CALGARY, ALBERTA -- (Marketwired) -- 05/06/13 -- Sonde Resources Corp. ("Sonde" or the "Company") (TSX: SOQ) (NYSE MKT: SOQ) announced today that the Company has received Joint Oil's approval to farm-out the Joint Oil Block to Viking Exploration and Production Tunisia Limited ("Viking"), a private company. The conditions to this approval and amended commercial terms of the farm-out agreement are described below. In addition, the Company released its financial and operating results for the first quarter ended March 31, 2013. The Management's Discussion and Analysis and Financial Statements for the first quarter ended March 31, 2013 can be viewed on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on the Securities and Exchange Commission's Electronic Document Gathering and Retrieval System (EDGAR) at www.sec.gov. Shareholders have the ability to receive a hard copy of the Company's complete first quarter financial statements free of charge upon request.
Sonde will be hosting a conference call on Tuesday, May 7, 2013 at 2:00 p.m. MDT to provide a report on the first quarter 2013 results and an update on current activities. Mr. Jack Schanck, President and CEO will host the call. All interested parties may join the call by dialing 416-340-2216 or 866-226-1792. Please dial-in 15 minutes prior to the call to secure a line. The conference call will be archived for replay on the Sonde website within 48 hours of this conference call.
Joint Oil Approval of the Farm-Out to Viking
Sonde has received approval from Joint Oil's Board of Directors to farm-out 66.67% of its potential Zarat Field Exploitation Area and 50% of the remainder of its interest in the Joint Oil Block to Viking. In order to receive Joint Oil approval, certain terms of the farm-out agreement described in our December 27, 2012 press release, financial statements and annual information form are required to be amended. The amendments to the farm-out agreement are summarized below. Joint Oil's approval of the assignment to Viking is subject to approval of the definitive form of Assignment Agreement and format of the Bank Guarantee (discussed below). Completion of the assignment will require the execution of the definitive amendment to the farm-out agreement with Viking and closing of the farm-out. Viking has agreed to the conditions.
The amendments to the original farm-out agreement are as follows:
-- Sonde will remain the operator of the Joint Oil Block;-- Sonde and Viking will post a bank guarantee equivalent to US$50.995 million as a guarantee for the 2013 through 2015 work obligations the ("Bank Guarantee"). Viking will contribute US$40 million to the guarantee and Sonde will contribute US$10.995 million (the "Balance") to the guarantee. Amounts under the Bank Guarantee will be released in accordance with a pre-determined formula as the work obligations are performed;-- Viking will acquire a 66.67% participating interest and Sonde will retain a 33.33% participating interest in the Zarat Field Exploitation Area;-- In consideration for contributing the Balance, Sonde will retain a 50% participating interest in the Joint Oil Block that is not covered by the exploitation area around the Zarat Field development. In addition, Sonde will recover the Balance from the initial proceeds from Zarat Field production in preference to the other terms of the farm-out; and-- Any future discoveries will be shared as to 50% for Sonde and 50% for Viking.