United  States
                       Securities  and  Exchange  Commission
                              Washington,  DC  20549

                                   FORM  10-Q

[X]  Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act  of  1934:  For  the  quarterly  period  ended:  December  31,  2005

                                       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:      001-32490

                           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.)

                           One Sugar Creek Blvd., #125
                             Sugar Land, Texas 77478

          (Address  of  principal  executive  offices,  including  zip  code)

                                  713-353-9400
           (registrant's  principal  executive  office  telephone  number)

                           9700 Bissonnet, Suite 1700
                              Houston, Texas 77036
                                (former address)


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  [  ]

Indicate  by  check mark whether the registrant is a large accelerated filer, an
accelerated  filer,  or a non-accelerated filer.  See definition of "accelerated
filer  and  large  accelerated  filer"  in  Rule  12b-2  of  the  Exchange  Act.

Large  Accelerated  Filer   | |
Accelerated  Filer          | |
Non-Accelerated  Filer      |X|

Indicate  by check mark whether the registrant is a shell company (as defined in
Rule  12b-2  of  the  Exchange  Act)   YES   | |      NO  |X|

                      APPLICABLE ONLY TO CORPORATE ISSUERS

As  of  February 10, 2006,  43,424,577 shares of common stock, $0.001 par value,
were outstanding.

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

                                       1

<PAGE>

<TABLE>
                               Table of Contents
<CAPTION>

<S>                                                                      <C>

                          Part I Financial Information

    Item 1     Financial Statements                                      3

      Consolidated Balance Sheets at December 31, 2005
         and June 30, 2005 (Unaudited)                                   3

      Consolidated Statements of Operations for the three
         and six months ended December 31, 2005 and 2004 (Unaudited)     4

      Consolidated Statements of Cash Flows for the six
         months ended December 31, 2005 and 2004 (Unaudited)             5

      Notes to Consolidated Financial Statements                         6


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


    Item 3     Quantitative and Qualitative Disclosures
               About Market Risk                                        14


    Item 4     Controls and Procedures                                  14

                           Part II Other Information

    Item 2     Unregistered Sales of Equity Securities
                 and Use of Proceeds                                    14

    Item 6     Exhibits                                                 14

  Signatures                                                            15

</TABLE>

                                       2

<PAGE>

Part I     Financial Information
    Item 1     Financial Statements

<TABLE>

                           HYPERDYNAMICS CORPORATION
                          Consolidated Balance Sheets
<CAPTION>
                                                                          December 31,      June 30,
                                                                               2005           2005
                                                                          -------------  -------------
                                                                           (Unaudited)
<S>                                                                       <C>            <C>
ASSETS
Current Assets
    Cash                                                                  $    399,049   $    259,448
    Restricted certificate of deposit                                                -         65,445
    Accounts receivable, net of allowance for doubtful accounts
    of $31,242 for both periods                                                 13,426         19,635
    Inventory                                                                        -          3,637
    Prepaid Expenses                                                            99,427        167,250
                                                                          -------------  -------------

Total Current Assets                                                           511,902        515,415

Property and equipment, net of accumulated depreciation of $400,313
and $314,171                                                                   545,431        599,092
Other assets
Unproved oil and gas properties, using full cost method of accounting        4,145,980      4,072,503
Deposits                                                                         2,680         22,312
                                                                          -------------  -------------
Total other assets                                                           4,694,091      4,693,907
                                                                          -------------  -------------
    TOTAL ASSETS                                                             5,205,993      5,209,322
                                                                          =============  =============


LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of installment notes payable                              $     96,079   $    247,750
Current portion of convertible notes
   payable, net of discount of $1,016,284                                      390,863              -
Accounts payable and accrued expenses                                          810,699        558,314
Accounts payable seismic data                                                  650,000        650,000
Deferred gain                                                                  463,012         73,464
Dividends payable                                                              372,398        372,398
Dividends payable to related party                                              81,751         27,250
                                                                          -------------  -------------

Total Current Liabilities                                                    2,864,802      1,929,176

Long term portion of
 convertible notes payable, net of discount of $546,136                              -              -
Deferred rent                                                                        -        134,697
                                                                          -------------  -------------

     TOTAL LIABILITIES                                                       2,864,802      2,063,873
                                                                          -------------  -------------

Commitments and contingencies
Stockholders' equity
Preferred stock, par value $0.001; 20,000,000 shares authorized
    Series A - 1,945 shares issued and outstanding                                   2              2
    Series B - 2,725 shares issued and outstanding                                   3              3
Common stock, $.001 par value, 250,000,000 shares authorized,
    42,409,761 and 42,168,410 shares issued and outstanding, respectively       42,410         42,168
    Additional paid-in capital                                              25,085,081     22,915,690
    Accumulated deficit                                                    (22,786,305)   (19,812,414)
                                                                          -------------  -------------

Total stockholders' equity                                                   2,341,191      3,145,449
                                                                          =============  =============

    Total Liabilities and Stockholders' Equity                               5,205,993      5,209,322
                                                                          =============  =============
</TABLE>

                                       3
<PAGE>

<TABLE>

                           HYPERDYNAMICS CORPORATION
                      Consolidated Statements of Operations
                     Three and Six Months Ended December 31, 2005 and 2004
                                  (Unaudited)
<CAPTION>

                                                  Three Months Ended December 31, Six Months Ended December 31,
                                                         2005           2004           2005           2004
                                                    -------------  -------------  -------------  -------------
<S>                                                 <C>            <C>            <C>            <C>
Revenues                                                107,408         54,535        194,818        120,691

Operating Expenses
  Cost of revenues                                      579,914        220,593      1,273,407        416,178
  Selling                                                     -          9,467            199         37,350
  General and administration                            864,771      1,056,827      1,606,008      1,828,435
  Depreciation and amortization                          35,475         19,370         72,142         56,225
                                                   -------------  -------------  -------------  -------------

Total Operating Expenses                              1,480,160      1,306,257      2,951,756      2,338,188
                                                   -------------  -------------  -------------  -------------

    LOSS FROM OPERATIONS                             (1,372,752)    (1,251,722)    (2,756,938)    (2,217,497)

Other Income (Expense)
  Interest income                                         1,467          6,120          2,450         12,782
  Interest expense                                     (105,876)      (230,593)      (164,904)      (291,156)
                                                   -------------  -------------  -------------  -------------

NET LOSS                                             (1,477,161)    (1,476,195)    (2,919,392)    (2,495,871)
Preferred dividend requirement                          (27,250)       (27,250)       (54,500)       (73,945)
                                                   -------------  -------------  -------------  -------------

Net loss chargeable to common shareholders           (1,504,411)    (1,503,445)    (2,973,892)    (2,569,816)
                                                   =============  =============  =============  =============

Basic and diluted loss per common share                   (0.04)         (0.04)         (0.07)         (0.06)
Weighted average shares outstanding                  42,212,977     41,445,703     42,190,694     41,327,995

</TABLE>

                                       4
<PAGE>

<TABLE>
                           HYPERDYNAMICS CORPORATION
                     Consolidated Statements of Cash Flows
                        Six Months Ended December 31, 2005 and 2004
<CAPTION>

                                                                                    Six Months
                                                                               Ended December 31,
                                                                               2005           2004
                                                                          -------------  -------------
<S>                                                                        <C>            <C>
Cash flows from operating activities
  Net loss                                                                  (2,919,392)    (2,495,871)
Adjustments to reconcile net loss to cash used by operating activities
  Depreciation and amortization                                                 72,142         56,225
  Options and warrants expense                                                 576,873         19,412
  Stock issued for services                                                     55,900        965,119
  Deferred rent                                                               (134,696)         4,788
  Loss on retirement of mandatorily redeemable preferred stock                       -         76,847
  Accretion of interest and amortization of offering costs of mandatorily
     redeemable preferred stock                                                      -        209,250
  Bad debt expense                                                                   -          3,694
  Amortization of discount                                                      51,917              -
  Changes in:
    Accounts receivable                                                          6,209        (19,564)
    Inventory                                                                    3,637        (42,464)
    Other current assets                                                        67,822         71,172
    Deposits from customers                                                          -         (3,264)
    Accounts payable and accrued expenses                                      247,176        123,720
                                                                          -------------  -------------
Net cash used in operating activities                                       (1,972,412)    (1,030,936)
                                                                          -------------  -------------

Cash flows from investing activities
  Decrease in restricted cash                                                   65,445        129,750
  Investment in unproved property                                             (343,730)      (560,359)
  Purchase of equipment                                                        (32,480)      (105,879)
  Proceeds from disposal of assets                                                   -          8,600
  Refunds of deposits                                                           19,632            500
                                                                          -------------  -------------

Net cash provided by (used in) investing activities                           (291,133)      (527,388)
                                                                          -------------  -------------

Cash flows from financing activities
  Proceeds from sale of common stock and warrants,
      net of $0 and $0 offering cost, respectively                              25,000        148,127
  Proceeds from installment notes payable                                       49,858          7,201
  Proceeds from convertible notes payable, net                               1,980,872              -
  Proceeds of sale on working interest, net                                    726,000              -
  Payments on convertible notes payable                                       (186,717)             -
  Payments on installment debt                                                (191,867)       (91,184)

                                                                          -------------  -------------
Net cash provided by financing activities                                    2,403,146         64,144
                                                                          -------------  -------------

Net increase (decrease) in cash                                                139,601     (1,494,180)
Cash at beginning of period                                                    259,448      3,149,441
                                                                          -------------  -------------

Cash at end of period                                                          399,049      1,655,261
                                                                          =============  =============

Supplemental Information:
                                                                          Six Months Ended December 31,
                                                                          ----------------------------
                                                                               2005           2004
                                                                          -------------  -------------
Cash paid for interest                                                    $    108,963   $          -

Cash paid for income taxes                                                $          -   $          -

Non-cash transactions
Geological and geophysical work performed on unproved oil
 and gas properties paid with equity-based compensation                   $     52,200   $    237,988
Series B preferred shareholder quarterly dividends                              54,500         73,945
Discount related to convertible debt                                         1,614,337              -
Common stock issued to retire mandatorily redeemable preferred stock
 in subsidiary                                                                       -        684,426
</TABLE>

                                       5
<PAGE>

                            HYPERDYNAMICS  CORPORATION
                          NOTES TO CONSOLIDATED FINANCIAL  STATEMENTS
                                   (Unaudited)

1.   Basis  of  Presentation

     The  unaudited  consolidated  financial  statements  of  Hyperdynamics
     Corporation  ("Hyperdynamics")  have  been  prepared  in  accordance  with
     accounting principles generally accepted in the United States 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 Hyperdynamics' 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 2005 as reported in the Form 10-KSB, have been omitted.


2.   Installment Notes  Payable

     Hyperdynamics'  installment  notes  payable  are  related  to  insurance
     financing.  The  insurance  financing  provides  for  our  general  and
     professional  liability  ,  D&O  insurance, workers compensation insurance,
     property & equipment and auto insurance.

3.   Convertible Notes payable

Convertible  Note  Payable

     In  August  2005,  Hyperdynamics  closed  a  private  financing convertible
     note  payable  with  Dutchess  Private Equities Fund II, LP (Dutchess). The
     proceeds  from  the  transaction  were  received in two tranches. The first
     tranche  of  $1,000,000  was  received at closing and the second tranche of
     $500,000  was received upon the filing of a registration statement with the
     SEC.  The  registration  statement  was filed with the SEC in October 2005.
     Upon  effectiveness  of  the  registration statement, Dutchess may elect to
     receive loan payments in the form of stock at a conversion price based upon
     the prevailing market price of Hyperdynamics's common stock but in no event
     less  than  $1.00  per  share.  In  conjunction  with  the  transaction,
     Hyperdynamics  issued  a  detachable warrant to Duchess to purchase 500,000
     shares  of  common stock at $1.00 per share. The relative fair value of the
     warrants  was $304,631 and the intrinsic value of the conversion feature of
     the  two  tranches  was $354,631. Effective February 9, 2006, Hyperdynamics
     has  the  option  to  enter  into  another  debenture  with Dutchess for an
     additional $1,500,000.

Short  Term  Note  Payable

     In  December  2005,  Hyperdynamics  issued  127,000  shares of stock with a
     market  value  of  $240,030  and a non-interest bearing note to Dutchess in
     exchange  for  $640,000.  Upon  effectiveness  of  the  aforementioned
     registration  statement, Dutchess may elect to receive loan payments in the
     form  of stock at a conversion price based upon the prevailing market price
     of Hyperdynamics's common stock.

<TABLE>

The carrying value of the notes at
December 31, 2005 is as follows:
<CAPTION>
<S>                                           <C>

Face value of notes payable                   $2,140,000
Less: discount related to warrants              (304,631)
      discount related to conversion feature  (1,219,631)
      discount related to financing costs        (90,075)
      principal payments                        (186,717)
Add:  amortization of discount                    51,917
                                              -----------
Carrying value of notes at December 31, 2005  $  390,863
                                              ===========
</TABLE>

                                       6
<PAGE>

4.   Segment  Information

Reportable  segments
--------------------

     Hyperdynamics  has  two  reportable  segments:  SCS Corporation ("SCS") and
     its  Louisiana  operations  ("HYDR").  SCS  is  engaged  in  oil  and  gas
     exploration  activities  offshore  Guinea,  West  Africa.  Additionally, it
     provides  seismic data transcription and management services to support its
     activities and to external customers. The seismic data work is performed in
     the  USA.  HYDR  is  engaged  in  oil  and  gas  exploration and production
     activities  in  Louisiana,  USA;  it  also  provides  oilfield  services to
     external  customers. Hyperdynamics evaluates performance based on profit or
     loss  from  operations.  The  reportable  segments  are managed by separate
     management teams who are evaluated based on their segment's performance.

<TABLE>
The  following  tables summarize certain balance sheet and income statement data
about  Hyperdynamics'  reportable  segments and corporate overhead for the three
and six months ended  December 31,  2005  and  2004:
<CAPTION>
                                                                               SCS            HYDR        Corporate        Total
                                                                          -------------  -------------  -------------  -------------
<S>                                                                       <C>            <C>            <C>
 As of December 31, 2005:
    Segment assets                                                        $  4,212,746   $    596,375   $    396,872   $  5,205,993

Six months ended December 31, 2005
    Revenues from external customers                                                 -        194,818              -        194,818
    Depreciation, depletion and amortization                                    13,720         49,410          9,012         72,142
    Loss from operations                                                      (336,129)    (1,194,961)    (1,225,848)    (2,756,938)
    Expenditures for long-lived assets                                          73,477        350,497          4,436        428,410
Three months ended December 31, 2005
    Revenues from external customers                                                 -        107,408              -        107,408
    Depreciation, depletion and amortization                                     6,860         25,015          3,600         35,475
    Loss from operations                                                      (175,624)      (507,617)      (689,511)    (1,372,752)
    Expenditures for long-lived assets                                          44,213         55,761            424        100,398

As of December 31, 2004:
    Segment assets                                                           3,947,182        764,383      1,753,817      6,465,382

Six months ended December 31, 2004
    Revenues from external customers                                             3,140        117,251            300        120,691
    Depreciation, depletion and amortization                                    14,028         32,974          9,223         56,225
    Loss from operations                                                      (317,514)      (422,314)    (1,477,669)    (2,217,497)
    Expenditures for long-lived assets                                         712,388        184,650          3,564        900,602
Three months ended December 31, 2004
    Revenues from external customers                                             2,840         51,695              0         54,535
    Depreciation, depletion and amortization                                     5,632          9,293          4,445         19,370
    Loss from operations                                                      (133,207)      (266,889)      (851,626)    (1,251,722)
    Expenditures for long-lived assets                                         704,697        167,194              0        871,891

Product and services information
--------------------------------

                                                                           Quarter Ended December 31,  Six Months Ended December 31,
                                                                               2005           2004           2005           2004
                                                                          -------------  -------------  -------------  -------------
Revenues from:
     Seismic data management                                              $          -   $      2,840   $          -   $      3,140
     Computer-related sales                                                          -              -                           300
     Oilfield services                                                               -         51,695                       117,251
     Oil and gas production                                                    107,408              -        194,818
                                                                          -------------  -------------  -------------  -------------
Totals                                                                    $    107,408   $     54,535   $    194,818   $    120,691
                                                                          =============  =============  =============  =============
</TABLE>

                                       7
<PAGE>

     CAUTIONARY  STATEMENT  ON  FORWARD-LOOKING INFORMATION

     We  are 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 us, or on our
behalf.  This  prospectus  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. Our
expectations, beliefs and projections are expressed in good faith and we believe
them  to  have  a  reasonable basis, including without limitations, management's
examination  of  historical  operating trends, data contained in our 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 our view, could cause
actual  results to differ materially from those discussed in the forward-looking
statements:  our  ability  to  respond  to  changes  in  the  information system
environment,  competition, the availability of financing, if available, on terms
and  conditions  acceptable  to  us,  and  the  availability of personnel in the
future.  We  have  no  obligations  to  update  or  revise these forward-looking
statements to reflect future events.

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

     Hyperdynamics has two reportable segments: Our operations in Guinea and our
Louisiana  operations  ("HYDR").  SCS  is  engaged  in  oil  and gas exploration
activities pertaining to offshore Guinea, West Africa. Additionally, it provides
seismic data transcription and management services to support its activities and
to  external  customers.  The seismic data work is performed in the USA. HYDR is
engaged  in oil and gas exploration and production activities in Louisiana, USA.
HYDR also provides some oilfield services to external customers.

     During  the  quarter  ended  December  31,  2005,  we continued the work we
started in August of 2005. We maintained our intense focus to rectify our issues
with  the Republic of Guinea, West Africa so that we could continue our plans to
drill  exploration  wells  offshore  Guinea,  make  discoveries, and begin major
production  operations.  During  the  quarter,  based on months of effort by our
Chief  Executive  and  our Vice President for Guinea Affairs, including trips to
Guinea,  numerous  meetings with government officials, and consistent in-country
efforts  of  our new subsidiary, SCS Guinea SARL, the government of Guinea began
to communicate with us on a very positive basis. The Guinea government explained
to  us that they want to continue working with us and they desired to develop an
open  and transparent business relationship going forward. This resulted next in
an  invitation  from  the  Prime Minister for our Chief Executive, Kent Watts to
join  our  VP  of  Guinea  Affairs,  Mr.  Famourou Kourouma and hold a series of
meetings  held  in  January 2006. The two executives met with the Head of State,
President  Lansana  Cont  .  During  our  meeting  with  him, he arranged for an
immediate  meeting  with  the Minister of the Mines and of the Geology, Minister
Ahmed Tidiane Souar . The President further stated that we were his guests there
in Guinea and he wanted action taken on our case. The two executives had several
meetings  with  Minister  Souar  .  We explained that we could continue our work
under  the 2002 Production and Sharing Agreement. It was suggested and we agreed
that  a  better  approach  would  be  to  execute  a new 2006 Production Sharing
Agreement,  so we began working on it while, at the same time, we maintained the
assertion  of  our  rights  under  the  2002  Agreement. Based on the Minister's
desires  to  move  forward we brought our Executive Vice President, Harry Briers
and  Robert  Bearnth, the Vice President and Chief Geologist for SCS Corporation
to  Guinea  for  a  technical  review. Dr. Bangoura and Mr. Diallo headed up the
technical  team  for  the  government and we had two lengthy meetings with them,
updating  them  on  our  work since we began in 2002. It was discovered that Mr.
Diallo  had  been  on  the platform of the offshore well drilled in 1977. We had
plenty  of discussion surrounding our evaluation of the well logs from that well
and  explained  the significance of it to our work. In short, the technical team
gave us a very positive review. We continue to work to finalize a new agreement.
In  the meantime, we have met with the US Ambassador to Guinea, Jackson McDonald
and have brought him up to date on our work and meetings with the government. He
expressed a strong willingness to help us succeed in Guinea.

     During the quarter HYDR also completed an installation of its gas gathering
system  on  its  Norris  and Kelly leases located in Jena, Louisiana. There have
been  numerous  unanticipated  problems in putting our production on line and we
are currently still working on connecting our wells, separating the oil from the
gas,  and  getting to a point where we can maintain a steady flow of production.
Based  on the problems we have incurred, the President, Sam Spears, Jr. resigned
and  we  readily  accepted  his resignation. We have been working to rectify all
production  issues  since. Mr. Jeremy Driver has taken over as the President for
HYD  Resources  Corporation. In December, the company completed its payments for
its  operations  center  in Jena and has received the title to the property. Mr.
Driver  has  been very active in reducing operational costs with a primary focus
towards  maximizing  production from the producing properties we currently have.
Once  we  get to the point of determining the optimum production levels from our
production  facilities  installed, we will then reevaluate our drilling programs
going  forward in light of our need to hire new professionals. We anticipate the
search  and hiring of a professional drilling and production manager to continue
our growth of production from low volume, low cost wells in proven zones.

     Hyperdynamics  evaluates  performance  based  on  profit  or  loss  from
operations. The reportable segments are managed by separate management teams who
are evaluated based on their segment's performance.

                                       8
<PAGE>

     During  the  quarter  we  realized  increasing  oil  production revenues of
$107,408 for the quarter ended December 2005 with $0 service revenue compared to
$0  oil  production  revenue  for the quarter ended December 2004 and $54,535 in
service  revenue. Thus, revenues are not directly comparable as the focus of the
company  over  the last year has shifted towards building production revenue and
away  from service revenue. The increase in cost of revenue for December 2005 is
primarily  attributed  to  an  increase in cost of maintaining and repairing our
production  facilities  in  preparation  for  bringing newly anticipated oil and
natural  gas  production  online. Cost of revenues increased to $579,914 for the
three  months  ended  December 2005 compared to $220,593 for December 2004. This
was  an  increase  of $359,321 or 163%. General and administrative expenses were
$864,771 during the three months ended December 31, 2005, a decrease of $192,056
from  $1,056,827  recorded  in  the  three  months  ended December 31, 2004. The
decrease  is  primarily  due  to  the  settlement  of  a dispute with our former
landlord  which  resulted  in  a  reduction in deferred rent and a corresponding
reduction  in rent expense of $128,000 and a payroll tax refund of approximately
$46,000.

<TABLE>
<CAPTION>
                                                                               SCS            HYDR        Corporate        Total
                                                                          -------------  -------------  -------------  -------------
<S>                                                                       <C>            <C>            <C>            <C>
 As of December 31, 2005:
    Segment assets                                                        $  4,212,746   $    596,375   $    396,872   $  5,205,993

Six months ended December 31, 2005
    Revenues from external customers                                                 -        194,818              -        194,818
    Depreciation, depletion and amortization                                    13,720         49,410          9,012         72,142
    Loss from operations                                                      (336,129)    (1,194,960)    (1,225,848)    (2,756,937)
    Expenditures for long-lived assets                                          73,477        350,497          4,436        428,410
Three months ended December 31, 2005
    Revenues from external customers                                                 -        107,408              -        107,408
    Depreciation, depletion and amortization                                     6,860         25,015          3,600         35,475
    Loss from operations                                                      (175,624)      (507,617)      (689,511)    (1,372,752)
    Expenditures for long-lived assets                                          44,213         55,761            424        100,398

As of December 31, 2004:
    Segment assets                                                           3,947,182        764,383      1,753,817      6,465,382

Six months ended December 31, 2004
    Revenues from external customers                                             3,140        117,251            300        120,691
    Depreciation, depletion and amortization                                    14,027         32,974          9,223         56,224
    Loss from operations                                                      (317,514)      (422,314)    (1,477,669)    (2,217,497)
    Expenditures for long-lived assets                                         712,388        184,650         3,564         900,602
Three months ended December 31, 2004
    Revenues from external customers                                             2,840         51,695              0         54,535
    Depreciation, depletion and amortization                                     5,632          9,293          4,445         19,370
    Loss from operations                                                      (133,207)      (266,889)      (851,626)    (1,251,722)
    Expenditures for long-lived assets                                         704,697        167,194              0        871,891

Product and services information
--------------------------------

                                                                           Quarter Ended December 31,  Six Months Ended December 31,
                                                                               2005           2004          2005           2004
                                                                          -------------  -------------  -------------  -------------
Revenues from:
     Seismic data management                                              $          -   $      2,840   $          -   $      3,140
     Computer-related sales                                                          -              -                           300
     Oilfield services                                                               -         51,695                       117,251
     Oil and gas production                                                    107,408              -        194,818
                                                                          -------------  -------------  -------------  -------------
Totals                                                                    $    107,408   $     54,535   $    194,818   $    120,691
                                                                          =============  =============  =============  =============
</TABLE>
                                       9
<PAGE>

Geographical  Information
------------------------

     All  revenues  are  currently derived from domestic sources. All long-lived
assets  are  located  in  the  USA,  except  for our oil and gas exploration and
exploitation rights, which are located offshore Guinea, West Africa.

Louisiana  Operations  ("HYDR")

     Revenue  for the three months ended December 31, 2005 and 2004 was $107,408
and  $51,695,  respectively, which includes $107,408 from oil production in 2005
and $51,695 of oilfield service revenue in 2004.

     Our  depreciation and amortization for the three months ended December 2005
and December 2004 was $25,015 and $9,293, respectively.

     Our  loss from operations for the three months ended December 31, 2005 from
this  segment  was  ($507,617) in comparison to ($266,889) in December 2004. The
decrease  is primarily due to increased maintenance and repairs costs, tools and
equipment cost, as well as an increase in payroll expenses.

     Our  expenditure  for  long lived assets in the three months ended December
2005  was $55,761 compared to $ 167,194 in December 2004. The decrease is due to
less  capital  improvements  on  gas production facilities and our gas gathering
system.

Guinea  and  Seismic  Data  Management  ("SCS")

     We  had revenues of $0 and $2,840 from this segment during the three months
ended  December  31,  2005  and  2004,  respectively.  The  lack  of revenues is
attributable to the amount of internal seismic data processing work during these
two  periods:  we  have  focused  on  the  acquisition  of  seismic data for our
concession in Guinea.

     We  have  processed a portion of some data that we have the right to market
in order to provide samples of the data to our prospects. When we sell the right
to  use  this  data,  we  will receive a fee and we will also be compensated for
processing the data that we sell.

     Our  depreciation  and  amortization  was  $6,860  and $5,632 for the three
months ended December 31, 2005 and 2004, respectively.

     Based  on  the  factors  discussed  above, our loss from operations for the
three months ended December 2005 from this segment was ($175,624) and ($133,207)
at the end of 2004.

     Expenditures  for long lived assets were $44,213 and $704,697 for the three
months  ended  December  2005  and  December 2004, respectively. The decrease is
primarily due to reduction in consulting services.

Corporate  Overhead

     Revenue  was  $0  for  the  three  months ended December 31, 2005 and 2004,
respectively. We do not actively pursue revenues in this segment.

     Our  depreciation  and  amortization  expense  was comparable at $3,600 and
$4,445 for the three months ended December 31, 2005 and 2004, respectively.


     The  loss from operations attributable to corporate overhead was ($689,511)
and  ($851,626)  for  the  three  months  ended  December  31,  2005  and  2004,
respectively.

     Our  expenditures  for  long lived assets was comparable at $424 and $0 for
the three months ended in December 31, 2005 and 2004, respectively.

Other  Items

Selling,  General  and  Administrative.
---------------------------------------
     Our  selling, general and administrative expenses decreased $192,056 or 18%
in December 2005. selling, general and administrative expenses were $864,771 and
$1,056,827  for  the three months ended December 31, 2005 and December 31, 2004,
respectively. The decrease is due to the settlement of a dispute with our former
landlord  which  resulted  in  a  reduction in deferred rent and a corresponding
reduction  in rent expense of $128,000 and a payroll tax refund of approximately
$46,000.

                                       10
<PAGE>
Interest Expense.
-----------------

     Interest expense decreased by $124,717 or 54% in December 2005. The expense
was  $105,876  and  $230,593  for  the  three months ended December 31, 2005 and
December 31, 2004, respectively.

Net  Loss.
----------

     Based on the factors discussed for each segment, the Net Loss chargeable to
common  shareholders  is  comparable  at  ($1,504,411)  or ($0.04) for the three
months  ended  December  31,  2005  and  $(1,503,445),  or  $(0.04) per share in
December  2004.  The  net  loss  chargeable  to  common  shareholders includes a
provision  for  preferred stock dividends of $27,250 for both three months ended
December  2004  and  2005. The negative results are due to the factors discussed
above.

     Our ratio of current assets to current liabilities (current ratio) was 0.14
to  1 at December 31, 2005 and 0.93 to 1 at December 31, 2004. A deeper analysis
of the current ratio reveals several current obligations that reduce the current
ratio  but  for which there is no requirement to use cash to satisfy them or for
which  the  payment  is deferred until we receive cash inflows sufficient to pay
the  obligation.  These  items  include  Deferred gain, Accounts payable Seismic
Data,  Dividends  payable,  and  Dividends  payable  to related party. While the
company  continues  to  work  toward generating positive cash flow from domestic
operations  altogether, including corporate overhead, it is expecting to
report positive cash flow from its HYDR operations very soon.

     Our financing activities and strategy over the last several months have put
us  in  very  good  condition  to  meet  and  exceed  minimum  requirements  for
exploration  offshore in West Africa. As explained below, we are now prepared to
perform  on  our  most valuable asset offshore Guinea. As discussed hereunder we
expect  our  liquidity  ratios to improve directly from our equity financing and
with  the  success  of putting our drilling operations back online in Guinea, we
expect  to  have plenty of financial partnering opportunities that will allow us
to  far exceed minimum exploration and drilling requirements. This will allow us
to  drill  more  wells faster in quality locations. The more we drill in quality
locations, the more chances we have to realize a viable commercial discovery for
Guinea  and for us. Once we receive our drilling permits as expected, we will be
able  to implement our additional strategy to bring on working interest partners
to  share  in  the risk on some of our more expensive wells to be drilled sooner
rather than later.

     Currently,  in anticipation of receiving our permits to drill in Guinea, we
are  prepared  and our financing is in place to drill at least one well offshore
Guinea.  Partners  that  have  contacted  us with verbal indications of interest
could  provide  the  ability  for us to drill many more wells and at a very fast
pace.

     During  the  quarter  the  company  continued  to  process  its  filing and
responded  to  comments  for  its  S-1  registration  pursuant  to  a  financing
transaction  that  we  entered  into in August 2005. In August 2005, we closed a
private  financing  transaction  with Dutchess Private Equities Fund II, LP. The
financing  included a subscription for a $1,500,000, two (2) year debenture that
was  funded  $1,000,000  upon  closing  and  $500,000  upon  the  filing  of  a
registration  statement. Now with the registration statement effective, Dutchess
may  elect  to convert the payments coming due on the debenture at a stock price
determined  as the fixed floor conversion price of $1 per share adjusted down to
$.90 per share as a result of a penalty.

     To  help  the  company  bridge  its  need for capital, while waiting on the
process  of its registration to complete, in December 2005, the Company borrowed
$640,000 from Dutchess as a short term loan. Additionally during the quarter and
subsequent to the quarter, as it has been able to do in past periods, funds have
been  raised  by  the  exercise  of  outstanding warrants and options by various
shareholders.  More  details  of  these  funds  can  be  found  below in ITEM 2.
Unregistered Sales of Equity Securities and Use of Proceeds.

     After  responding  to  a  series  of  comments on the initial filing of the
company's  S-1 filing, it became necessary in order to be compliant with certain
rules for the company to withdraw its S-1 filed in November and re-file it on
January 12, 2006, with amended financing contracts that comply more clearly with
the  rules  of  such  financings.  Once  SEC  comments were received the company
immediately  responded  and  filed  yet  another  S-1/A on February 6, 2006. The
company was then notified that the SEC had no more comments and the registration
statement  became effective on February 9, 2006. This puts critical financing in
place  necessary  for the company to meet its business objectives with regard to
oil  and  gas exploration and to help it better manage its liquidity and improve
its financial position.

                                       11
<PAGE>

     As  part  of  the S-1 that became effective on February 9, 2006, we have an
investment  agreement in place and have a commitment from Dutchess to fund up to
$20,000,000  in  equity at 95% of the market price of our common stock. The puts
against  the  equity  line  are  made at the company's discretion. The agreement
limits  the number of shares to be registered and to be used for the equity line
under  the  financing  agreement to 6,400,000 shares. Coupled with the 2,000,000
shares  registered for conversion of the aforementioned debenture and associated
warrant,  this  limits  the entire stock issuance to a total of 8,400,000 shares
unless  a shareholder vote is held to approve more shares. This insures that the
number  of  shares  to  be  issued will not exceed 20% of the outstanding common
stock  as  is  required  by the rules of the American Stock Exchange. The amount
ultimately  raised  by  the  financing will be determined by the stock price and
trading  volumes  at  each  point in time the equity line is used. Additionally,
management  believes that the better the company performs, the easier it will be
for  the  company to access this capital and at the same time minimize any share
issuance.

     During  February  2006, investors exercised warrants to purchase restricted
shares of common stock for gross proceeds of approximately $400,000. On February
9, 2005, Dutchess exercised a warrant to purchase 500,000 shares of common stock
for  gross  proceeds  of $450,000. As a result, the company's liquidity and cash
position  is  increasingly positive and with its financing in place we are ready
to continue to perform the work required of us.

     At this point it is our understanding that we will be operating under a new
agreement  with  Guinea.  Such  agreement  will dictate requirements for capital
which  we  believe  we will be able to easily meet. Should the Guinea government
change  its  mind  and want us to proceed under the 2002 PSA, we are prepared to
ramp  back  up under the 2nd exploration phase under that agreement and after an
adjustment  to  required  time  frames  due to delays associated with a case for
Force  Majure  under  that contract, we will expect that we will be able to meet
the  obligation  of  the  second exploration phase estimated to be approximately
$10,000,000 to drill one exploration well.

     So,  with  our financing established, management is highly confident in our
ability  to  proceed  and  perform  under  either  scenario. Also, under the old
agreement,  the second exploration period expires sometime during the later part
of  this  decade depending on initial periods and extension provisions. Although
we  have  several  years  to  complete this work, we wish to initiate a drilling
program  as soon as possible. Thus, we are considering all of our options or any
combination  of these options to: a) increase revenues from operations; b) raise
additional capital to support at least the minimum required drilling program; c)
negotiate  one  or  more transactions with oil company partners who share in the
required  work  and  financing risk; and d) negotiate work program related deals
with oil industry vendors such as seismic acquisition companies. We believe that
our ability to manage and affect one or more of these options will determine our
significant current ratio and financial position in the future.

     Our  cash  from  operations was a deficit this last year based on our asset
appreciation  based plan. We have taken overhead reduction steps to minimize non
productive expenditures. We are spending the bulk of the capital raised directly
or  indirectly  on  enhancing  the value of our offshore oil and gas concession.
These  expenditures, however, do not improve cash flow from operations. In order
to  improve our operating cash flow situation for future periods, management has
budgeted  certain  amounts of capital and has started to build up our production
revenues for HYDR.

     Because  our subsidiary, SCS Corporation ("SCS") is looking to increase its
exploration  activities,  we  are  beginning  to look at more than one option to
raise  additional  funds.  Management  is  confident  in  its  ability  to raise
additional  capital  under  more  conventional financing structures, but we also
believe  that  ultimately we will be able to secure oil and gas working interest
partners  to  fund  and  carry  significant  portions  of the capital investment
burden.  As  we have discussed in the press, we are formulating plans and moving
forward  towards  drilling  our  first exploration well offshore West Africa. We
feel  that  we  can  successfully  finance  such a work program either ourselves
through  an  equity  financing  plan,  through  working  interest partners, or a
combination of both.

                                       12
<PAGE>

     We  have been successful in raising our necessary capital and management is
very  confident  in  our  ability  to  continue  to  raise capital. Based on our
relatively  low  overhead  in  comparison  to the rather large task at hand, the
lion's share of all capital raised is going to improve our drilling prospects.

     We  expect  to  exploit  our  leases in Louisiana by operating numerous low
volume  wells  that  produce 20 barrels a day or less. We believe the relatively
high price of oil will help make these wells more economically viable.

     Because  of the geological features of this lease and our oil production to
date,  we  considered  HYDR's production plans as an attractive prospect for oil
and  gas  investors.  Therefore,  we made the decision in April of 2005 to begin
selling  working  interest units in our Norris and Kelly leases. We sold a total
of 35% of our working interest. Recently, management decided to make an offer to
the  non-operator working interest owners to buy back their working interest for
stock.  We  were willing to take the risk on the production coming in later than
not  at all and so we offered to buy back all of the working interest we sold by
issuing stock. If the working interest non-operators agree on the buy-back, this
should  enhance  our  production  revenues and cash position at some time in the
future as well.

     Thus,  management believes that we have a very good vehicle in place now to
timely  raise  additional  capital  as  needed.  This  capital  will continue to
substantially  enhance  our asset value in our oil and gas concession. This will
yield  greatly enhanced shareholder value, and make additional capital easier to
come by at ever increasing stock prices.

     We  have a contingent $350,000 note payable that is payable with 25% of the
profits  of SCS Corporation. We have the right to pay this note off using common
stock.

     Additionally,  in  conjunction  with  our  purchase of HYD, we entered into
three  notes  payable  to two individuals totaling $856,000. The notes are to be
paid  quarterly  over  the  five years ended June 30, 2009. Payments will be due
only  if  HYD  has net  income  according to accounting principles generally
accepted  in the United States of America. Payment amount will be 25% of the net
income  for  the  period,  unless there was a net loss in previous period(s). If
there  is  a  net  loss, subsequent net income must completely offset the losses
before  any  amounts  are  due.  After the loss is offset, payment of 25% of the
remaining net income will be due.

     In January 2006 we entered into a new lease for office space with a term of
five  years.  The  new lease will become effective upon the completion of tenant
improvements  specified  in  the  lease  agreement.  This  lease  will  cost  us
approximately  $16,000  per  month less in rent and approximately another $5,000
less  in electricity. Currently we are in temporary space that is being provided
by  our  landlord at no cost to the Company while our new space is being readied
for occupancy. Once the new lease begins, the base monthly rent is $0 for months
1-6,  and  we have paid three months of rent in advance so once we move into the
new  space we will not be required to pay rent for nine months. We have put up a
$75,000  Letter  of Credit to secure our build-out costs. We will get this money
back after 18 months.


Off-Balance  Sheet  Arrangements

    We  have  a  contractual  arrangement  and  now  a  lawsuit  against  USOil
Corporation.  The  original agreements provide for us to pay USOil $1,600,000 if
SCS  obtains  third  party  financing  for  the Guinea development project. Also
USOil  will  receive a 3% royalty if oil and gas is produced on this project and
depending  on  the  outcome  of  our  legal  claims against them. We also have a
contingent $350,000 note payable that is only payable with 25% of the profits of
SCS  Corporation.  We have the right to pay this note off using common stock. In
conjunction  with  our  purchase  of HYD Resources Corporation in April 2004, we
have three contingent obligations to pay $856,000. These obligations are payable
over  the five years ending in April 2009 and they are payable only in the event
that HYD Resources is profitable and has paid back all of its accumulated losses
first.  The  determination of net income will be made quarterly and the pay down
of the obligations is 25% of the net income per quarter. We do not plan on using
significant  debt  financing  except  for  the  possibility  of  financing
income-producing  assets  in  the  future.

                                       13
<PAGE>

Item  3.     Quantitative  and  Qualitative  Disclosures  About  Market  Risk

     Our  functional  currency is the US dollar. Our revenue is directly related
to the price of oil and gas. Assuming that we sell one barrel of oil, then a one
dollar  decrease  in the price that we get for that barrel of oil will lower our
revenue  by  one  dollar,  and  correspondingly  so for a one dollar increase in
price.  The  same  is true for changes in the price of natural gas. We intend to
sell oil and gas immediately upon lifting to the wellhead. We do not contemplate
retaining  any  oil and gas inventory. We do not hedge any market risk. Although
the  prices  of  oil  and gas have recently increased substantially, there is no
assurance  that  the  price  of  oil  and  gas will not fall dramatically in the
future.


Item  4.  Controls  and  Procedures

     Our Chief Executive Officer and Chief Financial Officer have concluded that
our  disclosure controls and procedures are effective. They have evaluated these
controls  and  procedures as of the end of the fiscal quarter ended December 31,
2005.  There  were  no changes in our internal controls that occurred during the
fiscal  quarter  ended  December  31,  2005  that  materially  affected  or  are
reasonably likely to materially effect our control over financial reporting.

                           Part II Other Information


ITEM  2.  Unregistered  Sales  of  Equity  Securities  and  Use  of  Proceeds

We  have  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
believe  that  each  person was knowledgeable about our operations and financial
condition.

In February 2006, Hyperdynamics issued 555,000 shares of restricted common stock
to various individuals who have exercise their options. We received an aggregate
of  $277,500 in exercise proceeds. This was a private placement made in reliance
of Section 4 (2) of the Act.

In  February  2006  Hyperdynamics  issued  30,000  shares  of common stock to  a
consultant  for  services  rendered  under  Hyperdynamics  Employee  Stock  and
Stock  Option  Plan.  This was a private placement made in reliance of Section 4
(2)       of  the  Act.

In  December 2005 Hyperdynamics issued 127,000 shares of restricted common stock
to  Dutchess Private Equities Fund, II L.P. as part of the financing cost on the
Dutchess  Note  12/08/05.  The  financing cost is valued at $240,030. This was a
private placement made in reliance of Section 4 (2) of the Act.

In  November  2005,  Hyperdynamics  issued  24,351  shares  of  restricted
common  stock  to  the  directors  for  services  performed.  The cost is valued
at  $42,000.  This  was a private placement made in reliance of Section 4 (2) of
the  Act.

In  November 2005, Hyperdynamics issued 30,000 shares of restricted common stock
to a consultant for services rendered. The cost is valued at $52,200. This was a
private placement made in reliance of Section 4 (2)of the Act.

Item  6  Exhibits

Exhibit
 Number                             Description
--------  ----------------------------------------------------------------------
31.1  -   Certification  of  Chief  Executive  Officer  of  Hyperdynamics
          Corporation  required  by  Rule  13a-14(1)  or  Rule  15d-14(a) of the
          Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
          the Sarbanes-Oxley Act of 2002.

31.2  -   Certification  of  Chief  Financial  Officer  of  Hyperdynamics
          Corporation  required  by  Rule  13a-14(1)  or  Rule  15d-14(a) of the
          Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
          the Sarbanes-Oxley Act of 2002.

32.1  -   Certification  of  Chief  Executive  Officer  of  Hyperdynamics
          Corporation  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
          and Section 1350 of 18 U.S.C. 63.

32.2  -   Certification  of  Chief  Financial  Officer  of  Hyperdynamics
          Corporation  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
          and Section 1350 of 18 U.S.C. 63.

                                       14
<PAGE>

                                   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)

(signed)By:  /s/  Kent  Watts
             ----------------
             Kent  Watts,  Chairman  of  the  Board,
             Chief  Executive  Officer

Dated:  February  21,  2006


(signed)
        By:  /s/  Steven  M.  Plumb
             ----------------------
             Steven  Plumb,
             Chief  Financial  Officer

Dated:  February  21,  2006

                                       15