Sonde Resources agrees with Joint Oil to extend drilling of Fisal-1

theflyonthewall.com

Sonde Resources announced that it has reached an agreement with Joint Oil to extend the drilling of the first exploration well Fisal-1 from December to November 2014. The agreement requires Sonde to deliver to Joint Oil a confirmed standby letter of credit in the amount of $15M 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 $15M 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 $45M corporate guarantee by $15M, for a new total of $30M.

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