Gulfsands Petroleum Buys Moroccan Licenses from Caithness Petroleum
Gulfsands Petroleum PLC, an oil company with activities in Syria, Tunisia and the U.S., Wednesday announced the acquisition of Cabre Maroc Ltd. from Caithness Petroleum Ltd. group for an extensive portfolio of highly prospective oil and gas exploration licenses and gas exploitation concessions covering an area of 13,352 square kilometers in northern Morocco.
-The total consideration for these transactions will result in cash payments totaling about $19 million by way of purchase consideration, the provision of up to $11.5 million of financial guarantees for the performance of future exploration commitments made to ONHYM, the regulator of Morocco's oil and gas sector (to be refunded immediately upon fulfillment of those commitments), and up to $11 million in funding a portion of Caithness's pro rata share of the cost of exploration activities on two of the permit areas in which Caithness has retained minority participating interests.
-The purchase of Cabre Maroc delivers to Gulfsands a large, contiguous and highly prospective acreage position in an area with proven petroleum systems, revenues from near term production, and multiple drilling targets.
-Completion of the acquisition of Cabre Maroc is anticipated for mid January 2013 following approval of the transaction by Caithness's shareholders.
-The transaction is however not subject to regulatory approval.
-Gulfsands and Caithness Petroleum through their respective wholly owned subsidiaries will become co-venturers with ONHYM in respect of the Fes and Taounate Permits, with Gulfsands the operator of both exploration joint ventures.
Copyright (c) 2013 Dow Jones & Company, Inc.
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