Sonde Resources Corp. has reached an agreement with Joint Oil to extend the drilling of the first exploration well, Fisal-1, required under the Exploration and Production Agreement as amended, from December 2013 to November 2014. The 768,000 acre Joint Oil Block lies offshore crossing the maritime border of Tunisia and Libya.
The Agreement requires Sonde to deliver to Joint Oil a Confirmed Standby Letter of Credit (“Letter of Credit”) in the amount of US$15 million by no later than January 10, 2014.
The Agreement will allow Sonde to use these restricted funds to meet its payables in respect of the Fisal-1 Well if it is drilled by November 2014. If Sonde does not drill the Fisal-1 Well on or before November 30, 2014, Joint Oil shall have the right to draw the US$15 million under the Letter of Credit as payment of the penalty under the EPSA.
Once the Letter of Credit is delivered, Joint Oil will reduce Sonde’s existing US$45 million Corporate Guarantee by US$15 million, for a new total of US$30 million.
Toufic Nassif, President Sonde North Africa, said, “Sonde is appreciative of the Joint Oil Board and General Assembly for this arrangement which we believe is in the best interest of the parties and we look forward to working with Joint Oil Management to drill the Fisal-1 Well in 2014 in pursuit of unlocking the exploration potential of the Joint Oil Block.”
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, December 27, 2013