Sonde Resources farms out 66% of joint oil block interest

theflyonthewall.com

Sonde Resources has farmed out 66.67% of its interest in the Joint Oil Block to Viking Energy North Africa Limited, a private company. Viking will pay Sonde in total a $3M 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; Sonde will receive 20% of the cost recovery and profit share revenue until Sonde recovers $70M. 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.

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