Somalilandsun: Regional 2D seismic acquisition to cover the Odewayne block (and satisfying the minimum work obligation for the Third Phase) is planned as part of a larger government supported multiclient program with the Odewayne component currently scheduled to commence in H1 2017.
This large, unexplored frontier onshore acreage position comprises an area of 22,840km2. Exploration to date has been limited to the acquisition of airborne gravity and magnetic data, with no seismic coverage and no wells drilled on block. Extensive geological field data provide strong encouragement for the presence of a deep sedimentary basin and has highlighted the presence of oil seeps at the surface indicating a working hydrocarbon system is present.
The Odewayne production sharing agreement (‘PSA’) was awarded in 2005, and is in the Third Period with an outstanding minimum work obligation of 500km of 2D seismic. The Third Period was recently extended by two years (to 2 November 2018) in order to allow time for an Oilfield Protection Unit (‘OPU’) to be established. The minimum work obligation during the Fourth Period of the PSA (also extended by 2 years to May 2020) is for 1,000km of 2D seismic and one exploration well.
The Company’s wholly owned subsidiary, Sterling Energy (East Africa) Limited (‘SE(EA)L’), currently holds a 40% working interest in the PSA.
SE(EA)L is fully carried by Genel Energy for its share of the costs of all exploration activities during the Third Period and Fourth Period of the PSA but it retains a contingent liability to Petrosoma for $8.0 million (net to Sterling) when seismic and well related operational milestones are reached.
Regional 2D seismic acquisition to cover the Odewayne block (and satisfying the minimum work obligation for the Third Phase) is planned as part of a larger government supported multiclient program with the Odewayne component currently scheduled to commence in H1 2017.
This segment on Somaliland was part of the current Sterling Energy interim management statement
