Colombia Update

RNS Number : 0375G

Gulfsands Petroleum PLC

24 May 2017

 

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. If you have any queries on this, then please contact Andrew Morris, the Finance Director of the Company (responsible for arranging release of this announcement) at 5th Floor, 88 Kingsway, London, WC2B 6AA or on [phone].

GULFSANDS PETROLEUM PLC

Colombia Update

24 May 2017

Gulfsands Petroleum plc ("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and gas company with activities in Syria, Tunisia, Colombia and Morocco, is pleased to provide the following update regarding its Putumayo-14 Contract in Colombia.

The Group has interests in the Putumayo-14 Exploration and Production of Hydrocarbons Contract No 2 of 2013, (the "PUT-14 Contract") and the Llanos-50 Exploration and Production of Hydrocarbons Contract No 1 of 2013, (the "LLA-50 Contract").

As previously reported, on 18 October 2016, Gulfsands announced that it had entered into a Farm-Out Agreement ("Agreement") for the PUT-14 Contract with Samarium Energy & Resource Corporation, and Samarium Investment Corporation, acting as Guarantor (together "Samarium").   Since October, Samarium and Gulfsands have been in regular dialogue regarding the implementation of this Agreement but have been unable to agree a mutually acceptable way to move forward.

As a result of this uncertainty, Gulfsands took the decision in March to pursue the work programme alone, to ensure the work programme advanced as required under the terms of the PUT-14 licence.  Accordingly, Gulfsands has now contracted the initial phase of the work, namely the Consulta Previa, which will commence imminently.

Today, the Company announces that the Agreement has now been terminated and, as a result of this termination, Gulfsands' working interest in the PUT-14 Contract will revert to being 100% and the Company will return to being sole operator of the PUT-14 Contract.

For further information, please refer to the Company's website at www.gulfsands.com or contact:

Gulfsands Petroleum Plc	[phone]
John Bell, Managing Director Andrew Morris, Finance Director James Ede-Golightly, Non-Executive Chairman
Cantor Fitzgerald Europe Sarah Wharry Craig Francis	[phone]

 

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