Sonde Resources Corp. announced that it has completed definitive documentation and closed the previously announced sale of Liberty Natural Gas LLC which owns a 100% working interest in the Liberty Natural Gas LNG project to an entity related to West Face Capital. The transaction closed on February 22, 2011.
Subsequent to Sonde’s January 28, 2011 press release with respect to the proposed sale, the Office of the Governor for the State of New Jersey publicly issued a statement indicating that it would not approve a licence for the Project. In light of the increased uncertainty regarding the Project the terms of the transaction were renegotiated with the Purchaser agreeing to assume control over the Project’s future. Pursuant to the sale, Sonde received a U.S.$1.0 million cash payment upon closing in respect of reimbursable expenses, and is entitled to receive deferred cash consideration of U.S.$12.5 million payable upon the Company’s first successful gas delivery.
West Face Capital Inc. is a Toronto-based institutional investment manager with over $1.5 billion in assets under management.
In addition, Sonde has increased the maximum amount available under its credit facilities with National Bank of Canada by an additional $20 million (Cdn) in the form of development demand loan. This will assist Sonde in its continued drilling program in Western Canada.
Sonde Resources Corp. is a Calgary, Alberta; Canada based diversified global energy company engaged in the exploration and production of oil and natural gas. Its operations are located in Western Canada and North Africa.
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Source: Sonde Resources, February 25, 2011;