1st Dec 2015 09:12
LONDON (Alliance News) - Sterling Energy PLC on Tuesday said it has been made aware that the state oil company in Cameroon has listed the Ntem Concession that Sterling holds on its website as an "open block".
Sterling said its Sterling Cameroon Ltd subsidiary is the current holder of the Ntem Concession and disputes the rights of the Cameron government and the state oil company, Société Nationale des Hydrocarbures, to re-licence the concession.
The company declared a Force Majeure over the Ntem Concession in May 2014 due to overlapping maritime border claims which affected the concession involving Cameroon and Equatorial Guinea. Due to this, the first renewal period has been suspended since May 6 and, therefore, the Ntem Concession has not expired, Sterling said.
In the event the Force Majeure is lifted, Sterling said the concession would still have 10 months left on the first renewal period.
Sterling said it will seek an appropriate resolution with the authorities over the issue.
Shares in Sterling were down 5.3% to 13.02 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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