Thursday, February 16, 2017
Gulfsands Petroleum’s subsidiary, Gulfsands Petroleum Morocco Ltd., was awarded an extension to its Moulay Bouchta Petroleum Agreement. The extension comes with a revised work program.
An agreement was reached with Morocco’s state-run firm 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, from two years to three years. Gulfsands met all the conditions needed under the agreement and the extension was granted.
As a result, the Initial Phase will now run to June 2017 with a revised work the extended Initial Phase consisting of the acquisition of 200 km 2D line seismic, the 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 program as specified in the amendment to the Petroleum Agreement has been reduced from $3.5 million to $2.5 million.
The company 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 program.