Gulfsands Petroleum is said to be in talks with its major shareholders to secure working capital.
The company requires around $11million to settle a loan balance and would need access to around $15million of new capital to fund operational activities which are currently planned.
Earlier this year Gulfsands said Arawak Energy had terminated its Strategic Cooperation Agreement with the company.
The move was made after discussions between the two companies regarding potential business opportunities in the Middle East and North Afric and a $20million convertible loan facility.
A spokesman for Gulfsands Petroleum said the company was advised by Arawak that following statements made by certain shareholders of the company and non-executive directors, the company said it would be terminating the agreement.
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