UPDATE: Sonde Resources Extending Early Gains; Climbs Over 13% After Farming Out 66% of Libyan Project

By Midnight Trader,  December 28, 2012, 12:49:53 PM EDT

Sonde Resources Corp. (SOQ.TO) is up more than 13% at $1.52 a share, climbing as high as $1.58 after announcing a deal to farm out two-thirds of its interest in the Joint Oil Block to privately held Viking Energy North Africa Ltd. in exchange for a $3 million signing bonus and up to $70 million in future revenues.

Viking will assume responsibility for the first three exploration wells, funding 100% of the Joint Oil Block development plan for the Zarat Field - with the first well to be drilled next year along with acquiring seismic data for the Hadaf prospect.

SOQ will receive 20% of the cost recovery and profit share revenue up to $70 million, with additional revenue to be split one-third SOQ and two-thirds Viking after it recoups all of its expenditures.

Sonde also retains the option to fund its 33.33% share of the other two exploration wells with any future discoveries will be shared on the same 1-for-2 basis.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

Referenced Stocks:



Latest News Video

Safety Officials Launch Probe Into Connecticut Train Crash
Safety Officials Launch Probe Into ...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.43 0.07  0.52%
CSCO $ 24.24 0.35  1.48%
MSFT $ 34.87 0.79  2.32%
F $ 15.08 0.44  3.01%
ARUN $ 13.10 4.51  25.61%
SIRI $ 3.50 0.05  1.45%
GE $ 23.46 0.19  0.82%
S $ 7.32 0.04  0.55%