Sterling Energy Acquires 13.5% Stake in Block C-10 Offshore Mauritania
Sterling Energy plc (the Company), the AIM listed oil and gas exploration company, announced Wednesday that its wholly owned subsidiary, Sterling Energy Mauritania Limited (SEML), has signed a sale and purchase agreement with Tullow Mauritania Limited (Tullow) to acquire a 13.5 percent interest in the Production Sharing Contract for Block C-10 (the PSC), located offshore in the Islamic Republic of Mauritania (the SPA).
The current holders of the PSC are:
- Tullow Mauritania Limited (Operator) - 90 percent
- Societe Mauritanienne des Hydrocarbures et de Patrimoine Minier (SMHPM) - percent
Sale and Purchase Agreement
Under the terms of the SPA, on completion:
a) SEML will assume a 13.5 percent participating interest in the PSC from Tullow, including an entitlement to some of the past costs associated with the participating interest; and
b) SEML will pay Tullow $50,000 in cash as consideration and in repayment of interim period costs
Completion of the transaction remains subject to the approval by the Government of the Islamic Republic of Mauritania.
Following completion, the holders of the PSC will be:
- Tullow Mauritania Limited (Operator) - 76.5 percent
- Sterling Energy Mauritania Limited - 13.5 percent
- SMHPM - 10 percent
SEML will finance the acquisition through existing cash resources.
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