Business
Farmin to Odewayne Block (Republic of Somaliland)
Farmin to Odewayne Block (Republic of Somaliland).
About this update from Afentra Plc
[{"type":"text","content":"\n \nRNS Number : 4844R Sterling Energy PLC 28 October 2013 \n \n\n \n28 October 2013\n \nFarmin to Odewayne Block (Republic of Somaliland)\n \nSterling Energy Plc, the AIM listed independent oil & gas exploration and production company (AIM: SEY), is pleased to announce that its wholly owned subsidiary, Sterling Energy (East Africa) Limited (\"Sterling\"), has signed a Farmout Agreement for the Production Sharing Contract of the Odewayne Block (the \"PSC\"), located onshore in the Republic of Somaliland, with Petrosoma Limited (\"Petrosoma\"). \n \nThe current holders of the PSC are:\n \n Genel Energy Somaliland Limited (Operator) 50%\n Petrosoma Limited 20%\n Jacka Resources Somaliland Limited 30%\n \nUnder the terms of the Farmout Agreement, Sterling will on completion:\n \na) assume a 10% interest in the PSC from Petrosoma;\n \nb) pay Petrosoma US$2 million with future conditional payments of $8m based on various operational milestones being met; and\n \nc) be carried by Genel for the costs of all exploration activities during \n \ni. the Third Period of the PSC (expiring November 2014) with an outstanding minimum work obligation of 500 km of 2D seismic; and \nii. the Fourth Period of the PSC (expiring May 2016) with a minimum work obligation of 1,000 km of 2D seismic and one exploration well\n \nThe PSC, awarded in 2005, is in the Third Period and covers block SL6 and part of blocks SL7 and SL10, onshore Somaliland, comprising an area of 22,840 square kilometr...