Gulfsands Petroleum plc (“Gulfsands”, the “Group” or the “Company” – AIM: GPX), the oil and gas company with activities in Syria, Tunisia, Colombia and Morocco, today announces that its subsidiary, Gulfsands Petroleum Morocco Limited (“GPML”), has been awarded an extension to its Moulay Bouchta Petroleum Agreement (“Moulay Bouchta”) together with a revised work programme.
As previously disclosed in the Group’s Interim Report, an agreement had been reached with Office National des Hydrocarbures et des Mines (“ONHYM”), subject to the usual government approvals and certain conditions precedent, to extend the duration of the Initial Phase of the Exploration Period of Moulay Bouchta (“Initial Phase”), from two years to three years. On 8 November 2016 the Group reported that all conditions precedent had been satisfied, and it was awaiting formal approval of the extension from the Moroccan Authorities.
The Group confirms that all approvals have now been received, such that the extension has become effective.
As a result, the Initial Phase will now run to 19 June 2017 (previously 19 June 2016) with a revised work programme for the extended Initial Phase consisting of:
- acquisition of 200 km 2D line seismic;
- reprocessing and interpretation of selected legacy 2D seismic data; and
- legacy field study with the aim to identify any potential for re-activation.
Consequently, the estimated cost of the work programme as specified in the amendment to the Petroleum Agreement has been reduced from $3.5million to $2.5million.
GPML will immediately seek to begin the Environmental Impact Study in anticipation of commencing the seismic acquisition. The Company is already in discussions with ONHYM, to secure a further extension to allow additional time to complete the revised work programme.
The work programme focusses on an oil prospective area identified to the east of the depleted Haricha oil field. Based on work performed to date, GPML has identified new lead concepts with gross recoverable Prospective Resources internally estimated at 149 mmbo. This estimate has not been subject to external audit.
The Group continues to be interested in identifying a farm-in partner for the Moulay Bouchta permit and any parties interested are invited to contact the Group directly.
Pursuant to the requirements of the AIM Rules for Companies, the technical information and resource reporting contained in this announcement has been reviewed by Mr Ian Conway BA, MA (Oxon), MSc, Technical Director of the Company. Mr Conway has more than 30 years’ experience as a petroleum reservoir engineer, and is a member of the SPE (Society of Petroleum Engineers) and the PESGB (Petroleum Exploration Society of Great Britain). He has read and approved the technical disclosure in this regulatory announcement which complies with the Society of Petroleum Engineers standard.
For further information, please refer to the Company’s website at www.gulfsands.com or contact:
|Gulfsands Petroleum Plc||+44 (0)20 7464 4490|
|John Bell, Managing Director
Andrew Morris, Finance Director
James Ede-Golightly, Non-Executive Chairman
|Cantor Fitzgerald Europe||+44 (0)20 7894 7000|
Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities legislation. These forward-looking statements are based on certain assumptions made by Gulfsands and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production or a decline in oil and gas prices. Gulfsands is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”). Upon the publication of this announcement via Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain. If you have any queries on this, then please contact Andrew Morris, the Finance Director of the Company (responsible for arranging release of this announcement) at 4th Floor, 1 Royal Exchange Avenue, London EC3V 3LT or on +44 (0) 207 464 4490.