Hargeisa (Wargane News)- Sterling Energy PLC Tuesday said it has signed a further deal with Jacka Resources Somaliland Ltd to acquire an additional 15% interest in the Production Sharing Contract for the Odewayne Block in Somaliland.
The oil and gas exploration and production company said it is hoping to increase its holding in the Production Sharing Contract to 40% from 25% for an initial USD2.4 million in cash on signature and a further USD9.6 million on completion.
The company said the deal will cancel a previous agreement of USD12 million in future conditional payments between Sterling and Jacka, and Sterling will be carried by Genel Energy PLC, which has a 50% holding at the site, for the costs of all exploration activities during the third and fourth period of the ongoing Production Sharing Contract.
The Odewayne Block covers an area of 22,000 kilometres squared and extensive fieldwork and a high resolution gravity and magnetic data acquisition programme has been completed on the site, with a 2D seismic programme planned for 2014 to define the sites drillable targets.
Sterling Energy shares were down 1.3% to 29.60 pence Tuesday.
By Tom McIvor; firstname.lastname@example.org; @TomMcIvor1
Source: Alliance News Limited.