Moulay Bouchta Extension Confirmed
Gulfsands Petroleum plc (AIM: GPX), the oil and gas company with activities in Syria, Tunisia, Colombia and Morocco, today announces that its subsidiary, Gulfsands Petroleum Morocco Limited ("GPML"), has been awarded an extension to its Moulay Bouchta Petroleum Agreement ("Moulay Bouchta") together with a revised work programme.
As previously disclosed in the Group's Interim Report, an agreement had 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 ("Initial Phase"), from two years to three years. On 8 November 2016 the Group reported that all conditions precedent had been satisfied, and it was awaiting formal approval of the extension from the Moroccan Authorities.
The Group confirms that all approvals have now been received, such that the extension has become effective.
As a result, the Initial Phase will now run to 19 June 2017 (previously 19 June 2016) with a revised work programme for the extended Initial Phase consisting of:
Consequently, the estimated cost of the work programme as specified in the amendment to the Petroleum Agreement has been reduced from $3.5million to $2.5million.
GPML will immediately seek to begin the Environmental Impact Study in anticipation of commencing the seismic acquisition. The Company is already in discussions with ONHYM, to secure a further extension to allow additional time to complete the revised work programme.
The work programme focusses on an oil prospective area identified to the east of the depleted Haricha oil field. Based on work performed to date, GPML has identified new lead concepts with gross recoverable Prospective Resources internally estimated at 149 mmbo. This estimate has not been subject to external audit.
The Group continues to be interested in identifying a farm-in partner for the Moulay Bouchta permit and any parties interested are invited to contact the Group directly.