Proactive Investors UK
By Jamie Ashcroft
Gulfsands Petroleum(LON:GPX) has agreed a deal to sell its non-core Gulf of Mexico assets and US based operations.
The next well in Morocco is scheduled to get underway on or about the December 15, and is expected to last for three weeks
Canadian firm Hillcrest Resources is paying Gulfsands US$50,000 upon closing and will assume all liabilities, which will include future decommissioning costs of about US$12mln.
“Our US portfolio of interests have served our company very well over the years and were an important factor in the company’s successful listing on the AIM market of the London Stock Exchange in 2005,” said chief executive Mahdi Sajjad.
“These assets have produced a significant amount of cash for the group, which enabled the company to pursue the acquisition, exploration and development of our valuable interests in Syria, but are now no longer considered central to our plans.”
Gulfsands’ core strategy is to focus on exploring and developing interests in Morocco and Tunisia, until circumstances allow a return to operations in Syria, where it had established production prior to the country’s civil war.
In Morocco, the company revealed today it is set to drill its next shallow exploration well, the DRC prospect, on the onshore Rharb Centre permit next week.
Drilling is scheduled to get underway on or about the December 15, and is expected to last for three weeks.
DRC is targeting a shallow gas accumulation like the summer’s successful LTU-1 discovery.
Gulfsands also told investors that operations is underway to hook up the LTU well and talks are in progress with Morocco’s ONHYM to allow the start of gas sales to local consumers via ONHYM’s transport facilities.
The operations in Morocco come at a potentially pivotal time for Gulfsands, which in January is expected to hold a general meeting and jold shareholder votes that could see significant management changes.
Major shareholder Waterford Finance and Investment, which has just increased its stake to 28%, wants to remove Sajjad and commercial director Ken Judge; separately, Abdul Rahman Kayed (ARK), owning 9.75%, has proposed to remove chairman Andrew West, as well as non-executive directors John Bell and James Ede.
