Gulfsands Petroleum subsidiary receives extension on Moulay Bouchta agreement

Gulfsands Petroleum subsidiary Gulfsands Petroleum Morocco has been awarded an extension to its Moulay Bouchta Petroleum Agreement along with a revised work programme.

The group’s Interim Report had previously disclosed that an agreement had been reached with Office National des Hydrocarbures et des Mines (ONHYM) to extend the duration of the initial phase of the exploration period of Moulay Bouchta from two to three years.

The agreement was subject to the customary government approvals and certain closing conditions.

In November last year, the company announced fulfilling all precedent conditions and was awaiting approval from Moroccan authorities.

Gulfsands Petroleum announced that it has now received all approvals that increase the exploration period from two years to three years.

With the extension, the initial phase will continue to 19 June with a revised work programme.

The revised work programme includes the acquisition of 200km 2D line seismic, reprocessing and interpretation of selected legacy 2D seismic data; and legacy field study with the aim to identify any potential for re-activation.

Subsequently, the estimated cost of the work programme has also been revised, which reduced to $2.5m from $3.5m.

GPML intends to start the environmental impact study immediately, anticipating the commencement of seismic acquisition.

It is also negotiating with ONHYM to receive further extension that will enable the company to accomplish the revised work programme.

The work programme targets an oil prospective area identified to the east of the exhausted Haricha oil field.

Incorporated in the UK, Gulfsands Petroleum focuses on oil and gas projects located in Syria, Tunisia, Colombia and Morocco.

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Image: 2D seismic acquisition on Fez permit in 2013 by Gulfsands partner in Morocco. Photo: courtesy of ONHYM.