Sonde Resources, Viking Energy Enter Agreement for Farm-Out Extension
Sonde Resources Corp. announced it has entered into an agreement with Viking Energy North Africa Limited to extend the deadline for meeting the conditions precedent under the Farm-Out Agreement that includes obtaining the consent of Joint Oil to the transfer of a 66.67 percent interest in the Joint Oil Block pursuant to the previously announced farm-out agreement to June 7. To date, the Company and Viking have held a series of discussions and exchanged correspondence with Joint Oil regarding the proposed farm-out and the conditions upon which Joint Oil would be prepared to provide its approval.
As previously disclosed, some of the conditions imposed by Joint Oil are acceptable to the Company and Viking, while others are not. The Company does not believe that the outstanding conditions are supportable under the terms and conditions of the Exploration Production Sharing Agreement and the parties are continuing to seek an acceptable resolution of these issues. While the Company believes that the farm-out should be approved on its merits, no assurance can be given that Joint Oil will approve it or that the farm-out will close. Additionally, there can be no assurance that Viking will agree to a further extension of time if the approval of Joint Oil is not forthcoming prior to June 7.
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