The agreement includes the assumption of Sonde’s liability up to $12.04m under the performance guarantee provided for the Block 5(c) license.

Sonde has agreed to pay a $2m break fee to Niko in the event that such rights of first refusal are exercised and Block 5(c) is transferred pursuant to the exercise of such rights.

Niko has agreed to pay a refundable cash deposit of $20m to Sonde upon receipt of a waiver of the rights of first refusal in respect of Block 5(c).

After closing the transaction, Sonde will be entitled to reclaim an additional $20m on security deposit with BG International, which is currently captured on Sonde’s balance sheet as restricted cash, bringing the total unrestricted cash available from this transaction to approximately $95m.

Sonde is a Canada-based energy company engaged in the exploration and production of oil and natural gas and in the development of a liquefied natural gas project.