28th Apr 2016 08:06
LONDON (Alliance News) - Sterling Energy PLC Thursday said it has informed its joint venture partner on the Ambilobe block offshore Madagascar that it plans to withdraw from the project.
Sterling, through its wholly-owned subsidiary, has informed Pura Vida Mauritius that it will no longer participate in the joint venture and will cease to be the operator of the asset.
The London-listed company said it does not expect to incur any "material costs" as a result of its decision, adding it was withdrawing due to the "challenging commercial landscape". Sterling is hoping the withdrawal will be completed by the end of July this year.
"Given the challenging commercial landscape, we have made the disciplined decision to exit, focusing on shorter-cycle revenue generating assets," said Chief Executive Eskil Kersing.
Sterling has held an interest in the block since 2004 and had carried out a 3D seismic survey in 2015.
Sterling shares were trading down 3.0% to 16.0 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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