Sonde Resources Corp., Calgary, said that the board of directors and general assembly of the Joint Oil authority have approved the assignments and amendment to the exploration and production sharing agreement required as conditions precedent to closing the farmout to Viking Exploration & Production Tunisia Ltd. for the Joint Oil block in the Mediterranean offshore Libya and Tunisia.
Sonde, Joint Oil, and Viking will meet soon to sign documents associated with the assignments and EPSA amendment. Thereafter, Sonde and Viking can proceed with closing the farmout.
Closing is subject to, among other conditions, a condition precedent that the previously disclosed $50.995 million bank guarantee, of which Viking is responsible for $40 million and Sonde for the remainder, must be fully funded prior to closing.
Toufic Nassif, president of Sonde North Africa, said, “Joint Oil’s approval of these agreements is a significant milestone on the path to closing the Viking farmout and pursuing the development of the Zarat field and exploration of the Joint Oil block” (see map, OGJ, Sept. 15, 2008, p. 50).