8th Nov 2013 09:10
LONDON (Alliance News) - Sterling Energy PLC Friday said its wholly owned subsidiary Sterling Energy (East Africa) Limited signed a further investment into the Production Sharing contract at the Odewayne Block in the Republic Of Somaliland, raising its stake in the project to 25%.
The AIM-listed oil and gas exploration and production company on Wednesday had said that it had farmed into the site for a 10% non-operating stake. It said it has now agreed to take another 15% from Jacka Resources Somaliland for a price of USD3 million, with future conditional payments of USD12 million based on the completion of various operational milestones.
Genel Energy PLC, which holds a 50% interest at the site, will cover the costs of all exploration activities at the site over the third and fourth period of the production sharing contract. Petrosoma hold 10% and, after the deal, Jacka Resources will hold 15% of the site.
The company said that completion of the transaction with Jacka, part of Jacka Resources Limited of Australia, remains subject to approval by the Somaliland government.
Sterling Energy shares up 1.0% at 41.92 pence early Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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