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.
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