23rd Apr 2015 08:41
LONDON (Alliance News) - Sterling Energy PLC Thursday said it is working with authorities in Cameroon to reach an agrement on the Ntem concession, with the Cameroon government saying the company's concession has lapsed but Sterling arguing the force majeure imposed on the site means there remains ten months left on the first renewal period.
Sterling said it received written notice from Société Nationale des Hydrocarbures, Cameroon's national oil company, that it considers the first renewal period for the Ntem concession to have ended on April 22 and that the concession has now lapsed.
But Sterling said the force majeure imposed on the site in on May 6, 2014 is valid and, as such, that the first renewal period has been suspended since then, leaving approximately ten months left on the concession before expiry. Société Nationale des Hydrocarbures has refused to formally recognise Sterling's declaration of force majeure and has advised the company that the Cameroon government takes the same view.
Sterling declared the force majeure after an assessment on the concession led to the conclusion that the area of greatest exploration potential lay in an area subject to overlapping maritime border claims by Cameroon and Equatorial Guinea.
"Sterling is committed to working collaboratively with SNH and the Ministry of Industry, Mines and Technological Development of Cameroon to determine the forward plan for the Ntem Concession given the declaration of force majeure and the notice from the Ministry. We will update the market as appropriate in due course," said Sterling Chief Executive Eskil Jersing.
Sterling shares were down 0.4% at 17.17 pence Thusrday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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