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: September 30, 2000
                                                            ------------------
      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 Identification No.)
of  incorporation  or  organization)

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

1.     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

2.     As  of  November  14,  2000 13,636,506 shares of common stock, $0.001 par
       value,  were  outstanding.

Transitional  Small  Business  Disclosure  Format  (check  one): Yes [  ] No [X]


<PAGE>
<TABLE>
<CAPTION>
                                 Table  of  Contents

PART I     FINANCIAL INFORMATION
<S>                                                                      <C>
     ITEM 1     Financial Statements                                       3
        Consolidated Balance Sheet at
           September 30, 2000 (unaudited)                                  3
        Consolidated Statements of Income for the three
           months ended September 30, 2000
           and 1999 (both unaudited)                                       4
        Consolidated Statements of Cash Flows for the three
           months ended September 30, 2000 and 1999
           (both unaudited)                                                5
        Notes to Consolidated Financial Statements                         6

     ITEM 2 Management's Discussion and Analysis of Financial
            Condition and Results of Operations                          6-8

PART II     OTHER INFORMATION

     ITEM 6     Exhibits and Reports on Form 8-K                           9
        (a)     Exhibits
        (b)     Reports on Form 8-K

     SIGNATURES                                                            9
</TABLE>


1. 2
<PAGE>
                        Part 1     Financial Information

ITEM  1     FINANCIAL  STATEMENTS

<TABLE>
<CAPTION>
                            HYPERDYNAMICS CORPORATION
                                  Balance Sheet
                               September 30, 2000
ASSETS
Current Assets
<S>                                                     <C>
                                                Cash    $   892,706
                              Certificate of deposit        436,300
  Accounts receivable, net of allowance for doubtful
                                 accounts of $18,068        175,303
                                           Inventory        233,962
                                    Revenue interest         32,365
                                    Prepaid expenses         49,457
                                     Note receivable        400,000
                                Other current assets         21,406
                                                        ------------
                                TOTAL CURRENT ASSETS      2,241,499

Property and Equipment, net of accumulated
depreciation of $60,706                                      47,170

Other Assets
                            Construction in progress         47,685
                             Intangible assets - net         27,200
                                  Deposits and other         20,632
                                                        ------------
                                  Total other assets         95,517
                                                        ------------
TOTAL ASSETS                                            $ 2,384,186
                                                        ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
                            Accounts payable - Trade    $   262,748
                                    Accrued expenses         51,443
                                   Dividends payable         60,323
                                                        ------------
                           TOTAL CURRENT LIABILITIES        374,514
                                                        ------------
Stockholders' Equity
Preferred stock, par value $0.001; 20,000,000 shares
    authorized; 2,120 shares issued and outstanding.              2
   Common stock, par value $0.001; 50,000,000 shares
authorized;13,542,505 shares issued and outstanding.         13,543
                          Additional paid-in capital      4,391,643
                       Stock subscription receivable         (5,000)
                                  Retained (deficit)     (2,390,516)
                                                        ------------
                          Total Stockholders' equity      2,009,672
                                                        ------------
          Total Liabilities and Stockholders' Equity    $ 2,384,186
--------------------------------------------------------============
</TABLE>
                 See  notes  to  financial  statements


1. 3
<PAGE>
<TABLE>
<CAPTION>
                             HYPERDYNAMICS CORPORATION
                          Consolidated Income Statements
                    3 Months Ended September 30, 2000 and 1999

                                                            2000          1999
<S>                                                     <C>           <C>
Revenues                                                $   130,789   $   233,389
Cost of Revenues                                            241,686       155,381
                                                        ------------  ------------
                                         GROSS MARGIN      (110,897)       78,008
                                                        ------------  ------------
Operating Expenses
                                              Selling        53,038        14,343
                           General and Administrative       252,541        54,029
                                         Depreciation         8,340         6,250
                                                        ------------  ------------
                             TOTAL OPERATING EXPENSES       313,920        74,622
                                                        ------------  ------------
                              OPERATING INCOME (LOSS)      (424,816)        3,386
                                                        ------------  ------------
Other Income (Expense)
            Gain on sale of Revenue Sharing Agreement         3,500
                                      Interest income        32,534             0
                                     Interest expense
                                                        ------------  ------------
            Income /(Loss) From Continuing Operations      (388,732)        3,386
     Gain/(Loss) from Discontinued Operations, net of             0          (568)
        income tax benefit of $0 and $0, respectively
Gain / (Loss) on Sale of Discontinued Operations, net             0       127,633
    of income tax benefit of $0 and $0 , respectively
                                NET INCOME (LOSS) BIT      (388,732)      130,450
                                                        ------------  ------------
Income Tax (Benefit)                                              0             0
                                     NET INCOME (LOSS      (388,732)  $   130,450
                                                        ============  ============
Income (Loss) per Common Share
                      NET INCOME (LOSS) PER C/S SHARE   $     (0.03)  $      0.01
                                                        ------------  ------------
Weighted average share outstanding                       13,263,803    12,411,676
                                                        ------------  ------------

</TABLE>
                        See  notes  to  financial  statements


1. 4
<PAGE>
<TABLE>
<CAPTION>
                             HYPERDYNAMICS CORPORATION
                    Consolidated  Statements  of  Cash  Flows
               3  Months  Ended  ,September  30,  2000  and  1999
                                                                   2000        1999
<S>                                                              <C>          <C>
Cash flows from operating activities
                                             Net Income (loss)   $ (388,731)  130,450
Adjustments to reconcile net income to cash provided
from operating activities
                                 Depreciation and amortization        8,340     6,250
                     Gain on sale of revenue sharing agreement       (3,500)
                               Sale of Discontinued Operations               (127,065)
                             Loss from Discontinued Operations                    568
Changes in:
                                   Accounts receivable - Trade      361,889   (25,177)
                                                      -  Other                  2,000
                                                     Inventory       (8,314)  (29,700)
                                                  Other assets       26,784   (37,696)
                                              Prepaid expenses       (8,750)  (41,014)
                                Collection of revenue interest                  1,263
                                              Accounts payable     (111,275)   57,073
                                              Accrued expenses        6,988     1,257
                                                                 -----------  --------
                        NET CASH USED FOR OPERATING ACTIVITIES     (108,569)  (61,791)
Cash flows from investing activities
                                      Construction in progress      (47,685)
                                      Purchase of fixed assets         (692)
                                                                 -----------  --------
                        NET CASH USED FOR INVESTING ACTIVITIES      (48,377)
Cash flows from financing activities
                                     Purchases of common stock       (2,602)
      Sale of common stock, net of subscription receivable of        18,819    10,000
                                     $5,000                      -----------  --------
                   NET CASH PROVIDED FROM FINANCING ACTIVITIES       16,217    10,000
                               Net increase (decrease) in cash     (140,729)  (51,791)
                                   CASH AT BEGINNING OF PERIOD    1,033,435    56,200
                                                                 -----------  --------
                                         CASH AT END OF PERIOD      892,706     4,409
                                                                 ===========  ========
Supplemental Information
                                                 Interest paid
</TABLE>
                           See  notes  to  financial  statements


1. 5
<PAGE>
                             HYPERDYNAMICS CORPORATION
                         NOTES  TO  FINANCIAL  STATEMENTS

1.   The  unaudited   consolidated   financial   statements   of   Hyperdynamics
     Corporation  have been  prepared  in  accordance  with  generally  accepted
     accounting  principles  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 the Company's  latest
     Annual  Report  filed  with  the  SEC on Form  10-KSB.  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 2000 as reported in the Form 10-KSB, have been omitted.

2.   During  the  quarter  47,638  options  for free  trading  shares  each were
     exercised  for  $23,819  and  8,000  free  trading  shares  were  issued to
     professionals for compensation valued at $8,000.

3.   Preferred Stock. During the quarter $440,000 dollars worth or 440 shares of
     Series A Preferred stock was converted at 80% of the previous 5 day average
     trading days upon the  conversion  date.  The Company issued 456,370 shares
     upon these  conversions  and  additional  3,169  shares to pay for  accrued
     dividends on converted preferred stock.

              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  10QSB  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.


1. 6
<PAGE>
ITEM  2.    MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL CONDITION AND
            RESULTS  OF  OPERATIONS

General  Discussion

During  the  quarter,  we  reached  an  agreement with AT&T to build a Dedicated
Entrance  Facility  to our new Integrated Technology Center. This accomplishment
insured  the  redundancy,  quality  and scalability of our Internet backbone and
will  serve  as  a  key infrastructure for rapid growth in our recurring revenue
based  HypersourceSM  services.  The  primary focus for the quarter was centered
around issues related to actually getting the construction started for our first
Integrated technology center. As of May of this year, the Company had originally
planned  to have  its new ITC online by August.  It became apparent in July that
the  Westwood Technology Center was not going to be in a position to deliver the
space  to  us  in  the expected time frame so our expected start date was pushed
back  several  months.  Other  factors  including  city  building  permits,
architectural  and engineering issues, and long lead time components delayed the
implementation  of  the  construction project even more. Now the construction is
over  50%  completed  and  is  moving along at a much more rapid pace. We expect
construction  to  be  completed  by the first week in December. This is also the
time  frame  that  the  first  leg  of our dual entrance diverse routed fiber is
expected  to  be  installed  and  ready  to  be  lit  up.

As  a  result  of  this  major project and all related aspects necessary for its
success,  our  sales  and  marketing has been centered around the new ITC coming
online  and we decided that it would be difficult to take on new conventional IT
business while transitioning to the new facility. Due largely to the delays, our
revenues dropped sharply this quarter and are expected to remain sub-par through
the  end  of  the  2nd  quarter.

Operationally,  we  expect to maintain three primary revenue sources. We provide
conventional  IT  services,  migration  services  to  help  our  clients develop
end-to-end  eBusiness  systems, and we are rapidly preparing to fully launch our
new  bundled service offerings for complete IT hosting. This quarter and next as
we  begin  to  implement  our  IT  hosting  strategies we will be establishing a
seriously  focused  marketing  and  sales plan, especially for our HypersourceSM
services.  As we move closer to become on-line in the Month of December with the
Houston  based  Integrated  Technology  Center (ITC), we are working to fill our
initial  ITC  to capacity. While accomplishing this task by singing up long-term
recurring revenue based contracts, we will also be preparing to raise additional
capital  and  looking  for  the  next  opportunities  to  expand  nationally.

Results  of  Operations

Sales  decreased  to $130,789 for the three (3) months ended September 30, 2000.
This  compared  to $233,389 for the same period in 1999. The decrease in revenue
is  a  result  of  the discontinuation of large projects started in 1999 and the
marketing  and  sales  focus  heavily  on  the  new  ITC  that has been delayed.
Cost  of Revenues increased to $241,686 for the three (3) months ended September
30,  2000. This compared to $155,381 for the same periods in 1999. We staffed up
with  cross-trained  IT  professionals  necessary  to  fill  up  and service the
business  expected  for  the  new  ITC.  These operational employees salaries of
$78,652 have been charged to Cost of Revenues. Also, in an effort to prepare for
our move to our new facility, we have revalued our inventory and determined that
we  had  approximately  $30,000  in  obsolete  inventory  and another $20,000 in
shrinkage.  We  made a total adjustment of $50,277 against Cost of Revenues as a
result.  We  hired  a  transaction  processing  and inventory control manager to
increase  our  control  on  inventory  for  future  periods.

For  the three (3) month period ended September 30, 2000, gross margin decreased
to  a  (85)%  compared  to  33%  for  the  same period in 1999. The decrease and
negative  amount was due to the allocation of operational employees salaries and
inventory  adjustments  mentioned  above in combination with the overall drop in
service  revenues  in  preparation  for  the  new  facility  coming  online.


1. 7
<PAGE>
Selling, General and Administrative expenses increased to $ 313,920 in the three
(3) month period ending September 30, 2000, as compared to $ 74,622 for the same
period  in  1999.  The  increase  was  primarily due to significant increases in
employee  related  costs  and  legal  fees  from  a  year  ago.

Net  Loss.  Our  net  loss  was  ($388,732) for the three (3) month period ended
September  30,  2000. This compares to a gain of $130,450 for the same period in
1999.  As discussed above the negative results are due primarily to the decrease
in  revenues  as  a result of delays in building out and bringing online its new
ITC  while  focusing  its  resources  for  sales  and  marketing  on  the  new
infrastructure.

Liquidity  and  Capital  Resources

At  September  30,  2000.  our  current  ratio  of  current  assets  to  current
liabilities  was  5.99.  This  compares  to  2.62  for  1999. We do not have any
long-term  debt  nor  do  we  plan  to  have  any.

In  the  process of increasing its marketing and sales activities in preparation
for  bringing  the new IT hosting facility on-line, we are evaluating whether to
raise  additional  capital  for data center expansion of the new facility as the
initial  space  comes  online.

We may obtain additional capital upon the exercise of previously-issued warrants
and  outstanding  options  for  common  stock.

Prospective  Information

We  are  undergoing  a significant transition and realizing a major milestone in
its  road to becoming the premier integrated technology service provider (ITSP).
With  the  new  ITC  coming online in the second quarter, and with a significant
demand  in  Houston  for  tier-1  data  center  facilities as well as integrated
technology  services,  we  expect to be able to quickly fill up the initial data
center  space  with  recurring revenue based contracts over the next few months.
While  we  are  reaching  this  milestone,  we  expect  to quickly cash flow the
operation  in  the  third  quarter  and  become  profitable.

Based on our five year plan, and during this process of contractually filling up
its  initial  space,  we  plan  to raise additional capital for expansion of our
facility  at  its  first  ITC and to initiate ITCs number 2 and 3 in a different
parts  of  the country.  While these facilities are coming online, cash flowing,
and  becoming  profitable,  we  will be looking to contract with the appropriate
underwriter  to  put  together a major secondary offering to expand our business
model  nationally  and  internationally.


                          Part II     Other Information

ITEM  2.   CHANGES  IN  SECURITIES

During  the  quarter  ended  September  30,  2000,  we  effected  the  following
transactions  in reliance upon exemptions from registration under the Securities
Act  of  1933  as amended (the "Act") as provided in Section 4(2) thereof.  Each
certificate  issued  for unregistered securities contained a legend stating that
the  securities  have  not  been  registered under the Act and setting forth the
restrictions  on  the  transferability  and  the  sale  of  the  securities.  No
underwriter  participated  in,  nor  did  we  pay any commissions or fees to any
underwriter  in  connection  with  any  of  these  transactions.  None  of  the
transactions  involved  a  public  offering.  We  believe  that  each person had
knowledge and experience in financial and business matters which allowed them to
evaluate  the  merits and risks of our securities.  We believes that each person
was  knowledgeable  about  our  operations  and  financial  condition.


1. 8
<PAGE>
In  August  2000,  we  issued 100,000 Consultant Warrants to purchase restricted
common  stock  at  an  exercise price of $1.50 to Carla Lattinelli as payment in
kind  for services related to assisting with investor relation functions for the
Company.  The  warrants  expire  in August of 2001. This was a private placement
that  was  exempt  from  registration  pursuant  to  Section  4(2)  of  the Act.

In August 2000, we issued 75,000 Warrants to purchase restricted common stock at
an  exercise  price  of  $1.50  per  share  to  Darren-Anthony Lumar for partial
compensation  for  his  services  as  our  Director  of  Investor Relations. The
warrants  expire in August of 2003. This was a private placement that was exempt
from  registration  pursuant  to  Section  4(2)  of  the  Act.


ITEM  6     EXHIBITS  AND  REPORTS  ON  FORM  8-K
     (a)    Exhibits
            The following exhibits are filed with this Quarterly Report or are
            Incorporated herein  by  reference:

            Exhibit Number         Description
               27             Financial  Data  Schedule

     (b)    Reports  on  Form  8-K
            On  January  26, 2000 the Company filed Form 8K reporting the
            completion of its  $3,000,000  financing.

            On  April 18, 2000 the Company filed Form 8K reporting on the
            change in its certifying  accountant.



  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:  November 20,  2000


1. 9
<PAGE>