Press

Sterling Energy - Update on Block C-10, Mauritania


Sterling Energy plc (Ticker Symbol: SEY), the AIM listed upstream oil and gas company with interests in Africa, announces that the Operator, Tullow and Sterling through its wholly owned subsidiary Sterling Energy Mauritania Limited ('SEML') have submitted a notice to not enter the Third Renewal Period in relation to Block C-10, offshore Mauritania and exit the block on the 29 November 2017.

Block C-10

The PSC, awarded in 2011, is in the second phase of the exploration period (‘Phase 2') and covers Block C-10, offshore Mauritania, comprising an area of approximately 10,725km2. Phase 2 of the PSC is will expire on 30 November 2017 and has a minimum work obligation of 1 exploration well.

Block C-10 lies in water depths of 50m to 2,400m with full legacy 3D seismic coverage. On entry in early 2015, Tullow had matured a drill ready Neocomian carbonate prospect in water depth of approximately 100m. The joint venture originally anticipated that an exploration well to test this prospect would be drilled in 2017, this will not be satisfied prior 30 November 2017.

The Operator, on behalf of the joint venture, has been negotiating with the Government to secure a one year extension through a new 3D survey. To date, the Government has stated that this work obligation proposal does not warrant an extension to the second term.

Subsequent, SEML has determined that whilst the acreage is prospective, there is insufficient commercial justification in entering Phase 3 (3 year term), with a minimum work obligation of 2 wells.

Given that the joint venture will not fulfil the minimum work obligation, the gross penalty payment due to the Government will be $7.5m ($1.125m net to SEML).

Comment

Eskil Jersing, the Company's Chief Executive Officer commented:

Our entry into the C-10 block, was prefaced on extensive subsurface work demonstrating potential for both untested inboard Neocomian carbonate and outboard Cenomanian to Albian plays, the latter proven by Kosmos. However, subsequent technical and economic modelling has not matured a viable hub scale opportunity on block.

We entered the acreage in early 2015, at low cost and capital exposure together with exit options that we felt were of the appropriate risk profile for the block potential. It is unfortunate that we have been unable to define commercially viable hub scale opportunities on the block in this exploration period.

As a result our relatively low cost exit of $1.125m net SEML is in-line with our consistently disciplined approach to exploration asset execution and capital allocation.

We would like to thank Tullow and Société Mauritanienne des Hydrocarbures et de Patrimoine Minier – SMHPM, for their partnership and support on the block.

Qualified Person In accordance with the guidelines of the AIM Market of the London Stock Exchange, Mr Anish Airi, Subsurface Manager of the Group, who has been involved in the oil industry for over 20 years, is the qualified person that has reviewed the technical information set out above. 



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

sterlingenergyuk.com/pdf/announcements/2017-11-02_...

AIMSterling EnergyMauritaniaAfricaTullowSEMLSterling Energy Mauritania Limited

More items from oilvoice


Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 3 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 7 months agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 7 months agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 8 months agoPress > CNOOCChina National Offshore Oil CorporationChevron +11

Total Announces the Distribution of its Second 2018 Interim Dividend

The Board of Directors met on December 12, 2018 and declared  the distribution of a second interim dividend for the 2018 fiscal year of €0.64 per share, in accordance with the Board's decision of July 25, 2018, an amount equal to the first 2018 interim dividend and an increase of 3.2% compared to t ...

OilVoice Press - OilVoice


Posted 8 months agoPress > TotalDividend
All posts from oilvoice