9th Feb 2015 12:30
LONDON (Alliance News) - Sterling Energy PLC on Monday said it has been notified of changes to Premier Oil PLC's interests in a range of oil licences in Mauritania which mean it will not receive a royalty linked to Premier's participation in three of the fields.
Sterling said Premier has notified it that its interests in the production sharing contracts for the Tiof, Tevet and Banda gas discoveries have all expired.
As a result of Premier exiting the interests, Sterling will no longer receive royalties related to these discoveries.
Sterling said Premier's decision does not impact its royalties linked to the Chinguietti field.
"It is disappointing that Sterling will not benefit from a royalty linked to Premier's participation in a development of Banda, Tiof or Tevet," Sterling Chairman Alastair Beardsall said.
Sterling shares were down 12% to 16.00 pence on Monday early afternoon.
By Sam Unsted; [email protected]; @SamUAtAlliance
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