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, 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)

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  January  25,  2001, 13,636,506 shares of common stock, $0.001 par value,
were  outstanding.

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


<PAGE>
                            HYPERDYNAMICS CORPORATION

                                Table of Contents
                                -----------------

Part  I     Financial  Information

Item  1.          Financial  Statements

Consolidated  Balance  Sheet  at  December  31,  2000  (unaudited)

Consolidated Statements of Income for the six months ended December 31, 2000 and
1999  (both  unaudited)

     Consolidated Statements of Cash Flows for the six months ended December 31,
2000  and  1999  (both  unaudited)

     Notes  to  Consolidated  Financial  Statements

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


Part  II          Other  Information

Item  2.     Changes  in  Securities

Item  6.          Exhibits  and  Reports  on  Form  8-K

     (a)     Exhibits

     (b)     Reports  on  Form  8-K

Signatures

<PAGE>
                        PART 1     FINANCIAL INFORMATION

ITEM  1.     Financial  Statements

<TABLE>
<CAPTION>
                            HYPERDYNAMICS CORPORATION
                                AND SUBSIDIARIES
                           Consolidated Balance Sheet
                                December 31, 2000

<S>                                             <C>
ASSETS
Current Assets
  Cash                                          $      535,524
  Certificate of deposit                               436,300
  Accounts receivable, net of allowance for
                 doubtful accounts of $18,068          164,509
  Inventory                                            229,969
Revenue interest                                         7,308
  Note receivable                                      400,000
  Other current assets                                  76,412
                   Total Current Assets              1,850,022
                                                ---------------

Property and Equipment, net of accumulated
depreciation of $77,072                                111,196
Other Assets
Construction in progress                               494,949
Intangible assets - net                                 24,650
Deposits                                                20,632
                                                ---------------
                   TOTAL OTHER ASSETS                  540,231
                                                ---------------
TOTAL ASSETS                                    $    2,501,449
                                                ===============


LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
  Accounts payable - trade                      $      711,185
  Current portion of installment debt                   12,725
  Accrued expenses                                      24,405
  Dividends payable                                     85,405
                   Total Current Liabilities           833,720
                                                ---------------

Long Term Debt                                          64,970

Stockholders' Equity
  Preferred stock, par value $0.001;
  20,000,000 shares authorized; 1,971 shares
  issued and outstanding.                                    2
  Common stock, par value $0.001;
  50,000,000 shares authorized; 13,793,279
  shares issued and outstanding.                        13,794
  Additional paid-in capital                         4,468,685
  Stock subscription receivable                  (       5,000)
  Retained (deficit)                                (2,874,722)
                                                ---------------
          Total Stockholders' Equity                 1,602,759
                                                ---------------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY       $    2,501,449
                                                ===============
</TABLE>
                       See notes to financial statements.


<PAGE>
<TABLE>
<CAPTION>
                                      HYPERDYNAMICS CORPORATION
                                           AND SUBSIDIARIES
                                    Consolidated Income Statements
                        3 Months and 6 Months Ended December 31, 2000 and 1999
                         3 MONTHS ENDED DECEMBER 31     6 MONTHS ENDED DECEMBER 31

                                                 2000          1999          2000           1999
<S>                                          <C>           <C>           <C>            <C>
Revenues                                     $   153,046   $   712,422   $    283,835   $    955,811
Cost of Revenues                                 312,544       444,294        554,230        542,547
                                             ------------  ------------  -------------  -------------
          Gross Margin                          (159,498)      268,128       (270,395)       413,264
Operating Expenses
  Selling                                         15,790        36,901         68,828         41,215
  General and Administrative                     285,780       122,978        538,320        254,164
  Depreciation                                    18,916         6,250         27,256         12,500
                                             ------------  ------------  -------------  -------------
         Total Operating Expenses                320,486       166,129        634,404        307,879
                                             ------------  ------------  -------------  -------------
          Operating Income/(Loss)               (479,984)      101,999       (904,799)       105,385
Other Income (Expense)

  Gain on Sale of Discontinued Operations                    (     568)                       127,065
  Loss from Discontinued Operations                    0             0                    (       568)

  Interest (expense)                          (      693)                 (       693)
  Interest income                                 20,551                       53,134
  Impairment (loss)                             ( 25,057)                   (  21,557)
  Other                                              978            29            978             28
  Net Income/(Loss) Before Income Taxes         (484,205)      101,460       (872,937)       231,910
                                             ------------  ------------  -------------  -------------
Income Tax (Benefit)                                   0             0              0              0
                                             ------------  ------------  -------------  -------------
         Net Income/(Loss)                   $  (484,205)  $   101,460   $   (872,937)  $    231,910
  Preferred dividends                          (  20,027)                    (  56,357)

     Net income (loss) available to common
          Shareholders                          (504,232)  $   101,460       (929,294)

  Net Income/(Loss) per Common Share         $      (.04)  $       .01   $       (.07)  $        .02
                                              13,597,070
Weighted average share outstanding                          12,437,329     13,345,360     12,437,329
</TABLE>

                       See notes to financial statements.

<PAGE>
<TABLE>
<CAPTION>
                                HYPERDYNAMICS CORPORATION
                                     AND SUBSIDIARIES
                           Consolidated Statement of Cash Flows
                        6 Months Ended December 31, 2000 and 1999

                                                                  2000           1999
<S>                                                           <C>            <C>
Cash flows from operating activities
  Net Income/(Loss)                                           $ (  872,937)  $   105,414
Adjustments to reconcile net income to cash provided from
operating activities
  Depreciation and amortization                                     27,256        12,500
  Sale of Discontinued Operations                                                127,633
  Loss from Discontinued Operations                                           (      568)
                                                                    21,557
  Impairment loss
  Decrease in equipment from discontinued operations                              26,468
  Stock and warrants issued for services                           110,375
Net (increase) decrease receivables and other
  Accounts receivable - trade                                      372,683      (219,853)
                    Other                                                      (  23,000)
  Inventory                                                    (     4,322)    (  16,664)
  Other current assets                                              12,485     (  60,164)
  Revenue sharing                                                              (  50,000)
  Deposits                                                                      (111,169)
Net increase (decrease) accruals / payables
  Accounts payable - trade                                         337,162         7,659
  Accrued expenses                                             (    20,051)    (  10,120)
  Accrued taxes                                                                   19,015
        Other                                                                     53,800
          Net cash (used) by operating activities              (    15,792)     (139,049)
                                                              -------------  ------------
Cash flows from investing activities
  Purchase of property and equipment                           (    81,084)            0
  Construction in progress                                      (  494,949)
                                                              -------------  ------------
          Net cash provided (used) for investing activities     (  576,033)            0
Cash flows from financing activities
  Proceeds from new installment note payable                        78,698
  Payments on installment notes payable                        (     1,001)
  Sale of common stock, net of subscription receivable of                         77,500
                         $5,000                                     18,819
  Purchases of common stock                                    (     2,602)            0
          Net cash provided from financing activities               93,914        77,500
                                                              -------------  ------------
Net decrease in cash                                            (  497,911)     ( 61,549)
               Cash at beginning of period                       1,033,435        67,483
                                                              -------------  ------------
           Cash and cash equivalents at end of period         $    535,524   $     5,934
Supplemental Information
Interest paid                                                 $        693   $         0
</TABLE>

                       See notes to financial statements.


<PAGE>
                            HYPERDYNAMICS CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.     The  unaudited  condensed  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 the 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
financial  presentation  of financial position and the results of operations for
the  interim  periods 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  disclosure contained in the audited financial statements for the
most  recent  fiscal year 2000 as reported in the Form 10-KSB have been omitted.

2.     Common  Stock.  During  the  six  months  ended December 31, 2000, 47,638
options  for  free trading shares were exercised for $23,819 and 50,000 warrants
were issued to former consultants of the Company.  The warrants were immediately
exercised  as  a  cashless  exercise,  resulting  in  37,500 shares issued.  The
warrants  were  issued  at $.75 at a time when the market value of the Company's
stock  was  $2.875;  accordingly,  compensation  expense  of  $96,375  has  been
recorded.  Additionally,  16,000  shares  valued  at  $13,500  were  issued  to
employees  and  a  consultant.

3.     Preferred Stock.  During the six months ended December 31, 2000, $589,415
worth  or  589  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  654,813 shares upon these conversions and an additional 18,008 shares to
pay  for  accrued  dividends  on  converted  preferred  stock.

4.     Impairment  loss  is  recognized  on the amounts due from the gain on the
sale  of  Sierra  Net  that  had been effected in the fiscal year ended June 30,
2000.  The  impairment  loss  arises  because the Company will be paid in 29,230
shares  of  MAWI,  the  new  parent  company  of Sierra Net, or in cash upon the
exercise  of  a  put  option  on  behalf of the Company.  MAWI has experienced a
significant  decline  in  value  and  is  currently  trading  at  close to $.25.
Accordingly,  the  Company  has written down the value of the amounts receivable
from  the  sale  of  the revenue interest to $7,308, or the current value of the
shares  that  it  is  expected  to  receive.


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

FORWARD  LOOKING  STATEMENT  AND  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.

General  Discussion

     The  primary  focus  for  the  quarter  was to get transitioned over to the
Company's  new Integrated Technology Center (the "ITC").  Undue delays prevented
to  completion  of  this completion and has slowed the Company's operations to a
much  lower  level  for  the quarter. As of May 2000, the Company had originally
planned  to  have  its  new  ITC online by August.  Delays associated with fiber
routing and installation at the Westwood Technology Center have effectively kept
us  from  turning up our new ITC and bringing on new clients as planned and thus
the  latest  target  date of early December was not met. As of February 16, 2001
the new facility construction and the primary data circuits have been turned up.
The Company has been starting to move into the facility beginning around the 1st
of  February. With focused efforts on the new ITC and the unreasonable delays we
have  experienced  greater  losses  than planned and have not yet benefited from
sales  and  marketing  efforts  targeted  for  our  HypersourceSM  services.


     As  a  result  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 to these
delays,  our  revenues  dropped  more sharply than expected this quarter and are
expected  to  remain sub-par through the end of the current quarter ending March
31,  2001.  Management  expects revenues to rise significantly thereafter with a
much  stronger  base  of  recurring  revenues  based  on  longer term contracts.

     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 in our ITC.  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.
Now that we are in and fully operational at the new Integrated Technology Center
(ITC),  we are working to fill our initial ITC to capacity.  While accomplishing
this  task  by  signing  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 FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 COMPARED TO THE
SIX  MONTHS  ENDED  DECEMBER  31,  1999

     Sales  decreased  to  $ 283,835 for the six months ended December 31, 2000.
This compared to $ 955,811 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 was seriously delayed.

     Cost  of  Revenues increased to $ 554,230 for the six months ended December
31,  2000.  This  compared to $ 542,547 for the same period 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 $
82,374 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 $ 23,000 in obsolete inventory and shrinkage combined.  We
made  a  total adjustment of $ 105,374 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.  We have also started an inventory
serialization  and  tagging procedure together with new security associated with
the  new  ITC  to  enhance  controls.

     For the six months ended December 31, 2000, gross margin decreased to (95)%
compared  to  43% 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 revenues in
preparation  for  the  new  facility  coming  online.

     Selling,  General and Administrative expenses increased to $ 607,148 in the
six months ending December 31, 2000 as compared to $ 295,379 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, again in preparation of now
filling  up  our  new  ITC  with  recurring  revenue  based  contracts.

     Our  net  loss  was ($ 872,937) for the six months ended December 31, 2000.
This  compares to a gain of $ 231,910 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 our new ITC while focusing
its  resources  for  sales  and  marketing  on  the  new  infrastructure.


Liquidity  and  Capital  Resources

     At  December  31,  2000.  our  current  ratio  of current assets to current
liabilities was 2.2.  This compares to a current ration of 6.1 at June 30, 2000.
We have $64,970 of long-term associated with  equipment  leases for the new ITC.

     At  December  31,  2000,  we  had  cash on hand in the amount of $ 535,524.

     In  the  process  of  increasing  our  marketing  and  sales  activities in
preparation  for  bringing  the  new  ITC  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  could  obtain  additional capital upon the exercise, of any,  of outstanding
options  and  warrants  for  common  stock.

Prospective  Information

     We  are undergoing a significant transition and realizing a major milestone
in our  road  to  becoming  the  premier integrated technology service  provider
(ITSP).  With  the  new  ITC now online 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 cash flow the operations in the final quarter
of  FYE  June  30,  2001 and to become profitable during by the first quarter of
fiscal  year  beginning  July  1,  2001.

     Based  on  our  five-year  plan,  and  during this process of contractually
filling  up our initial space, we plan to raise additional capital for expansion
of  our  facility  at  our  first  ITC and to initiate second and third ITC's in
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.


<PAGE>
Part  II          Other  Information

Item  2.     Changes  in  Securities

     The  following transactions were effected by us in reliance upon exemptions
from  registration  under  the  Securities  Act of 1933 as amended under Section
4(2).  We believe that these investors had knowledge and experience in financial
and  business  matters  that allowed them to evaluate the merits and risk of the
receipt  of  these  securities,  and  that  they  were  knowledgeable  about our
operations  and financial condition.  No underwriter participated in, nor did we
pay  any  commissions  or  fees  to  any  underwriter  in  connection  with this
transaction.  This  transaction  did  not  involve  a  public  offerings.  Each
certificate  issued for these 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.

     In  December,  2000  we  issued 37,500 restricted shares of common stock to
Charterbridge  Group  in consideration of a Public Relations services agreement.



Item  6.          Exhibits  and  Reports  on  Form  8-K

     (a)     Exhibits

                    None.

     (b)     Reports  on  Form  8-K

                    None.


                                    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


Dated:  February  20,  2001               By:     /s/  Kent  Watts
                                          --------------------------------------
                                          Kent  Watts, Chairman of the  Board,
                                          Chief  Executive  Officer,
                                          and  Chief  Accounting  Officer

<PAGE>