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December 28, 2012
09:34 EDTSOQSonde Resources farms out 66.67% of joint oil block interest
Sonde Resources announces that it has farmed out 66.67% of its interest in the Joint Oil Block to Viking Energy North Africa, a private company. Sonde will receive the following consideration in connection with the farm out: Viking will pay Sonde in total a $3M non-refundable signature bonus; Viking will assume responsibility for the three well exploration commitment under the terms of the EPSA and fund 100% of the Joint Oil Block share of the Unit Plan of Development for the Zarat Field. The first well, Fisal, is to be drilled in 2013 along with the acquisition of seismic data covering the Hadaf prospect; Viking will also provide to Sonde, prior to closing, the appropriate form of corporate guarantee with the agreed upon commercial terms, in order to secure the remaining work commitment under the terms of the EPSA; Sonde will receive 20% of the cost recovery and profit share revenue until Sonde recovers $70M. After payout of all Viking expenditures, the revenue will be split 33.33% to Sonde and 66.67% to Viking; Sonde retains the option to fund its 33.33% share of two of the exploration wells; and Any future discoveries will be shared 33.33% to Sonde and 66.67% to Viking. This farm out is subject to the following conditions precedent: Viking provides Sonde with a Corporate Guarantee sufficient to offset the current $46.6M guarantee for the potential penalties in respect of the three well drilling commitment and seismic and Joint Oil consents to the transfer of the interest to Viking and the naming of Viking as Operator of the Joint Oil Block under the EPSA.
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