Gulfsands confirms expiry of Morocco licence

Oil and gas company Gulfsands Petroleum updated the market on its Moulay Bouchta Petroleum Agreement, which is held by its subsidiary Gulfsands Petroleum Morocco, on Wednesday.

The AIM-traded firm said that, as it had previously reported on 15 February, it received an extension of the duration of the Initial Phase of the Exploration Period of Moulay Bouchta from Office National des Hydrocarbures et des Mines (ONHYM), from two years to three years, together with a revised work programme.

That took the Initial Phase to June 2017.

“At that time GPML noted that it planned to immediately seek to secure a further extension to allow additional time to complete the revised work programme,” the Gulfsands board noted in its statement.

“ONHYM had indicated a willingness to extend the Initial Phase further, from three years to four years meaning that it would then run through to June 2018.

“In its 2016 Annual Report, the company indicated that it was considering whether to pursue the extension, a decision that would be predicated on it finding an appropriate partner to help take the project forward.”

Gulfsands said it was continuing to try and find a partner for the licence, but had not yet been successful in securing one and so - as of 20 June - the Moulay Bouchta licence had technically expired, with certain minimum work obligations remaining outstanding.

“The company remains in active dialogue with ONHYM to find a mutually beneficial way in which to pursue the work programme, and the company will update the market as those discussions develop.”

Potential work on the Moulay Bouchta licence focussed on an oil prospective area identified to the east of the depleted Haricha oil field, the board explained.

Based on work performed to date, GPML had identified new lead concepts with gross recoverable prospective resources internally estimated at 149 million barrels of oil.

Recent completion of a 180km seismic reprocessing project with thrust belt specialists confirmed the interpretation of those structural leads as indicated on the legacy data, Gulfsands claimed.

“Operationally, the group has commenced its Environmental Impact Study in anticipation of the new seismic acquisition should an extension be consummated and continues to be interested in identifying a farm-in partner for the Moulay Bouchta permit.

“Any parties interested are invited to contact the group directly.”