10th Feb 2015 07:51
LONDON (Alliance News) - Sterling Energy PLC on Tuesday said it has struck a deal to buy a 40.5% interest in the production sharing contract for the Block C-3 prospect in Mauritania from a unit of FTSE 100-listed Tullow Oil PLC.
Under the terms of the deal, Sterling will pay USD2.5 million to Tullow Mauritania to take a 40.5% interest in the production sharing contract for the prospect. It will fund the deal via existing cash resources.
Following completion of the deal, Tullow Mauritania, the operator, will have a 49.5% stake, to Sterling's 40.5% and Société Mauritanienne Des Hydrocarbures Et Du Patrimoine Minier's 10%.
"We are very pleased to be joining Tullow in Block C3 in Mauritania, which we consider to be highly prospective. Block C-3 has an active work programme and we look forward to working with Tullow in the exploration of this largely unexplored block," said Sterling Chairman Alastair Beardsall.
By Sam Unsted; [email protected]; @SamUAtAlliance
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