Sonde Resources: No Cash, No Farm-Out (Tunisia)
Sonde Resources Corp announced today that the North Africa farm-out agreement with Viking Exploration and Production Tunisia Limited (“Viking”) has been terminated.
Under the terms of the Assignment Agreement to Viking dated October 4, 2013 (the “Assignment”), Viking had 21 calendar days (until October 25, 2013) to fund its $40 MM share of the Bank Guarantee called for under the Assignment. At Viking’s request, Joint Oil and Sonde subsequently granted an additional 21 day extension, until November 15, 2013, to complete this funding. Viking was unable to obtain this funding, which was a condition precedent to closing the farm-out.
“Sonde does not believe Viking is likely to gain access to these funds in the near future, and has subsequently terminated the farm-out agreement,” said Sonde in a press release.
Sonde said it would continue to work with Joint Oil and the other parties on finalizing the unitization and unit plan of development for Zarat Field by end of 2013 as requested by the Tunisian Direction Générale de l’Energie. The company said its management believes that the work completed on the Joint Oil Block combined with an approved Plan of Development and ratified Unit Agreement will enhance the marketability and market value of Zarat, and plans to immediately launch a revitalized marketing campaign for the Joint Oil Block seeking either a partner, external funding or both for Zarat development and the Joint Oil Block exploration commitments.
Toufic Nassif, President Sonde North Africa, said “Viking’s failure to close the farm-out agreement is a disappointment, but by no means diminishes our enthusiasm for the significant potential of the Joint Oil Block, or our commitment to the strong partnership we have built with Joint Oil. We will aggressively market this asset over the coming weeks, seeking a deal that recognizes and rewards the value proposition that Sonde shareholders own.”
Sonde Resources Corp. is a Calgary, Alberta, Canada based energy company engaged in the exploration and production of oil and natural gas. Its operations are located in Western Canada and offshore North Africa.
Press Release, November 18, 2013