Canadian firm plans stake, operatorship in Oman oil block

TERMS & CONDITIONS: Sunset Pacific Petroleum will pay the current block holder US$100,000 within 30 days after signing the LOI –

Business Reporter –

MUSCAT –

March 23: Canadian oil and gas firm Sunset Pacific Petroleum Ltd announced yesterday that it has entered into a non-binding letter of intent (LOI) to acquire a 56.25 per cent participating interest in an unspecified, existing exploration and production sharing agreement for an onshore block in Oman, with the current block holder owning an 18.75 per cent participating interest and the Sultanate of Oman owning the remaining 25 per cent participating interest in the property.

As required under the terms of the exploration and sharing agreement, the Oman government is carried in the exploration phase, the Vancouver-based company said, adding that it will be the operator of the block.

Pursuant to the terms of the LOI, Sunset will pay the current block holder US$100,000 within 30 days after signing the LOI. A finder’s fee may be payable with respect to this transaction. The parties are now working to finalise the necessary formal agreements as soon as practicable, the company added in a press statement.

“In conjunction with the execution of a formal agreement and the acquisition of a majority interest in this Oman Block, the Company will be looking to change its name to one that more closely reflects the region in which this onshore block is located. Shareholder approval will be required for any such name change. The Company expects to call a shareholders’ meeting for early May, 2015,” it stated.

Sunset also announces a non-brokered private placement of up to 2,000,000 units of the Company at a price of $ 0.20/unit for proceeds of up to $400,000. Each unit will be comprised of one common share and one share purchase warrant. Each warrant will be exercisable into an additional common share of the Company for a period of five years at a price of $0.30/warrant share. The proceeds from this financing will be used for general working capital. In connection with this financing, the Company may pay a finder’s fee to eligible finders in accordance with regulatory policies. Completion of this financing is subject to regulatory approval.

Sunset Pacific Petroleum Ltd (formerly Bighorn Petroleum), incorporated 1981, is an energy company engaged in the exploration, development and production of oil and natural gas. Currently, the company has operated in Western Canada, and is now evaluating prospective near-term exploration and production opportunities in the Middle East and North Africa (MENA) region.

During the period 2010-2013, the Company undertook a restructuring and renamed itself Sunset Pacific Petroleum with a view towards international projects. Starting in March 2014, Sunset Pacific started fundraising for project development in the MENA region. The goal is to become a medium oil producer in the MENA region within the next five years with a strategic focus on North African near term exploration and production assets.

SOURCE: OMAN DAILY OBSERVER

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