Sonde Resources Corp.

Sonde Resources Corp.

June 07, 2013 08:19 ET

Sonde Resources Corp. Announces Further Extension of Farm-Out of Joint Oil Block

CALGARY, ALBERTA--(Marketwired - June 7, 2013) - Sonde Resources Corp. ("Sonde" or the "Company") (TSX:SOQ) (NYSE MKT:SOQ) announced today that the original Farm-Out Agreement with Viking Energy North Africa Limited ("Viking") has been extended by mutual agreement until July 31, 2013. An extension of the closing date for the Farm-Out Agreement was obtained to allow the parties to complete the negotiation of the documentation reflecting the amendments required by the Joint Oil Board of Directors and set forth in the Company's press release of May 6, 2013, to negotiate the form of assignment agreement and related documentation with Joint Oil to effect the terms of the Farm-Out and to fund the US$50.995 million bank guarantee (of which the Company is obligated to contribute US$10.995 million). Recent developments relating to the proposed acquisition of a majority interest in the Zarat license (located to the south of the Joint Oil Block) have resulted in a re-evaluation by Viking and its lenders of the proposed unitization and unit plan of development for the Zarat license and Joint Oil Block, and an assessment of the potential implications thereof on the Farm-Out Agreement with Sonde. The Company is working diligently to advance the Farm-Out with Viking; however, there can be no assurance that the Farm-Out Agreement will be completed.

Sonde Resources Corp. is a Calgary, Alberta, Canada based energy company engaged in the exploration and production of oil and natural gas. Its operations are located in Western Canada and offshore North Africa. See Sonde's website at to review further detail on Sonde's operations.

Forward-looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws and "forward looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements include, among others, those concerning the proposed amendment to the Viking Farm-Out Agreement, the approval process for the proposed assignment to Viking, the satisfaction of various conditions relating to the closing of the Viking Farm-Out Agreement. Such forward-looking information or statements are based on a number of assumptions which may prove to be incorrect. Assumptions have been made regarding, among other things, market and operating conditions, future commodity prices, the ability of the parties to satisfy the conditions to closing of the Viking Farm-Out Agreement, management's expectations regarding the availability of capital. Forward-looking information or statements are subject to a number of risks and uncertainties and actual results could differ materially from the forward-looking information and statements due to a number of factors, including, without limitation, general economic, market and business conditions; stock market volatility; risks in conducting foreign operations, including political and fiscal instability and the possibility of civil unrest or military action; changes in government policies or laws; risk that government approvals may be delayed or withheld; lack of, or restricted access to, sources of financing; and commercial risks associated with the closing of the Viking Farm-Out. Additional assumptions and risks are set out in detail in the Company's Annual Information Form, available on SEDAR at, and the Company's annual reports on Form 40-F on file with the U.S. Securities and Exchange Commission. Although management believes that the expectations reflected in the forward-looking information or forward-looking statements are reasonable, prospective investors should not place undue reliance on forward-looking information or forward-looking statements because Sonde can provide no assurance those expectations will prove to be correct. Sonde bases its forward-looking statements and forward-looking information on information currently available and do not assume any obligation to update them unless required by law.

Contact Information

  • Sonde Resources Corp.
    Kurt A. Nelson
    Chief Financial Officer
    (403) 503-7944
    (403) 216-2374 (FAX)