Gulfsands Petroleum PLC Llanos-50 Contract 18 Month Extension Confirmed (6592E)

TIDMGPX

RNS Number : 6592E

Gulfsands Petroleum PLC

10 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 4th Floor, 1 Royal Exchange Avenue, London EC3V 3LT or on [phone].

GULFSANDS PETROLEUM PLC

Llanos-50 Contract 18 Month Extension Confirmed

10 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 Llanos-50 Contract in Colombia.

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, the Phase I of the LLA-50 Contract expired in November 2016 and the Group has been in discussions with Agencia Nacional de Hidrocarburos ("ANH") since then, to secure an extension to the license contract. Gulfsands had proposed to increase the Minimum Work Programme for Phase 1, by adding 52 km of additional 2D seismic, with an estimated cost of approximately $1.4 million, in exchange for an extension to the Phase 1 period of 18 months. Gulfsands is pleased to announce that it has been informed by ANH that this proposal has been accepted, and that it is has now completed all formalities, including the provision of appropriate Financial Guarantee arrangements to consummate the 18 month extension. The Phase 1 period will now run to May 2018.

In anticipation of the formalisation of the extension, the Group has already commenced work on reprocessing legacy seismic, and has begun tendering for the initial environmental work and expects to commence this work shortly.

The Company continues to seek a partner for the LLA-50 Contract and any interested parties are invited to contact the company directly for further details.

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] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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May 10, 2017 02:00 ET (06:00 GMT)