Gulfsands Updates Chorbane and Kerkouane Permits

Gulfsands Petroleum reported on its two permits in Tunisia, the Chorbane and the Kerkouane. The Kerkouane Permit is located offshore northeast of Tunisia and is contiguous to the company’s G.R15.PU located offshore the island of Pantelleria southwest of Sicily in Italian waters. Gulfsands saw its exploration permit on the Kerkouane extended to February 2014. 

The Kerkouane Permit contains the Dougga gas/condensate discovery made in 1981, which is estimated to comprise mean raw GIIP of 618 Bcf. The Lambouka-1 well was drilled in 2010, and is currently suspended. Preliminary petrophysical interpretations identified two hydrocarbon bearing intervals, but hole conditions did not allow for any pressure measurement, fluid sample recovery or drill-stem testing operations to be conducted. The JV is currently in discussions with the authorities in Tunisia regarding potential fiscal options for progressing the development of the existing Dougga gas/condensate discovery.

On the Chorbane Permit the company saw a 20% mandatory relinquishment in July 2012. The permit now covers an area of approximately 1,938 sq km. The permit is surrounded by several producing oil fields and extensive oil and gas infrastructure. A number of prospects and leads have been identified within the permit. The exploration term is set to expire in July 2015.

The company has recently reached preliminary agreements to acquire the 10% participating interests of both Verus Investments Ltd. and Xstate Resources Ltd., in the Chorbane Permit, and Xstate's 10% participating interest in the Kerkouane and Pantelleria permits in Tunisia and Italy. The completion of each of these transactions is subject to a number of conditions including finalization of formal Sale and Purchase Agreements and various regulatory and joint venture approvals. As a  result, the timing and certainty of completion of these transactions is at present difficult to predict and appropriate announcements as to the progress of each transaction will be made in due course.