Sterling Energy Granted PSA Extension By Somaliland

Sterling Energy plc, the AIM-listed oil and gas exploration company, has announced that the Government of the Republic of Somaliland has granted a further 2-year extension to the current period of the Oodweyne Production Sharing Agreement.

The expiry dates of the relevant exploration periods under the PSA shall now be:

• Third Period: 2 November 2018.
• Fourth Period (optional): 2 May 2020.
• Fifth Period (optional): 2 May 2021.
• Sixth Period (optional): 2 May 2022.

The minimum work obligations for the exploration periods remain unchanged: (i) the acquisition of 500 km of 2D seismic during the Third Period; and (ii) the acquisition of 1000 km of 2D seismic and one exploration well during the Fourth Period.

Sterling holds a 40% interest in the PSA and will be carried by Genel (50% interest and Operator) for the costs of all exploration activities during the Third and Fourth Periods of the PSA.

Eskil Jersing, the Company’s Chief Executive Officer said:

“We would like to thank the Government of the Republic of Somaliland and Genel for agreeing to the further 2-year extension. We look forward to the commencement of the seismic campaign.”

Adapted from a press release by David Bizley

About Sterling Energy plc

Sterling Energy plc is an upstream oil and gas company, which is focused primarily on material exploration opportunities in Africa. The Company is engaged in the exploration, development, and production of commercial oil and gas. The Company operates in the Africa segment.

The Africa segment includes its exploration and development activities. It has exploration projects in Mauritania, Madagascar, Somaliland, and Cameroon, together with a production interest in Mauritania. Its Ambilobe block covers an area of approximately 17,650 square kilometers and is located in the Ambilobe Basin, offshore north-west Madagascar. Water depths across the Ambilobe block range from the shoreline to over 3,000 meters.

Its Odewayne Exploration block comprises an area of over 22,840 square kilometers. Its Ntem Concession lies adjacent to the southern maritime border of Cameroon and covers an area of approximately 2,320 square kilometers. Water depths range from 400 to 2,000 meters across the Ntem block.