1st Nov 2013 13:23
LONDON (Alliance News) - Sterling Energy PLC said Friday that its subsidiary Sterling Energy (UK) Limited had signed a farmout agreement for the production share contract of the Ambilobe block in Madagascar with Pura Vida Mauritius.
Pura Vida is a subsidiary of Pura Vida Energy NL Oil, a Australian oil explorer.
Sterling is currently the operator of the product sharing contract. Under the terms of the farmout agreement, Pura Vida will assume a 50% interest in the contract. It will pay Sterling USD1.25 million towards its past costs and pay all costs associated with the acquisition of a 1,000 kilometres of 2D seismic data and 1,250 kilometres squared of 3D seismic data up to USD15 million.
Following the farmout Sterling will retain a 50% interest in the contract as an operator.
"We are pleased to welcome Pura Vida as our partner in the Ambilobe PSC," said Executive Chairman Alastair Beardsall in a statement. "The Ambilobe area is considered to be highly prospective, but remains largely unexplored; the proposed seismic programme facilitated by the farmout will allow the partners to further investigate the potential of the Ambilobe Basin at no cost to Sterling."
Shares in Sterling Energy were trading up 0.12 pence at 38.12 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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