Gulfsands reverts to 100% WI, sole operatorship of PUT-14

This followed the termination of a farm-out agreement.

In October last year, Gulfsands said it had had entered into a farm-out agreement for the PUT-14 Contract with Samarium Energy & Resource Corporation, and Samarium Investment Corporation, acting as guarantor.

Since then, Samarium and Gulfsands have been in regular dialogue regarding the implementation of this agreement, but have been unable to agree a mutually acceptable way to move forward.

"As a result of this uncertainty, Gulfsands took the decision in March to pursue the work programme alone, to ensure the work programme advanced as required under the terms of the PUT-14 licence," it said.

Accordingly, Gulfsands had now contracted the initial phase of the work, namely the Consulta Previa, which would begin imminently.

"Today, the company announces that the agreement has now been terminated and, as a result of this termination, Gulfsands' working interest in the PUT-14 Contract will revert to being 100% and the company will return to being sole operator of the PUT-14 Contract."

At 11:28 BST, shares in AIM-traded Gulfsands were down 9.09% to 5p each.