Completion of acquisition of interest in Block C-3

RNS Number : 6245U

Sterling Energy PLC

30 July 2015

 



30 July 2015

Completion of acquisition of an interest in Block C-3, Mauritania

Sterling Energy plc (the 'Company' - Ticker Symbol: SEY), the AIM listed upstream oil and gas company with interests in Africa, is pleased to announce that completion has now occurred under the sale and purchase agreement between its wholly owned subsidiary, Sterling Energy Mauritania Limited ('SEML') and Tullow Mauritania Limited ('Tullow') to acquire a 40.5% interest in the production sharing contract for Block C-3, located offshore in the Islamic Republic of Mauritania (the 'PSC').

The holders of the PSC are now:

Tullow (Operator)	49.5%
SEML	40.5%
Société Mauritanienne des Hydrocarbures et de Patrimoine Minier ('SMHPM')	10%

Block C-3

The PSC, awarded in 2013, is in the first phase of the exploration period ('Phase 1') and covers Block C-3, offshore Mauritania, comprising an area of approximately 9,800km². Phase 1 of the PSC is due to expire on 30 June 2016. Tullow has acquired 1,600km of 2D seismic in 2014 which is now being evaluated. Completion of the acquisition and processing of the 2D seismic data represents the minimum work obligation during Phase 1.

Following completion of Phase 1, the joint venture may elect to enter into Phase 2 and Phase 3 (each with a 3 year term) with a minimum work obligation of 700km² of 3D seismic and 1 well, and 1 well, respectively.

SEML and Tullow will carry SMHPM's ten percent (10%) interest proportionally during the exploration period of the PSC.

This laterally extensive shallow water block lies in an underexplored area of the Mauritanian shelfal region that has seen very limited drilling and seismic acquisition. Block C-3 provides SEML entry to both a multiple play exploration setting on an emerging shelf margin; the latter recently highlighted by the SNE-1 well (P50 of 330mmbbls) discovered by Cairn Energy to the south in Senegal. Exploration success has continued in the basin with the April 2015 Tortue-1 deep water gas discovery (P50 8TCF) announced by Kosmos Energy in block C-8.

Comment

Eskil Jersing, the Company's Chief Executive Officer commented:

"We are pleased to have the opportunity to partner with Tullow and SMHPM in the C-3 block in addition to the recent C-10 entry. As a result of recent play opening discoveries, this part of the West African margin is rapidly becoming an exciting new oil province. The Company is of the view that the Cretaceous through Jurassic shelfal play has intriguing and overlooked potential. We will further de-risk the block with the new 2D data to allow consideration of entry to the next phase."

Qualified Person

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Mr Matthew Bowyer, Exploration Manager of the Group, who has been involved in the oil industry for over 19 years, is the qualified person that has reviewed the technical information set out above.  

Further Information

Further information can be found on the Company's website at www.sterlingenergyplc.com 

Sterling Energy plc	Tel: [phone]
Eskil Jersing (CEO) Alastair Beardsall (Chairman)
Peel Hunt LLP	Tel: [phone]
Richard Crichton Ross Allister

 

END

 

 

ACQEALXEDDXSEFF