25th Jun 2008 11:30
25 June 2008
STERLING ENERGY PLC
("Sterling" or the "Company")
Korean National Oil Company Assigned 20% Interest in Sangaw North Block
Sterling (symbol: SEY) is an AiM listed independent oil & gas exploration and production company with interests in the Gulf of Mexico, Africa and the Middle East.
Sterling notes today's announcement by the Kurdistan Regional Government of Iraq ("KRG") that the Korean National Oil Company ("KNOC") has been nominated by the KRG to receive the Third Party Interest allocation of 20% in the Sangaw North Block.
Sterling entered into a Production Sharing Contract ("PSC") with the KRG in respect of the Sangaw North exploration Block, Kurdistan on 10 November 2007. As previously announced, Sterling's initial 100% interest in the PSC was subject to back-in rights for the KRG and a Third Party. Following the allocation of the Third Party interest to KNOC, Sterling's interest in the Block will be 80%.
Further details of the KRG announcement can be found on www.KRG.org
The Sangaw North Block
The Block, which covers an area of 492 sq kilometres, is located approximately 140 km south east of Erbil and 50 km south west of Suleimaniah. It lies in a highly prospective area around 50 km south east of the giant Kirkuk oil field and on trend with the major Taq Taq and Chemchemal oil and gas condensate discoveries. The Block itself contains a large surface anticline with multiple reservoir targets, in common with many existing fields in the area, providing strong encouragement for exploration success.
Chief Executive, Graeme Thomson said:
"We welcome our new working interest partner, KNOC, to the project and look forward to working closely with them on this high-potential project."
For further information contact:
Sterling Energy Plc (+44 20 7405 4133)
Graeme Thomson, Chief Executive
Andrew Grosse, Exploration & Technical Director
Evolution Securities (+44 20 7071 4300)
Rob Collins
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
Related Shares:
SEY.L