AIM listed Sterling Energy Plc announces 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."