Sonde Resources Farms Out 66% of Joint Oil Block Interest; Shares Up 3.8% in Early Trade
Sonde Resources Corp. (SOQ.TO) has farmed out 66.67% of its interest in the Joint Oil Block to Viking Energy North Africa Limited, a private company. Sonde will receive the following consideration in connection with the farm out.
Viking will pay Sonde in total a US $3 million 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 US $70 million. 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.
SOQ is now trading at $1.39.
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