Horn Petroleum Corporation provides the following update on its activities in its Dharoor and Nugaal PSC areas in Puntland, Somalia.
The Company has informed the Government of Puntland (Somalia) that the Company will be significantly reducing its presence in Bosaso, Puntland and will refrain from any operational activity and associated expenditures pending a resolution of the political situation between the Regional Government of Puntland and the Federal Government of Somalia regarding the legitimacy of oil concession contracts.
Given the considerable efforts taken by the Company to date in Puntland (Somalia), the Company has requested a two year extension to the current exploration period from the Government of Puntland to allow time for these political challenges to be resolved. Accordingly, the Company has elected during the fourth quarter of 2014 to record a non-cash impairment charge related to its assets in Puntland. As at September 30, 2014 intangible exploration assets related to these properties amounted to approximately $91 million.