Sterling Energy granted PSA extension by Republic of Somaliland
Sterling Energy plc, the AIM listed oil and gas exploration company, has announced that the Government of the Republic of Somaliland has granted a further 2 year extension to the current period of the Odewayne Production Sharing Agreement.
The expiry dates of the relevant exploration periods under the PSA shall now be:
- Third Period: 2 November 2018.
- Fourth Period (optional): 2 May 2020.
- Fifth Period (optional): 2 May 2021.
- Sixth Period (optional): 2 May 2022.
The minimum work obligations for the exploration periods remain unchanged: (i) the acquisition of 500 km of 2D seismic during the Third Period; and (ii) the acquisition of 1000 km of 2D seismic and one exploration well during the Fourth Period.
Sterling holds a 40% interest in the PSA and will be carried by Genel (50% interest and Operator) for the costs of all exploration activities during the Third and Fourth Periods of the PSA.
Eskil Jersing, the Company’s Chief Executive Officer said:
“We would like to thank the Government of the Republic of Somaliland and Genel for agreeing to the further 2 year extension. We look forward to the commencement of the seismic campaign.”
Adapted from a press release by David Bizley