Sonde Resources Corp. reached agreement with the Joint Oil authority on terms for the company to enter the second phase of the exploration period on the Joint Oil block in the Gulf of Gabes offshore Libya and Tunisia. The agreement allows the company to defer the three exploratory well obligations into the second phase of the exploration period and avoid the $15 million potential penalty for each well had the company not spudded by December 2012.

Joint Oil's board expected to approve and ratify the agreement on December 20, 2012. Entry into the second phase will remove a major obstacle to attract financing through a partnering process begun early this year and allow the company the necessary flexibility to fully exploit the potential of the Joint Oil block. The company will announce the final terms of the agreement once ratified.