The London-listed explorer has had to forfeit a $5 million bank guarantee relating to a minimum work commitment on the Fes petroleum agreement after its attempt to get another six-month extension was batted away by state player Office for Mining & Hydrocarbons (ONHYM).
The petroleum agreement at the onshore tract, which had already been extended, expired on 24 September.
Although Gulfsands sought another extension, ONHYM rejected this and instead called in a $5 million bank guarantee related the minimum work programme, of which 350 kilometres of 2D seismic, 100 square kilometres of 3D seismic and three commitment wells remain outstanding.
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