28th Oct 2013 11:06
LONDON (Alliance News) - Sterling Energy PLC Monday said it has bought into the production sharing contract of the Odewayne Block in the Republic of Somaliland.
The Africa-focused oil exploration and production company said its subsidiary Sterling Energy (East Africa) Limited completed the deal, which sees the company buy a 10% interest in the PSC from Petrosoma Limited for an initial payment of USD2 million and a future conditional payment of USD8 million, based on various operational milestones being met.
The company said it would be carried by operator Genel Energy Somaliland Limited for all exploration activities during the third period of the PSC until November 2014 and the fourth period of the PSC ending in May 2016, with a minimum work obligation for Sterling during the periods at the onshore block in Somaliland.
Prior to the deal, Genel held a 50% holding at the site, Petrosoma held 20%, and Jacka Resources Somaliland Limited held the remaining 30%.
Sterling Energy shares were up 1.3% to 39.75 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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