Sonde Resources Corp. Announces North Africa Update
December 05 2012 - 4:34PM
Marketwired
Sonde Resources Corp. ("Sonde" or the "Company") (TSX:SOQ) (NYSE
MKT:SOQ) (NYSE Amex:SOQ) would like to update the status of its
North Africa Activities.
Three Exploratory Well Commitment
Joint Oil and Sonde have reached an agreement on the terms for
Sonde to enter the second phase of the exploration period under the
Exploration and Production Sharing Contract (EPSA). The agreement
allows Sonde to defer the three exploratory well obligations into
the second phase of the Exploration Period and avoid the US $15
million potential penalty for each well had Sonde not commenced
drilling by December 2012. Joint Oil's board of directors is
expected to approve and ratify the agreement at their December 20,
2012 meeting. The entry into the second phase will remove a major
obstacle to attract financing through a partnering process begun
early this year and allow Sonde the necessary flexibility to fully
exploit the potential of the Joint Oil Block. Sonde will announce
the final terms of the agreement once ratified.
Unitization Discussion
Sonde has reached a tentative agreement on the Unitization
principles of the Zarat Field with PA Resources, the Zarat license
holder, to the south of the Joint Oil Block. This agreement
includes principles relating to the Unit Area, Unit Plan of
Development Area and Tract Participation. The Unit Plan of
Development is on track for submission to the Tunisian Authorities
for approval by the end of the second quarter of 2013. A detailed
reservoir technical evaluation undertaken jointly by Sonde and PA
Resources is on going. Preliminary results indicate that the gas
recycling option is a viable production option which will allow the
production of oil and condensate in advance of gas blow down. Sonde
will make a further announcement relating to the Unit Plan of
Development and Unitization principles once all approvals have been
obtained.
Inert and Acid Gas Initiative
The Gulf of Gabes consortium meets regularly and has retained
technical consultants to evaluate alternatives to the treatment and
storage of the inert and acid gases. As the operator of the Joint
Oil Block, Sonde and Joint Oil are active participants in this
initiative. The consultants expect the various studies to take
about twelve months to identify alternatives for carbon dioxide
sequestration.
Toufic Nassif
Mr. Nassif joined Sonde as a full time employee and President of
Sonde North Africa and a member of the Executive Management Team
with responsibility for the Joint Oil Block. Mr. Nassif is a
well-known and respected industry leader with over 33 years of
experience in the US and international oil and natural gas
industries specializing in business development, negotiations and
petroleum operations management in North Africa and the Middle
East. Mr. Nassif has been Sonde's full time consultant managing the
Joint Oil Block.
Jack Schanck, President CEO and, said, "Sonde's management team,
board and employees have all been working diligently to extend its
exploratory well commitment, resolve unitization issues and seek
financing alternatives on the Joint Oil Block. Joint Oil has
assisted Sonde by recognizing the cost and difficulties in moving
the Zarat Field development and exploratory effort forward by
extending our obligations into the second phase of the exploration
period. We expect to shortly finalize all the agreements and
provide our shareholders with an update on the Joint Oil Block's
potential."
Sonde Resources Corp. is a Calgary, Alberta, Canada based energy
company engaged in the exploration and production of oil and
natural gas. Its operations are located in Western Canada, and
offshore North Africa. See Sonde's website at
www.sonderesources.com to review further detail on Sonde's
operations.
Forward Looking Information - This news release contains
"forward-looking information" within the meaning of applicable
Canadian securities laws and "forward looking statements" within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. These statements include, among others, the anticipated
approval by Joint Oil of the deferral of the Company's three
exploratory well obligations relating to the Joint Oil Block into
the second phase of the Exploration Period without payment of any
penalty, the proposed unitization of the Zarat Field and the Joint
Oil Block and execution of an agreement relating thereto with PA
Resources and the expecting timing associated with the inert and
acid gas initiative. There can be no assurance that the approval of
Joint Oil will be received on terms acceptable to Sonde or at all
or that Sonde will be able to reach a definitive agreement with
respect to unitization with PA Resources. Such forward-looking
information or statements are based on a number of risks,
uncertainties and assumptions which may cause actual results or
other expectations to differ materially from those anticipated and
which may prove to be incorrect. Assumptions have been made
regarding, among other things, management's expectations regarding
negotiations with foreign governments and commercial parties.
Actual results could differ materially due to a number of factors,
including, without limitation, market conditions; risks inherent in
operating in foreign jurisdictions and negotiating with foreign
governments and foreign commercial parties; delays or changes in
plans with respect to exploration or development projects or
capital expenditures; risks affecting Sonde's ability to execute
projects and market oil and natural gas; and the inability to raise
additional capital to pursue projects. Additional assumptions and
risks are set out in detail in the Company's Annual Information
Form, available on SEDAR at www.sedar.com., and the Company's
annual reports on Form 40-F on file with the U.S. Securities and
Exchange Commission. Although management believes that the
expectations reflected in the forward-looking information or
forward-looking statements are reasonable, prospective investors
should not place undue reliance on forward-looking information or
forward-looking statements because Sonde can provide no assurance
those expectations will prove to be correct. Sonde bases its
forward-looking statements and forward-looking information on
information currently available and do not assume any obligation to
update them unless required by law.
Contacts: Sonde Resources Corp. Kurt A. Nelson Chief Financial
Officer Sonde Resources Corp. Suite 3200, 500 - 4th Avenue S.W.
Calgary, Alberta, Canada T2P 2V6 (403) 503-7944 (403) 216-2374
(FAX) www.sonderesources.com