Sterling Energy plc Ntem Block Farmout
Thursday, November 3, 2011
- Farmout agreement completed withMurphy Cameroon Ntem Oil Co.
Sterling, the independent oil and gas exploration and production company with interests in the Middle East and Africa, is pleased to announce the following update for the Sterling operated Ntem block in Cameroon.
Sterling has completed a farmout agreement with Murphy Cameroon Ntem Oil Co., Ltd "Murphy", a wholly owned subsidiary of Murphy Oil Corporation under which Murphy has been assigned a 50% working interest in, and operatorship of, the Ntem concession contract (the "Contract"). Sterling retains a 50% non-operated working interest in the Contract. As consideration, Murphy has paid to Sterling a contribution towards past costs and is committed to fully fund joint operations in relation to the current phase of exploration under the Contract which includes the drilling of one exploration well.
Ntem is a deep water block with water depths ranging from 400 metres to 2,000 metres across the block. The work programme is currently suspended under the force majeure provisions of the concession due to an overlapping border claim between Cameroon and Equatorial Guinea. The Company believes that both countries are working to resolve this issue.
Angus MacAskill, Sterling's Chief Executive said:
"We are very pleased to welcome Murphy, a successful international explorer and deep water operator, as our partner for the Ntem block and look forward to recommencing exploration operations once the overlapping border claim has been settled."
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