Horn 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.
Horn Petroleum Corporation is a Canadian oil and gas company with assets in Puntland, Somalia. The corporation holds a 60 per cent interest and operatorship in the Dharoor and Nugaal blocks encompassing a Jurassic Rift Basin on trend and analogous to the large oil fields in Yemen.