Sterling Energy granted extension on Somaliland PSA

Sep 13, 2019

Sterling Energy has announced 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.’

The Odewayne Block covers a very large area (circa 22,000 sq km) onshore southwestern Somaliland, located adjacent to the border with Ethiopia. The PSC covers block SL6 and part of blocks SL7 and SL10.

Source: Sterling Energy