Somaliland:Sterling Energy Secures Extensions To Odweyne Licence

Horndiplomat-Sterling Energy Officially announced government of Somaliland has granted a continued extension to the current period of the Odewayne Production Sharing Agreement (“PSA”).

The following statement was issued today by the Sterling Energy. 

Sterling Energy Plc (“Sterling” or the “Company”), the AIM listed oil and gas exploration company with a high potential exploration asset in Somaliland and an active strategy to deliver shareholder value through disciplined, exploration and production projects, is pleased to announce that the Government of the Republic of Somaliland has granted a continued extension to the current period of the Odewayne Production Sharing Agreement (“PSA”).

The expiry dates of the relevant exploration periods under the PSA shall now be:

Third Period: 2 November 2020;

Fourth Period (optional): 2 May 2022;

Fifth Period (optional): 2 May 2023; and

Sixth Period (optional): 2 May 2024.

The minimum work obligations for the exploration periods remain unchanged: (i) the acquisition of 500km of 2D seismic during the Third Period; and (ii) the acquisition of 1,000km of 2D seismic and one exploration well during the Fourth Period.

Sterling holds a 34% interest in the PSA and will be carried by Genel (50% interest and Operator) for the costs of all exploration activities during the Third and Fourth Periods of the PSA.

David Marshall, the Company’s Chief Executive Officer said: “We would like to thank the Government of the Republic of Somaliland and Genel for agreeing to a continued extension. Sterling continues to support the operator during the reprocessing of the full 2D seismic dataset and we look forward to receiving the final deliverables in Q4 2019.”