Sterling Energy PLC Odewayne, Repubilc of Somaliland (2548B)
April 03 2017 - 2:00AM
UK Regulatory
TIDMSEY
RNS Number : 2548B
Sterling Energy PLC
03 April 2017
3 April 2017
ODEWAYNE, REPUBILC OF SOMALILAND
Sterling Energy Plc ("Sterling" or the "Company"), the AIM
listed oil and gas exploration and production company (AIM: SEY),
is pleased to announce that it has agreed with Petrosoma Limited
("Petrosoma") to revised terms of the Farmout Agreement between
Sterling Energy (East Africa) Limited ("SEEAL") and Petrosoma dated
October 2013 (the "Farmout Agreement"). The revised terms will
reduce the amounts due by SEEAL to Petrosoma and reduce SEEAL's
interest in Odewayne by 6%.
Pursuant to the Farmout Agreement, SEEAL purchased a 10%
interest in the Odewayne Production Sharing Agreement ("PSA") from
Petrosoma. SEEAL purchased an additional 30% in other transactions
with Jacka Resources Somaliland Limited.
The Farmout Agreement included future contingent consideration
totalling US$8m from SEEAL to Petrosoma. The Farmout Agreement has
been amended so that the parties will cancel the US$8m contingent
consideration in return for: (i) a payment by SEEAL to Petrosoma of
US$3.5m; and (ii) a transfer from SEEAL to Petrosoma of a 6%
interest in the PSA.
Completion of the transfer of the participating interest remains
subject to approval of the Government of Somaliland. Upon such
approval, SEEAL will retain a 34% interest in the Odewayne Block,
fully carried by Genel Energy for its share of the costs of all
exploration activities during the Third and Fourth Periods of the
PSA.
Further to the Company's statement on 20 March 2017, the Company
anticipates that the 2D seismic campaign on the Odewayne Block will
commence in Q2 2017.
Sterling Energy Plc.'s CEO, Eskil Jersing, said:
"We are very pleased to have amended the terms of the Farmout
Agreement for the Odewayne Block so as to reduce our overall cash
exposure. We retain a material stake in the Odewayne Block and look
forward to the commencement of the 2D seismic campaign."
Further information:
This announcement is inside information for the
purposes of Article 7 of Regulation 596/2014.
Sterling Energy Plc Tel: +44 20 7405 4133
Eskil Jersing (CEO)
Michael Kroupeev (Chairman)
Peel Hunt LLP Tel: +44 20 7418 8900
Richard Crichton
Ross Allister
This information is provided by RNS
The company news service from the London Stock Exchange
END
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