Wednesday, October 30, 2013
Sonde Resources reported that Viking E&P Tunisia has requested an extension to the closing deadline for the farm-out agreement between Sonde and Viking to November 15. Subsequently, Sonde requested a similar extension from Joint Oil for the closing deadline for the Viking Assignment Agreement. Joint Oil Management has approved the request, subject to endorsement from the board of directors, which management expects to receive. This timing aligns with the planned confirmation by the Joint Oil Board of the satisfaction of all conditions applicable to the Viking Assignment Agreement and final ratification of said assignment.
Both the farm-out agreement and the Viking Assignment Agreement require Viking to deposit $40 million into a bank guarantee as a condition precedent to closing. Until this condition is fulfilled, the farm-out agreement cannot close and Joint Oil is unable to complete the assignment of a working interest in the EPSA to Viking. Funding of the bank guarantee by Viking is subject to the completion of third-party financing by Viking. The completion of this financing is outside the control of Sonde.
Sonde is working closely with Joint Oil and Viking to bring this matter to a final resolution.