Moulay Bouchta Petroleum Agreement Update

RNS Number : 7756X

Gulfsands Petroleum PLC

28 November 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].

28 November 2017

GULFSANDS PETROLEUM PLC

Moulay Bouchta Petroleum Agreement Update

Gulfsands Petroleum plc ("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and gas company with activities in Syria and Colombia, provides the following update.

On 10^th November 2017 Gulfsands announced its decision to no longer pursue the Moulay Bouchta Petroleum Agreement in Morocco ("Moulay Bouchta").  At that time, the Company noted that it understood that Office National des Hydrocarbures et des Mines ("ONHYM"), intended to call in $1.75 million of restricted cash held as performance guarantees under the Moulay Bouchta contract and that further possible penalties could apply.

Gulfsands can now confirm that it has received official notification from ONHYM that the $1.75 million performance guarantee has indeed been called, and that a further penalty of $0.75 million has been levied against its subsidiary, Gulfsands Petroleum Morocco Limited, in respect of the Minimum Exploration Work Program.

These amounts are in line with the provisions made in the Group's accounts, as detailed in Note 2.4 of the 2016 Annual Report and Accounts.

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	[phone]
Sarah Wharry
Camarco	[phone]
Billy Clegg / Georgia Edmonds

 

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