Sonde running out of money, still on the blockSonde running out of money, still on the block 2014-11-18 09:32 ET - News Release Mr. Kurt Nelson reports SONDE RESOURCES CORP. UPDATES LIQUIDITY POSITION Sonde Resources Corp.'s capital resources have been significantly depleted since June 30, 2014, and to date, its strategic alternatives process has not resulted in a transaction that would satisfy Sonde's significant financial commitments under the exploration and production sharing agreement (EPSA) covering the joint oil block. Refer to Sonde's management discussion and analysis for the three and six months ended June 30, 2014, for a description of these material commitments. As at Nov. 17, 2014, cash and cash equivalents (excluding restricted cash) are estimated to be $300,000. Restricted cash secures a $15-million (U.S.) letter of credit issued to Joint Oil to guarantee the company's obligation to drill the Fisal-1 well by Nov. 30, 2014, as well as a $200,000 abandonment bond in Canada. The penalty for failure to drill the Fisal-1 well on or before Nov. 30, 2014, would allow Joint Oil to draw $15-million (U.S.) under the letter of credit to satisfy this penalty. Drilling of the Fisal-1 well has not commenced due to the company's current liquidity position, and it is Sonde's expectation that Joint Oil may draw upon the letter of credit in early December. Sonde has also provided a corporate guarantee of $30-million (U.S.) to secure its commitment to drill two additional wells. Under the terms of the EPSA, the next well is required to be drilled by Dec. 23, 2014, and the final well is required to be drilled by Dec. 23, 2015. Failure to meet these commitments could result in a termination of the EPSA by Joint Oil. In addition to its work commitments under the EPSA, Sonde has commitments under its existing office leases which are further detailed in its second quarter MD&A, and its net current assets less liabilities as at Nov. 17, 2014, is estimated to be a negative $300,000. The company no longer generates cash flow from petroleum and natural gas sales, and the company no longer has a credit facility. As such, the company must finance operations, including its commitments under the EPSA, from working capital, new financings, farm-outs or property dispositions. While discussions are continuing, the company's strategic alternatives process has not resulted in a transaction that would satisfy its significant financial commitments. There can be no assurance that the current strategic process will result in the sale of its interest or securing a partner, farm-out or other source of financing to meet the company's financial obligations. There is a significant likelihood that the company will exhaust its working capital prior to the execution of new financings, farm-outs or property dispositions. Sonde's interim financial statements for the three and nine months ended Sept. 30, 2014, and related disclosures were due on Nov. 14, 2014, and the company is presently unable to complete the preparation and filing of its third quarter report. The company's failure to file its third quarter report will likely result in the issuance of a cease trade order by the Canadian securities regulatory authorities and could lead to a delisting of the company's common shares from all stock exchanges. We seek Safe Harbor. © 2014 Canjex Publishing Ltd. All rights reserved.