29th Jan 2016 12:08
LONDON (Alliance News) - Sterling Energy PLC on Friday said its Mauritania subsidiary has notified its joint venture partners of its withdrawal from Block C-3, offshore Mauritania.
As part of the withdrawal, SEML will assign its entire 40.5% participating interest in the production sharing contract for Block C-3, located offshore in the Islamic Republic of Mauritania, to Tullow Mauritania Ltd. That move will come at no cost to Tullow.
"The minimum work obligations for Block C-3 have been completed. As a result, Sterling Energy Mauritania Ltd will have no additional costs associated with the withdrawal," the company said.
Completion of the withdrawal remains subject to the approval by the government of Mauritania.
"Our entry into the C-3 block was prefaced on the block providing dependent running room for the immature shelfal Cretaceous and Jurassic plays recognised in Block C-10. In our opinion the newly acquired and processed regional 2D seismic has not sufficiently de-risked Block C-3 to enable Sterling to commit to enter into Phase 2 of the PSC due to begin in June 2016," Sterling Energy Chief Executive Eskil Jersing said.
"The withdrawal from Block C-3 is entirely in-line with our approach of disciplined exploration. We would like to thank Tullow for all its efforts as operator over the last year and SMHPM, the National Oil Company of Mauritania, for their support and look forward to continuing to work with them to de-risk and mature the remaining potential in Block C-10," Jersing added.
Shares in Sterling Energy were down 3.5% at 13.75 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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