Ntem Concession, Cameroon

RNS Number : 0615L

Sterling Energy PLC

23 April 2015

 



23 April 2015

Ntem Concession, Cameroon

Sterling Energy Plc, the AIM listed oil and gas exploration company (AIM: SEY), provides the following update for the Ntem Concession, offshore Cameron (the "Ntem Concession").

Background

Sterling Cameroon Limited ("Sterling"), a wholly owned subsidiary of Sterling Energy Plc, holds a 100% working interest in, and is operator of, the Ntem Concession.

The Ntem Concession is in the First Renewal Period.  The minimum work obligations for the First Renewal Period have been satisfied, namely by the drilling of the Bamboo-1 exploration well in the first half of 2014.

Following the drilling of Bamboo-1, an assessment of remaining prospectivity of the Ntem Concession led to the conclusion that the area of greatest potential lay in an area subject to overlapping maritime border claims by the Republic of Cameroon and the Republic of Equatorial Guinea.  

As a result, on 6 May 2014, the operator of the Ntem Concession notified Société Nationale des Hydrocarbures ("SNH") of the joint venture's declaration of force majeure pending formal resolution of the border claims.  SNH advised that "Cameroon does not recognise that any situation of force majeure exists in the Ntem Permit" and SNH has refused to formally recognise the declaration of force majeure.

Update

Sterling received written notice dated 22 April 2015 from SNH that it considers the First Renewal Period of the Ntem Concession to have expired on 22 April 2015 and the Ntem Concession to have lapsed.

Sterling believes that, in accordance with the terms of the Ntem Concession, it's declaration of force majeure on 6 May 2014 is valid.  As such, the First Renewal Period has been suspended since 6 May 2014 and therefore has not expired.  In the event force majeure is lifted, approximately 10 months remain in the First Renewal Period.  

Eskil Jersing, Chief Executive of Sterling said:

"Sterling is committed to working collaboratively with SNH and the Ministry of Industry, Mines and Technological Development of Cameroon to determine the forward plan for the Ntem Concession given the declaration of force majeure and the notice from the Ministry. We will update the market as appropriate in due course"

Further information:
Further information can be found on Sterling Energy Plc'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

 

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