Junior explorer Sterling Energy announced Tuesday that it has signed a deal with Tullow Mauritania Limited to buy a 40.5-percent interest in the production sharing contract for Block C-3, located offshore in the Islamic Republic of Mauritania.
The current holders of the PSC are Tullow Mauritania Limited, which has a 90-percent stake, and Société Mauritanienne des Hydrocarbures et du Patrimoine Minier, which holds 10 percent.
Sterling will pay $2.5 million for the 40.5-percent interest in the PSC, which will see Tullow retain a 49.5-percent stake.
Block C-3 is in its first phase of exploration and this is due to expire on June 30, 2016. The block covers an area of approximately 3,650 square miles.
Tullow has already acquired around 1,000 miles of 2D seismic data, which is due to be processed this year. Competion of the acquisition and processing of this data represents the minimum work obligation during Phase 1 of the exploration period.
Sterling Chairman Alastair Beardsall commented in a company statement:
"We are very pleased to be joining Tullow in Block C3 in Mauritania, which we consider to be highly prospective. Block C-3 has an active work program and we look forward to working with Tullow in the exploration of this largely unexplored block."
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