Business
Farm-out of interest in Ambilobe (Madagascar)
Farm-out of interest in Ambilobe (Madagascar).
About this update from Afentra Plc
[{"type":"text","content":"\n \nRNS Number : 9384R Sterling Energy PLC 01 November 2013 \n \n\n \n01 November 2013\n \nFarm-out of interest in Ambilobe (Madagascar) to Pura Vida Energy NL\n \nSterling Energy Plc, the AIM listed independent oil & gas exploration and production company (AIM: SEY), announced today that its wholly owned subsidiary, Sterling Energy (UK) Limited (\"Sterling\"), has signed a Farmout Agreement for the Production Sharing Contract of the Ambilobe Block (the \"PSC\"), located offshore Madagascar, with Pura Vida Mauritius (\"Pura Vida\"). \n \nSterling currently holds a 100% interest in, and is the operator of, the PSC. Under the terms of the Farmout Agreement, Pura Vida will on completion:\n \na) assume a 50% interest in the PSC; \nb) pay Sterling US$1.25 million towards Sterling's past costs; and\nc) pay all costs associated with the acquisition of 1,000 km of 2D seismic, and 1,250 km² of 3D seismic up to a maximum cost of US$15 million. \nFollowing the farm-out, Sterling will retain a 50% interest in the PSC and remain as operator. \n \nThe PSC, awarded in 2004, is currently in Phase 2 of the Exploration Period, Presidential approval was recently granted to extend the current phase to September 2015. There are no outstanding work commitments in Phase 2. \n \nThe PSC covers approximately 17,650 sq. km of the Ambilobe Basin, a large under-explored area offshore north-west Madagascar where both Cretaceous and Tertiary leads have been identified. The proposed seismic programme aims to mature the best leads to one or more drill ready prospects prior to the expiry of Phase 2 as Phase 3, if entered, has a commitment to drill an exploration well. \n \nDetails of the Ambilobe PSC can be found in Sterling's Investor Presentation which can be viewed on the Company's website at www.sterlingenergyplc.com.\n \nCompletion of the transaction is subject to approval by the Government of Madagascar.\n \nPura Vida is a wholly owned subsidiary of Pura Vida Energy NL, an oil & gas company listed on the Australian Securities Exchange (ASX: PVD). Pura Vida Energy NL is an Australian based oil explorer with a substantial acreage position off the Atlantic coast of Morocco, known as the Mazagan Offshore Area. It also has an 80% interes...