Sonde Granted Extension for N. Africa Exploration
Sonde has received a one year extension to December 23, 2013, on the first phase of the Exploration period to conduct operations on the Joint Oil Block in North Africa. This extension is conditioned on commencement of the three well drilling program in September 2012, which is Sonde's remaining obligation after completion of a 500 sq km 3D seismic survey that is underway. We expect to finish the survey field work by the end of January. In addition, Sonde has paid the USD $12.5 million obligation known as the Mariner Swap Agreement that was due in August 2011. Sonde could not make payment while under force majeure and until sanctions were lifted against Libya. Joint Oil is equally owned by Tunisian and Libyan entities.
Jack Schanck, Sonde's CEO, said, "This is another milestone in continuing our development of the Zarat Field on the Joint Oil Block, the extension allows us flexibility in fulfilling our obligations under the Exploration Production and Sharing Agreement and working towards a production license around Zarat. The extension will further allow us to seek funding for the Zarat commitments."