Sterling Energy signs farm-out deal for Madagascan block

1st Nov 2013 12:51

Sterling Energy, the AIM-listed independent oil and gas exploration and production company has signed a farm-out agreement for the production sharing contract (PSC) of the Ambilobe block, located offshore Madagascar, with Pura Vida Mauritius. Sterling currently holds a 100% interest in, and is the operator of, the PSC.Once the agreement has been completed, Pura Vida will assume a 50% interest and pay Sterling $1.25m towards past costs, and pay all the costs associated with the acquisition of 1,000km of 2D seismic, and 1,250 km sq of 3D seismic up to a maximum cost of $15m. Sterling Energy's Executive Chairman, Alastair Beardsall, said: "The Ambilobe area is considered to be highly prospective, but remains largely unexplored; the proposed seismic programme facilitated by the farmout will allow the partners to further investigate the potential of the Ambilobe Basin at no cost to Sterling." NR