Sonde Resources Corp. Announces Third Quarter 2012 Financial,

Sonde Resources Corp. Announces Third Quarter 2012 Financial,
Operating Results and North Africa Update 
CALGARY, ALBERTA -- (Marketwire) -- 11/09/12 -- Sonde Resources Corp.
("Sonde" or the "Corporation") (TSX:SOQ) (NYSE MKT:SOQ) (NYSE
Amex:SOQ) announces the release of its financial and operating
results and management's discussion and analysis and financial
statements for the third quarter ended September 30, 2012. These
reports can be viewed on the System for Electronic Document Analysis
and Retrieval (SEDAR) at www.sedar.com. Shareholders have the ability
to receive a hard copy of Sonde's complete third quarter financial
statements free of charge upon request. 
Western Canada  
Operations  
Western Canada production averaged 2,155 boe/day (68% natural gas).
September production rates were diminished by approximately 5% due to
required biennial plant maintenance at the Drumheller 9-9 battery. At
Michichi, Sonde has completed tie-in of its third short-radius
horizontal well, the 5-16-31-17W4; however, start-up of this well was
delayed for a short period due to the need for a coiled tubing clean
out to remove excess frac sand from the well. In the Mannville "I"
pool, Sonde has converted a previously suspended well to a water
source well in preparation for expanding the waterflood, and is
preparing for a high-rate test of this well in early November in an
attempt to demonstrate that sufficient water will be available for
this purpose. 
Exploration  
Sonde has completed an extended test of its previously announced
4-19-67-26W5 Montney well at Ante Creek North. This test confirmed
the previously announced short-term production data, with high water
cuts (approx. 95%) throughout the production period. The well is
capable of approximately 120 boe/d hydrocarbon production, but
provides insufficient production to support the required pipeline and
processing infrastructure on its own. If Sonde can prove an extension
to this pool with follow-up drilling, the 4-19 can be tied-in as part
of a future development plan and has subsequently been suspended
awaiting future drilling results.  
Sonde's recently-announced workover success on a Wabamun well NW
Alberta has continued to produce better-than-expected results, with
current daily rates of approximately 150 
boe/day, and high producing
pressure indicating the well is capable of better performance when
facilities can be optimized. Sonde is very encouraged by these
results and is preparing plans for three horizontal well locations,
and has submitted a permit application for an initial horizontal
step-out well, which Sonde anticipates receiving in the coming month. 
North Africa - Joint Oil Block  
Management met with representatives of Joint Oil and its shareholders
the week of October 8 in Tunisia. Due to the status of the
unitization agreements and the Gulf of Gabes inert and acid gas
initiatives undertaken with Joint Oil and potential partners, Sonde
formally requested that the three well exploration obligation be
deferred into the second phase of the exploration period. The second
phase of the exploration period expires in December 2015. With an
extension, Sonde anticipates that continued progress on both the
unitization agreements and the inert and acid gas initiatives will
allow the Company to obtain a drilling rig on a staged basis and
continue to seek financing through a partnering process.  
In addition, Sonde presented the exploration potential of the Joint
Oil Block and discussed the history of activities, beginning with the
drilling of the Zarat North - 1 one appraisal well, 513 sq. km. of
3-D seismic, review of the plan of development, implications of the
Gulf of Gabes inert and acid gas consortium and the status of
unitization. Sonde is encouraged by the positive tone of the ongoing
dialogue with Joint Oil. While no assurance can be provided and while
Sonde has reserved its rights in this regard, Sonde believes a basis
may exist for a mutually acceptable extension of the three well
exploration obligation. Sonde continues to make progress on defining
the Zarat Field and area unit development plan allowing Sonde to
advance its ongoing financing efforts.  
Going concern  
Sonde's consolidated financial statements have been prepared on a
going concern basis. The going concern basis assumes that the Company
will continue in operation for the foreseeable future and will be
able to realize its assets and discharge its liabilities and
commitments in the normal course of business. As of September 30,
2012, the Company has positive cash flow from operations of $2.2
million and had an accumulated deficit of $251.7 million. Despite an
extensive effort, Sonde has thus far been unable to obtain financing
or find other arrangements on acceptable terms for the Joint Oil
Block. Sonde is continuing its efforts to secure alternate financing.
This uncertainty of securing alternate financing and being able to
meet its three well exploratory commitment without a deferral of the
obligation into the second exploration phase, casts significant doubt
on Sonde's ability to continue as a going concern. Public and private
debt and equity markets are not accessible now, or in the near term
on reasonable terms for exploratory or development projects on the
Joint Oil Block. Without access to third party financing or a party
to assume the Joint Oil Block exploratory obligations, the Company
may not be able to continue as a going concern. The Company's
consolidated financial statements do not include any adjustments to
the amounts and classification of assets (with the exception of an
impairment in the second quarter of the Joint Oil component of the
Exploration and Evaluation Assets) and liabilities that may be
necessary should the Company be unable to continue as a going
concern, and these adjustments may be material.  
Management Comments  
Jack Schanck, Sonde's President and CEO, said, "Sonde generated $3.0
million of cash flow from operations in the third quarter. We are
beginning to see the impact of our drilling, recompletion/workover
programs, coupled with higher natural gas prices in Western Canada
and the impact of our corporate cost reduction measures. Staff
reductions, reductions in compensation, the renegotiation of
commitments and focus on cost have improved our operating cost
structure. We continue our efforts to support and protect shareholder
value in these difficult economic times. We remain focused on oil
related projects in Western Canada, and continue to improve our land
position in areas with near-term oil resource potential quarter by
quarter, with the current management team having amassed over 160,000
net acres of exploratory leases in the past two years. The
shareholder value proposition from this program was demonstrated by
our $75 million undeveloped land sale in the first quarter and we
believe that others will see the value of our exploratory acreage
accumulation."  
Mr. Schanck concluded with, "Our three oil wells at Michichi and the
addition of waterflood oil reserves in the Mannville "I" pool are
anticipated to provide operating cash flow and an increase in our
debt capacity. We currently have $25 million of cash and an undrawn
credit line of $30 million. While Sonde's management added a "going
concern" emphasis paragraph to the second quarter's financial
statements and disclosures it is our belief that a resolution in
North Africa will mitigate that issue on future financial
statements." 
Business Overview and Future Strategy  
The Company is focused on seeking sour
ces of financing or investment
for its three well exploratory obligation in North Africa and has
requested that this obligation be deferred into the second phase of
the exploration period of the Joint Oil Exploration Production and
Sharing Agreement. The exploration period would expire in December
2015. In Western Canada, Sonde is monitoring natural gas netback
prices and is returning a significant percentage of shut-in natural
gas production back online. Sonde has completed hook up of its three
Michichi oil wells, recovered the frac fluid from two of the wells
and begun on the third. Sonde will monitor netbacks on existing
production in the Central and Southern cash generating units and has
continued to accumulate undeveloped acreage in the Montney (44,000
net acres), Duvernay (86,000 net acres) and Wabamun (51,000 net
acres) plays. 
Sonde continues to showcase its undeveloped acreage opportunities to
attract investment or joint venture partners. Sonde reduced staff in
the second quarter and lowered its third quarter general and
administrative expense to $1.3 million. Sonde continues to seek ways
to control costs and improve netback on its operations.  
Sonde filed its third quarter unaudited financial statements,
Management Discussion and Analysis with SEDAR and with the Securities
and Exchange Commission on November 9, 2012. 


 
Third Quarter Financial and Operational Review                              
                                                                            
($ thousands except per share and production amounts)                       
----------------------------------------------------------------------------
                                     2012     2012       %     2011       % 
                                       Q3       Q2  Change       Q3  Change 
----------------------------------------------------------------------------
Financial                                                                   
  Petroleum & natural gas                                                   
   sales(1)                         6,436    6,314      --   10,279     (38)
  Net Loss                         (2,073) (28,030)     93     (668)    210 
  Net Loss per share - basic and                                            
   diluted                          (0.03)   (0.45)     93    (0.01)    210 
  Funds from (used for)                                                     
   operations (2)                     494   (1,267)    139    1,916     (74)
  Funds from (used for)                                                     
   operations per share - basic                                             
   and diluted(2)                    0.01    (0.02)     --     0.03      -- 
  Capital expenditures             14,716    7,632      93   20,854     (29)
  Working capital surplus          21,211   34,865     (39)  (3,520)    703 
  Average shares outstanding       62,301   62,301      --   62,301      -- 
----------------------------------------------------------------------------
Production                                                                  
  Natural gas (mcf/d)               8,757    9,665      (9)  12,673     (31)
  Crude oil (bbl/d)                   523      554      (6)     631     (17)
  Natural gas liquids (bbl/d)         172      191     (10)     203     (15)
----------------------------------------------------------------------------
  Total (boe/d)                     2,155    2,356      (9)   2,946     (27)
----------------------------------------------------------------------------
Pricing                                                                     
  Natural gas ($/mcf)(3)             2.36     2.10      12     3.92     (40)
  Crude oil ($/bbl)(3)              77.09    67.10      15    81.90      (6)
  Natural gas liquids ($/bbl)(3)    52.24    61.07     (14)   66.83     (22)
----------------------------------------------------------------------------
Average sales price ($/boe)(3)      32.46    29.33      11    39.01     (17)
----------------------------------------------------------------------------
                                                                            
(1) Petroleum and natural gas sales and realized gains on financial         
    instruments.                                                            
(2) Non-IFRS measures.                                                      
(3) Excluding royalties and transportation costs.                           

 
For the three months, ended September 30, 2012, production averaged
2,155 boe/d. The decrease in production from the second quarter of
2012 is primarily due to decreased gas volumes due to gas wells being
shut-in and natural decline, with few capital expenditures allocated
to replacing gas production. The Company's natural gas prices for the
third quarter were in line with the AECO price of $2.34/mcf and the
Company's realized crude price were in line with the Edmonton Light
of $86.08/ bbl.   
The third quarter production revenue after transportation, royalties
and realized hedging activities for the three months ended September
30, 2012, was $5.6 million compared to $5.5 million for the three
months ended June 30, 2012. Sonde realized an average sales price of
$32.46 including hedging activity per boe for the third quarter
compared to $29.33 per boe in the second quarter of 2012 and $39.01
in the third quarter of 2011.  
Combined operating and well workover expenses for the three months
ended September 30, 2012 were $3.8 million or $19.31 per boe,
compared to $4.2 million or $19.75 per boe in the three months ended
June 30, 2012. Sonde continues to monitor costs and minimize
operations that do not have an immediate economic impact.  
Sonde Resources Corp. is a Calgary, Alberta, Canada based energy
company engaged in the exploration and production of oil and natural
gas. Its operations are located in Western Canada, and offshore North
Africa. See Sonde's website at www.sonderesources.com to review
further detail on Sonde's operations.  
Non-IFRS Measures - This document contains references to funds from
(used for) operations and funds from (used for) operations per share,
which are not defined under IFRS as issued by the International
Accounting Standards Board and are therefore non-IFRS financial
measures that do not have any standardized meaning prescribed by IFRS
and are, therefore, unlikely to be comparable to similar measures
presented by other issuers. Management of the Company believes funds
from (used for) operations and funds from (used for) operations per
share are relevant indicators of the Company's financial performance,
ability to fund future capital expenditures. Funds from (used for)
operations should not be considered an alternative to or more
meaningful than cash flow from operating activities, as determined in
accordance with IFRS, as an indicator of the Company's performance.
In the funds from (used for) operations section of this MD&A, a
reconciliation has been prepared of funds from (used for) operations
to cash from operating activities, the most comparable measure
calculated in accordance with IFRS. Boe Presentation - Production
information is commonly reported in units of barrel of oil equivalent
("boe"). For purposes of computing such units, natural gas is
converted to equivalent barrels of oil using a conv
ersion factor of
six thousand cubic feet to one barrel of oil. This conversion ratio
of 6:1 is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. Such disclosure of boes may be
misleading, particularly if used in isolation. Additionally, given
the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy equivalency
of 6:1, utilizing conversion ratio of 6:1 may be misleading as an
indication of value. Readers should be aware that historical results
are not necessarily indicative of future performance. Natural gas
production is expressed in thousand cubic feet ("mcf"). Oil and
natural gas liquids are expressed in barrels ("bbls"). 
Forward Looking Information - This news release contains
"forward-looking information" within the meaning of applicable
Canadian securities laws and "forward looking statements" within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
These statements include, among others, those concerning the
Company's anticipated operational plans and activities including the
Company's development and exploration program in Western Canada, the
exploration, development and drilling programs in North Africa,
continued plans to seek financing through a partnering process in
North Africa, planned capital expenditures and sources of funding,
the strategy of Sonde and the expectation of improved future results. 
Such forward-looking information or statements are based on a number
of risks, uncertainties and assumptions which may cause actual
results or other expectations to differ materially from those
anticipated and which may prove to be incorrect. Assumptions have
been made regarding, among other things, operating conditions,
management's expectations regarding future growth, plans for and
result of drilling activity, market conditions, availability of
capital, future commodity prices and differentials and capital and
other expenditures. Actual results could differ materially due to a
number of factors, including, without limitation, operational risks
in development, exploration and production; delays or changes in
plans with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve and resource estimates; the
uncertainty of estimates and projections in relation to production;
risks affecting Sonde's ability to execute projects and market oil
and natural gas; risks inherent in operating in foreign jurisdictions
and negotiating with foreign governments; the ability to attract and
retain key personnel; and the inability to raise additional capital.
Additional assumptions and risks are set out in detail in the
Company's Annual Information Form, available on SEDAR at
www.sedar.com., and the Corporation's annual reports on Form 40-F on
file with the U.S. Securities and Exchange Commission.  
Although management believes that the expectations reflected in the
forward-looking information or forward-looking statements are
reasonable, prospective investors should not place undue reliance on
forward-looking information or forward-looking statements because
Sonde can provide no assurance those expectations will prove to be
correct. Sonde bases its forward-looking statements and
forward-looking information on information currently available and do
not assume any obligation to update them unless required by law.
Contacts:
Sonde Resources Corp.
Kurt A. Nelson
Chief Financial Officer
(403) 503-7944
(403) 216-2374 (FAX) 
Sonde Resources Corp.
Suite 3200, 500 - 4th Avenue S.W.
Calgary, Alberta, Canada T2P 2V6
www.sonderesources.com