Gulfsands Petroleum Plc in its update today expressed disappointment for not beinggranted an extension by Morocco’s oil company ONHYM (Office National des Hydrocarbures et des Mines), to its Fes Petroleum Agreement in the country.

The Fes Agreement covers the Fes area onshore Morocco where the company had targeted prospective resources of about 478 million barrels of oil equivalent.

The extension period of the Fes Agreement had expired on the 24th of September 2015 making the Oil and gas company submit another request to ONHYM to extend this Agreement for a period of 6 months. The extension however, was not granted.

 “We are disappointed not to have been given an extension to progress our discussions with potential farm-in partners. The geology within the Fes area is very complex; only recently have we been able to interpret the re-processed 2D seismic data acquired in early 2014 and begin the process of identifying potential drill-ready prospects, unfortunately we have run out of time to continue the exploration programme.”  Alastair Beardsall, the Chairman of Gulfsands told Rigzone news.

As a matter of fact, the company not being able to obtain an extension has suffered the loss of a $5 million bank guarantee whereby in June, it had written down $22.1 million of costs directly related to the Fes Agreement.

Gulfsands however indicated that according to the agreed work programme, 214 miles of 2D seismic data acquisition, 37 square miles of 3D seismic and the drilling of three wells were still left.