Sterling Farms-out Romanian and UK North Sea Acreage
Sterling has reached agreement with Gas Plus International B.V. (Gas Plus) with respect to a farm-out of a 15% working interest share in the Midia and Pelican Blocks offshore Romania. Completion is subject to approval of the National Agency for Mineral Resources (NAMR) and will take effect in 2008, following ratification of the new concession agreement recently approved by NAMR.
To earn the working interest, which includes the Doina gas discovery, Gas Plus will pay a lump sum and fund a promoted share of the Midia SE well.
Additionally, Sterling has signed multiple farm-out agreements with Petro Ventures Ltd. (PV), a wholly owned subsidiary of Australian company Petro Ventures International Limited (PVIL).
The three part agreements with PV includes a 5% working interest in UK Blocks 42/12 and 42/13 containing the Breagh prospect, a 15-20% working interest in the other UK Quad 42 exploration blocks which surround Breagh; and a 20% interest in the Midia and Pelican Blocks offshore Romania.
In total the agreements, which in certain cases remain subject to partner and government approvals, involve PV funding a promoted share for the cost of drilling five offshore wells, including three offshore UK and two offshore Romania.
Following completion of these arrangements, Sterling will retain a 65% interest in the Midia and Pelican Blocks offshore Romania and a 45% interest in Blocks 42/12 and 42/13 in the UK North Sea.
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