Ntem Concession, Cameroon

RNS Number : 4736H

Sterling Energy PLC

01 December 2015

 

1 December 2015

Ntem Concession, Cameroon

Sterling Energy plc (the "Company"), the AIM listed oil and gas exploration company (AIM: SEY), provides the following update on the Ntem Concession, offshore Cameroon.

The Company is aware that Société Nationale des Hydrocarbures ("SNH"), the state oil company of Cameroon, has included a map on its website that indicates that the Ntem Concession is an "open block".

Sterling Cameroon Limited is the current holder of the Ntem Concession and disputes the Ministry and SNH's rights to re-licence the concession. 

As previously announced, the Company declared force majeure over the Ntem Concession on 6 May 2014 due to overlapping maritime border claims affecting the Ntem Concession by the Republic of Cameroon and the Republic of Equatorial Guinea. As a result, the First Renewal Period has been suspended since 6 May 2014 and therefore the Ntem Concession has not expired. In the event force majeure is lifted, approximately 10 months remain in the First Renewal Period.

The Company reserves its rights in relation to the Ntem Concession and does not believe that the Ministry of Industry, Mines and Technological Development (the "Ministry") and/or SNH have the right to relicence the Ntem Concession. The Company will continue to seek an appropriate resolution with the Ministry and SNH given the declaration of force majeure and the subsequent suspension of the First Renewal Period.

Ntem Background

Sterling Cameroon Limited, a wholly owned subsidiary of the Company, holds a 100% working interest in and is operator of the Ntem Concession. The minimum work obligations for the First Renewal Period have been satisfied. The declaration of force majeure arises due to overlapping maritime border claims affecting the Ntem Concession by the Republic of Cameroon and the Republic of Equatorial Guinea.

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

"Sterling is disappointed that SNH and the Ministry have decided to try to promote the Ntem Concession as available to the market. Sterling has been engaging SNH and the Ministry throughout 2015 and continues to seek a collaborative solution given the declaration of force majeure and subsequent suspension of the First Renewal Period from May 2014."

Further Information

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

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

 

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