Sterling Says Madagascar Government Approves Extension for 2 Offshore PSCs
Sterling Energy Plc, the AIM listed oil & gas exploration company (Sterling or the Company), provided Monday an update on activities in its Ambilobe and Ampasindava Blocks, located offshore Madagascar.
Ministerial and Presidential approval was granted in October 2014 to extend the current phase of both the Ampasindava and Ambilobe Production Sharing Contracts (PSC) to July 2016 and these approvals have now been formally published in the Official Gazette of Madagascar, which is the final step in the approval process.
The Ambilobe PSC, awarded in 2004, is in Phase 2 of the Exploration Period with all minimum work commitments for the current phase completed. In December 2013, Sterling completed a farm-out agreement with Pura Vida Mauritius (Pura Vida) under which all costs associated with the acquisition of a discretionary 3D seismic program, up to a maximum of $15 million, are carried by Pura Vida. Sterling and Pura Vida each hold a 50 percent interest in the Ambilobe Block with Sterling as operator. Sterling and Pura Vida continue with planning of the 3D seismic program which is expected to commence in March.
The Ampasindava PSC was awarded in 2004 and is in Phase 3 of the Exploration Period. Sterling holds a 30 percent non-operated working interest and it is operated by ExxonMobil Exploration and Production (Northern Madagascar) Limited (ExxonMobil), who hold a 70 percent working interest. Under the terms of the farm-in by ExxonMobil in 2005, Sterling’s share of exploration costs in this block is carried up to a fixed gross amount.
Details of the Ambilobe and Ampasindava PSCs can be found in Sterling’s Investor Presentation which can be viewed on the Company’s website at www.sterlingenergyplc.com.
The Company’s Executive Chairman, Alastair Beardsall, said:
“We are pleased to receive approval for the extension of the current periods on both the Ambilobe and Ampasindava Blocks. Work continues on understanding the sub-surface potential of these two very large, undrilled exploration areas.’’
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