Sterling Energy signed a Farmout Agreement for Odewayne Block (Republic of Somaliland)
Sterling Energy Plc, the AIM listed independent oil & gas exploration and production company (AIM:SEY), is pleased to announce that its wholly owned subsidiary, Sterling Energy (East Africa) Limited (“Sterling”), has signed a Farmout Agreement for the Production Sharing Contract of the Odewayne Block (the “PSC”), located onshore in the Republic of Somaliland, with Petrosoma Limited (“Petrosoma”).
The current holders of the PSC are:
• Genel Energy Somaliland Limited (Operator) 50%
• Petrosoma Limited 20%
• Jacka Resources Somaliland Limited 30%
Under the terms of the Farmout Agreement, Sterling will on completion:
a) assume a 10% interest in the PSC from Petrosoma;
b) pay Petrosoma US$2 million with future conditional payments of $8m based on various
operational milestones being met; and
c) be carried by Genel for the costs of all exploration activities during i. the Third Period of the PSC (expiring November 2014) with an outstanding minimum work obligation of 500 km of 2D seismic; and ii. the Fourth Period of the PSC (expiring May 2016) with a minimum work obligation of 1,000 km of 2D seismic and one exploration well
The PSC, awarded in 2005, is in the Third Period and covers block SL6 and part of blocks SL7 and SL10, onshore Somaliland, comprising an area of 22,840 square kilometres. During 2013, an aeromagnetic and gravity survey confirmed the geometry of a broad basin over the Odewayne block believed to be of Jurassic to Cretaceous origin, analogous to productive basins in Yemen. Fieldwork in the block has highlighted the presence of numerous seeps giving encouragement that a working hydrocarbon system is present in this undrilled basin. The forward work programme includes acquisition of an extensive 2D seismic programme in 2014 to define drillable targets.
Completion of the transaction remains subject to approval by the Government of Somaliland.
Genel Energy Somaliland Limited (Operator) is a subsidiary of Genel Energy Plc (LSE), Jacka Resources Somaliland Limited is a subsidiary of Jacka Resources Limited (ASX) and Petrosoma Limited is a privately owned company.
Sterling Energy Plc.’s Chairman, Alastair Beardsall, said:
“We are very pleased to have entered into a Farmout Agreement for the Odewayne Block in Somaliland; by purchasing a 10% carried interest our financial exposure during the Third and Fourth Periods is limited to the immediate and deferred consideration. We consider the Odewayne Block to be highly prospective and look forward to working with our joint venture partners in the exploration of this largely unexplored block.”
ISSUERS OF NEWS RELEASES AND NOT OILANDGASPRESS.COM ARE SOLELY RESPONSIBLE FOR THE ACCURACY OF THE CONTENT.
Public relations, press release distribution service, investor relations, SEC filing, regulatory news,upstream, downstream,corporate announcements,technology developments and political news
www.oilandgaspress.com – The ‘one stop shop’ for global Oil and gas press releases!!!
Email: firstname.lastname@example.org to let us know about your events and we’ll list them free of charge
Email: email@example.com to Advertise your company’s services and reach thousands of oil and gas industry executives and professionals