Sonde Resources Corp. Announces Agreement with Joint Oil to Extend the Drilling of First Exploration Well (Fisal-1) to Novemb...
21 December 2013 - 9:27AM
Marketwired
Sonde Resources Corp. Announces Agreement with Joint Oil to Extend
the Drilling of First Exploration Well (Fisal-1) to November 2014
CALGARY, ALBERTA--(Marketwired - Dec 20, 2013) - Sonde Resources
Corp. (TSX:SOQ)(NYSEMKT:SOQ) ("Sonde") announced today that it 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 (the "EPSA"), from December 2013 to
November 2014 (the "Agreement").
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. See Sonde's website at
www.sonderesources.com to review further detail on Sonde's
operations.
Sonde Resources Corp.Rene BeaumierChief Financial Officer(403)
503-7931(403) 216-2374www.sonderesources.com
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