Completion of additional farmin to Odewayne Block

RNS Number : 5244Y

Sterling Energy PLC

27 January 2014

 

27 January 2014

Completion of farmin to Odewayne Block (Republic of Somaliland)

On 8^th November 2013, Sterling Energy Plc, the AIM listed independent oil & gas exploration and production company (AIM: SEY), announced that its wholly owned subsidiary, Sterling Energy (East Africa) Limited ("Sterling"), had executed a Farmout Agreement for the Production Sharing Contract of the Odewayne Block (the "PSC"), located onshore in the Republic of Somaliland, with Jacka Resources Somaliland Limited ("Jacka"). 

The consent of the Government of Somaliland to the transaction has been granted and completion under the Farmout Agreement has now occurred.

Pursuant to the Farmout Agreement, Sterling has obtained an additional 15% interest in the PSC.  Sterling already held a 10% interest in the PSC pursuant to a transaction with Petrosoma Limited that completed on 6 November 2013. 

Following completion, the holders of the PSC are now:

•       Genel Energy Somaliland Limited (Operator)         50%
•       Sterling Energy (East Africa) Limited                    25%
•       Petrosoma Limited                                             10%
•       Jacka Resources Somaliland Limited                   15%

Sterling Energy Plc.'s Chairman, Alastair Beardsall, said:

"We are very pleased to have completed the acquisition of an additional 15% interest in the Odewayne Block in Somaliland.  We now have a material position in the Odewayne Block, which we consider to be highly prospective.  We look forward to working with our joint venture partners in the exploration of this largely unexplored block."

Details about Somaliland and the Odewayne Block can be found in Sterling's Investor Presentation which can be viewed on the Company's website at www.sterlingenergyplc.com.

Further information:
Sterling Energy Plc.	([phone])
Alastair Beardsall (Chairman) Phil Frank (Exploration Director)
Liberum Capital Limited	([phone])
Clayton Bush Simon Atkinson Tim Graham
Peel Hunt LLP	([phone])
Andy Crossley Richard Crichton

 

END

 

 

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