Sonde Resources Corp. announced that the farm-out agreement with Viking Exploration and Production Tunisia Limited (Viking) has been executed. Formal closing remains conditioned upon obtaining all of the necessary consents and approvals.

On May 3, 2013, Sonde received approval, subject to meeting the terms and conditions outlined below from Joint Oil's Board of Directors, to farm out 66.67% of its potential Zarat Field Unit Area and 50% of the remainder of its interest in the Joint Oil Block to Viking. The material terms of the farm-out agreement are as follows:

Sonde will remain the operator of the Joint Oil Block; Sonde and Viking will post a bank guarantee equivalent to US$50.995 million as a guarantee for the 2013 through 2015 work obligations the ("Bank Guarantee"). Viking will contribute US$40.0 million to the guarantee and Sonde will contribute US$10.995 million (the "Balance") to the guarantee. Amounts under the Bank Guarantee will be released in accordance with a pre-determined formula as the work obligations are performed;

Tags: Sonde Resources