Gulfsands Petroleum has been unable to find a partner for the Chorbane production sharing contract held by its subsidiary, Gulfsands Petroleum Tunisia, and has decided to let the contract lapse.
The group said it would now work to complete its formal exit from Tunisia.
The group said that as previously announced, the Chorbane PSC was due to expire on 12 July 2017, following an initial extension of two years which was granted in 2015 but the terms of which were disputed with Entreprise Tunisienne d'Activites Petrolieres.
It said that as previously disclosed, since the group's strategy realignment in 2015, Tunisia did not fit with its stated strategy and the group's continuing involvement in the country depended on finding a partner who could help it take the Chorbane project forward.
At 9:09am: (LON:GPX) Gulfsands Petroleum PLC share price was -0.38p at 5.88p