in  the  forward-looking  statements.  The  Company's  expectations,
beliefs  and  projections  are  expressed  in good faith and are believed by the
Company  to have a reasonable basis, including without limitations, management's
examination  of  historical  operating  trends,  data contained in the Company's
records  and  other  data  available  from  third  parties,  but there can be no
assurance  that management's expectations, beliefs or projections will result or
be achieved or accomplished.  In addition to other factors and matters discussed
elsewhere  herein,  the following are important factors that, in the view of the
Company, could cause actual results to differ materially from those discussed in
the forward-looking statements: the ability of the Company to respond to changes
in  the  information  system  environment,  competition,  the  availability  of
financing, and, if available, on terms and conditions acceptable to the Company,
and  the  availability  of  personnel  in  the  future.

ITEM  2     Management's  Discussion  and  Analysis  of  Financial Condition and
            Results  of  Operations

General  Discussion

HyperDynamics  Corporation  is an information technology service provider (ITSP)
that  maximizes  it's clients return on their technology investment. The Company


                                        7
<PAGE>
provides  conventional IT services, migration services from conventional ways of
doing  business to eBusiness, and complete IThosting services whereby it becomes
the  IT  department  for  its  clients.  The  Hyperdynamics's  strategy provides
flexible  solutions  for its customers to transition to a fully hosted eBusiness
model.

Recent  Events

In  January,  2000  the  Company  raised three million dollars ($3,000,000) cash
through  the  sale  of  3,000  shares  of  its  Series  A  Preferred  Stock.

Continued  Conventional  IT  services

During  1999 IThost.net Corporation (formerly Microdata Systems, Inc.) continued
to  provide  networks, systems, servers, and software to the client based it has
established  since  1988. The Company will provide such services as requested to
be  flexible  while  it  educates  its  clients  on  new ways of providing these
services  through  eBusiness  systems and its complete IThosting service that it
continues  to  develop.  Approximately  one  fourth  of  the  Company's revenues
continue  to  come  from  these  network  and  system  integration  jobs.

Major  eBusiness

The  Company  started  a major project with The Mattress Venture, LP to supply a
complete new point-of-sale system for its over 130 "Mattress Firm" retail stores
across the country. Working as an eEnterprise partner for Great Plains Software,
a  custom retail point-of-sale software application has been developed and is in
the process of being rolled out over the next few months. During the quarter the
Great  Plains  financial  system  was  implemented  and is now being used by the
Mattress  Firm  for  accounting and financial reporting. To date the Company has
realized  approximately  one  million  dollars ($1,000,000) in revenue from this
project  since  April  of  1999.  It  is  expected  that this project could grow
substantially  and  there  is  a  possibility  to  obtain a long-term IT hosting
agreement.

In  August  of  1999  the  Company started a project with Drydiaper.com, IncThe
Company  is developing a complete eCommerce web-site. It is developing the site,
Drybabies.com  which  is  scheduled for release launch in the current quarter to
end  March 31, 2000. This project is expected to become a full-blown integration
project  with  respect to manufacturing as well as retail store point-of-sale as
well. The Web-site will ultimately allow orders to be taken off the web-site and
to be shipped without human intervention until the shipping carrier picks up the
order.  Being  tied into inventory control on the back end will help control and
maintain  the  manufacturing  process  on  an  efficient  basis  as  well.
The  Company has several other projects of similar nature that it is forecasting
and  expecting  to  announce.

Vendor  Relationships

     Great  Plains  Software

     In  fiscal 1999 the Company added to its eEnterprise and Dynamics
     certifications with Great Plains Software. The additional authorizations
     and certifications are as  follows:

     International  Partner  Authorization
     Service  Management  Series
     Great  Plains  Siebel  Front  Office
     Project  Accounting  Series
     Enterprise  Reporting


                                        8
<PAGE>
     The Company is currently on target  to  be  in  the top 10% of Great Plains
     Partners.  The  Company  plans to continue to enhance this key relationship
     in every  way  possible  including an application to  become  a  designated
     ASP.

     Citrix  Systems,  Inc.

     During the  fiscal  year  1999,  the  Company  highest  level  Citrix  Gold
     authorization and  certification  This  qualifies the Company to administer
     systems including  Citrix's software for high end application servers. Next
     to the advancement of web based  software  technology  and  the  increasing
     bandwidth  at  decreasing  prices, Microsoft  NT  Terminal  Serer  addition
     (Originally  developed  by  Citrix) and  Citrix  Metaframe  technology  are
     significant  pieces  that  enable  the  Company's  IThosting  strategy.

     Intel

     In  fiscal year 1999, the  Company  has  made  substantial progress towards
     a certification  as  an  Intel ASP. (Authorized Service Provider). This  is
     Intel's highest level  certification. The  Company  embraces  the  idea  of
     providing the best cost/benefit  solution for high-end rack-mounted servers
     that  are  Intel  only and  second  to  none  in  processing  power  and
     scalability. The Company has several other strategic  vendor  relationships
     that  it  is  developing  and  plans  to  announce  in  the current year in
     connection  with  its  IThosting  capability.

IT  hosting  strategy

Since around May of 1999, the Company has planned to enhance its capabilities to
role  out  and  establish  its  new  IThosting  services.  Over  two  years ago,
Hyperdynamics  established  its  position  as  a  premier information technology
service  provider  (ITSP).  Months later, the concept of the Application Service
Provider  (ASP) was coined. Hyperdynamics Corporation plans to announce specific
strategies and relationships with true tier 1 Internet providers to substantiate
and  accentuate  its  position as the "premier ITSP". In the process it plans to
establish "ITHOST.NET" in the coming months. Based its new strategy, the Company
expects  to  increase  its IThosting revenues dramatically starting in the final
quarter  of  FYE  2000.

Results  of  Operations

Sales  increased  to  $712,422 and $955,811 for the three (3) months and six (6)
months  ended  December  31,  1999,  respectively. This compared to $177,265 and
$334,168  for the same periods in 1998, respectively. The increase in revenue is
a  result  of  the  continuation  of  large  projects  started  in  1999  while
successfully  closing  new  business  in  addition  to  these  projects.


                                        9
<PAGE>
Cost  of  Revenues  increased  correspondingly  to $444,294 and $542,547 for the
three  (3) months and six (6) months ended December 31, 1999, respectively. This
compared  to  $91,878  and  $202,055 for the same periods in 1998, respectively.

For  the  three (3) month period ended December 31, 1999, gross margin decreased
to 37.70% compared to 48.2% for the same period in 1998. The decrease was due to
a portion of the Company's service revenue that was contracted to a third party,
thereby  reducing  its  gross margin percentage for the quarter. For the six (6)
months period ended December 31, 1999, gross margin increased to 43.24% compared
to 39.5% for the same period in 1998. The increase overall for the six months is
due  to  increasing efficiencies overall within the organization to provide more
cost  effective  services.

Selling,  General and Administrative expenses increased to $159,879 and $295,379
in  the  three  (3)month  and six (6) month periods ending December 31, 1999, as
compared  to  $150,046  and $269,545 for the same periods in 1998, respectively.
The  increase  was  primarily  due  to  the  addition  to  sales  staff.

Net  Income.  The  net  income  of the Company was $101,460 and $231,910 for the
three (3) month and six (6) month periods ended December 31, 1999. This compares
to  losses  of  $(85,019)  and  $(163,830)  for  the  same  periods  in  1998,
respectively.  The  positive results are due to the continuing policy to control
overhead  while  maintaining  a  flexible  approach to providing its information
technology  services  while  closing  an  increasing  number of longer term more
lucrative  eBusiness based contracts. Additionally, the people that it has added
have  either directly added to sales force or allowed others in the organization
to  focus  more  heavily  on  developing  the  Company's  revenues.

Liquidity  and  Capital  Resources

At  December  31,  1999 the Company's current ratio of current assets to current
liabilities  was  3.01.  This  compares  to  .92  for  1998.  The  Company  has
dramatically  improved its current ratio through positive results of operations.
Additionally,  to  fuel  its growth both through operations and acquisition, the
Company  filed  form  8K  on  January  26, 2000 disclosing that it has raised an
additional  three  million  dollars  ($3,000,000) of new capital through a Reg D
private  placement.  The  Company  does  not have any long-term debt nor does it
plan  for  any.

In  addition  to  the  above,  the Company is in a position to obtain additional
capital  upon the exercise of previously-issued warrants and outstanding options
for  common  stock.

Prospective  Information

The  Company is now realizing increased sales and growth in profits. The success
of  the  Company  to  date has been accomplished with limited capital resources.
Now  and  for  future  periods, it has obtained the working capital necessary to
meet  its  short-term  business plan goals and to continue to grow with profits.
Management  is  now  evaluating  its  opportunity to apply for a National Market
System  (NMS)  listing  on  the  NASDAQ  stock  exchange.

Management  will  continue  to  update the Company's ITSP business plan and will
look  to  start  its  next phase of capitalization to coincide with increasingly
larger  profit  based  acquisition  targets  while  its unique IThosting service
strategy  continues  to  grow  its  recurring  revenue  base.


                                       10
<PAGE>
                          PART II     OTHER INFORMATION

ITEM  6     Exhibits  and  Reports  on  Form  8-K

    (A)     EXHIBITS

            Exhibit  Number              Description

                 27                 Financial  Data  Schedule

    (B)     REPORTS  ON  FORM  8-K

            On  January  26,  2000,  the  Company  filed  a  current  report  on
            Form 8-K reporting  item 5, Other Events regarding the three million
            dollars ($3,000,000)  of  additional  financing  we  have  received.



                                   SIGNATURE


Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
Registrant  has  duly  caused  this  Report  to  be  signed on its behalf by the
undersigned  thereunto  duly

                                        HyperDynamics  Corporation
                                        (Registrant)

                                        By: /s/  Kent Watts
                                        ----------------------------------
                                        Kent Watts, Chairman of the Board,
                                        Chief Executive Officer,
                                        and Chief Accounting Officer

Dated: February 7, 2000


                                       11
<PAGE>