Markets

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

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 Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


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

Other Topics

Commodities

Latest Markets Videos

    MTNewswires

    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More