By Editor
Gulfsands Petroleum (LON:GPX) has completed its purchase of an extensive portfolio of oil and gas exploration licences and concessions in Morocco.
In December, Gulfsands said it was buying the 13,352 sq km of assets as part of its purchase of Cabre Maroc Ltd from Caithness Petroleum. The total consideration for these transactions resulted in cash payments totalling approximately US$19 million by way of purchase consideration and the satisfaction of existing liabilities of Cabre Maroc.
A financial guarantee of US$5 million for the performance of future exploration commitments on the Rharb permits has also been provided to ONHYM, the regulator of Morocco’s oil and gas sector. This guarantee will be refunded immediately upon fulfilment of those commitments which is expected to occur during the second half of this year.
Cabre Maroc gives Gulfsands a large, contiguous and highly prospective acreage position in an area with proven petroleum systems, revenues from near term production, and multiple drilling targets. The company believes that there is meaningful near term value potential contained within the proven conventional and shallow depth gas play in the Rharb Centre permit, together with significant exploration upside related to the fold and thrust belt structures identified in the adjacent Rharb Sud, Fes and Taounate permits.
Following completion of the acquisition, Gulfsands and ONHYM have become co-venturers in the Rharb Centre and Rharb Sud permits, with Gulfsands the operator of the joint venture.
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