8 Nov 2016 16:35
GULFSANDS PETROLEUM PLC
Licence Update
8 November 2016
Gulfsands Petroleum plc ("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and gas company with activities in Syria, Tunisia, Colombia and Morocco, provides the following update regarding its oil and gas licences in Colombia and Morocco.
Colombia - Llanos 50
The First Exploration Phase of the Llanos 50 Exploration and Production of Hydrocarbons Contract No 1 of 2013 (the "LLA-50 Contract") expired on 7th November 2016 with certain minimum work obligations outstanding. The Company is in active dialogue with Agencia Nacional de Hidrocarburos in Colombia ("ANH") with respect to extending this First Exploration Phase and amending the minimum work programme in order to allow further time for the Company to fulfil its obligations under the LLA-50 Contract.
The Company will update the market in due course as to the outcome of this dialogue.
Morocco - Moulay Bouchta
As previously disclosed in the Group's Interim Report, an agreement has 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, from two years to three years.
The Group confirms that all conditions precedent have now been satisfied, and it is now awaiting approval of the extension from ONHYM.
The effect of the extension, should it be approved, will be that the Initial Phase will be extended by 12 months, to now run to 19 June 2017, 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.
The Company will update the market when official approval has been received.
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 Sarah Wharry Craig Francis | +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.