Sterling Signs Agreement with Gemini
Sterling has reached an agreement with Gemini Oil and Gas Fund II, L.P. under which Sterling may call up to US $7-million from Gemini to fund certain eligible expenditures on its forthcoming offshore Romania drilling program. In conjunction with the other farm outs recently announced, this will ensure Sterling is fully funded through the drilling and any testing of the Doina Sister well, whilst retaining an overall 65-% working interest in the Midia and Pelican Blocks. In the event of success and future production from the Doina trend (currently defined as Doina, Doina Sister and Doina North only), Gemini will be entitled to payments equivalent to a share of Sterling's gross revenues from such production.
Sterling increased its interest to 100-% in these two offshore Romania Blocks at the end of 2006 by acquiring the interest of the previous operator. This purchase has allowed Sterling to accelerate its activity in Romania, its second main focus area.
Following on from the above agreements, Sterling has signed a drilling contract with Grup Servicii Petroliere S.A. ("GSP") for the use of the jack up rig Prometeu, which is available to start operations on the Doina Sister well in mid December 2007.
Stewart Gibson, CEO, commented, "The arrangement with Gemini perfectly
suits Sterling's requirements at this stage of its corporate development,
leaves Sterling and Gemini economically aligned to the results of the Doina
Sister well and is complementary to the other farm-out arrangements. We are
pleased that the introduction of farm-in partners and the current arrangement
with Gemini confirm our belief in the prospectivity of the area and allow us
to bring the drill bit to the first of many exciting prospects within the
large 1.1-million acre concession."
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Company: Gemini Energy more info
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