Sterling Finalizes Second Somaliland Acquisition

Odewayne, 12 Feb 2014 (SDN) –Sterling Energy has completed a second farm-in deal covering an onshore block in central Africa’s Somaliland.

The company said it now has government approval for the second farm-in to acquire a total of 25% equity in a production-sharing contract (PSC) for the onshore Odewayne block. Last November Sterling completed the first farm-in with Petrosoma to acquire 10% in the Odewayne PSC, paying US $10 million conditional upon certain work milestones being completed.

A few days later Sterling signalled the second deal to acquire a further 15% interest in the PSC from Jacka Resources, involving the payment of $15 million, which is also conditional on certain work obligations being met.

As a result Sterling now holds 25% in the block, which is operated by Genel Energy with 50%. Petrosoma now holds 10%, and Jacka Resources 15%.

The Odewayne PSC covers a total of 22,840 sq km (8,816 sq miles), and aeromagnetic and gravity surveys were carried out over the area in 2013. Oil seeps have also been discovered during field work, adding to belief that there is a working petroleum system in the area.

http://www.epmag.com/