Gulfsands Petroleum announced Thursday that it has completed a $19 million acquisition of Cabre Maroc from its previous owner Caithness Petroleum.
Cabre Maroc is the operator of an extensive portfolio of highly prospective oil and gas exploration licences and gas exploitation concessions covering an area of approximately 5,100 square miles in northern Morocco.
As well as the $19 million paid to secure the acquisition, a financial guarantee of $5 million for the performance of future exploration commitments on the Rharb permits has also been provided to ONHYM, the regulator of Morocco's oil and gas sector. This guarantee will be refunded immediately upon the fulfillment of those commitments which is expected to occur during the second half of this year.
Gulfsands said its purchase of Cabre Maroc delivers to the company a large, contiguous and highly prospective acreage position in an area with proven petroleum systems, revenues from near term production, and multiple drilling targets. It believes that there is meaningful near term value potential contained within the proven conventional and shallow depth gas play in the Rharb Centre permit, together with significant exploration upside related to the fold and thrust belt structures identified in the adjacent Rharb Sud, Fes and Taounate permits.
Following completion of the acquisition, Gulfsands and ONHYM have become co-venturers in the Rharb Centre and Rharb Sud permits, with Gulfsands the operator of the joint venture and following completion of various post completion matters, 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.
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