Sonde Resources Receives Approval for Second Exploration Phase of North American Obligations
Sonde Resources Corp. (AMEX: SOQ) confirms that Joint Oil's Board and General Assembly have approved Sonde to enter the second Exploration Phase extending the exploration work program for the three exploratory wells obligation under the Exploration and Production Sharing Agreement ("EPSA") to December 2015. The Amending Agreement to the EPSA provides for a Second Phase Work Program as follows: -- One Exploratory well must be drilled by the end of each year beginning in 2013 or will be subject to a US $15 million per well penalty; and -- Sonde will acquire 200 sq. km. of 3D seismic in the "B" subcontract area offshore Libya.
The seismic work is an additional obligation, as permitting did not allow the acquisition to take place during our seismic acquisition in 2012. Sonde continues to provide a Corporate Guarantee for the US $46.6 million potential penalty for noncompliance. The Corporate Guarantee declines by US $15 million as each well is drilled and $1.6 million when the 3D seismic is completed. Jack Schanck, President and CEO, said, "Joint Oil has assisted Sonde by recognizing the increased costs and operational challenges in moving the Zarat Field development and exploratory effort forward by extending our obligations into the second phase of the exploration period. We are grateful to Joint Oil and its shareholders to allow us to move forward and develop the Block's potential."
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted in: News