Sterling and Tullow to explore Block C10, off Mauritania

Sterling Energy plc has signed an agreement with Tullow Oil to acquire a 13.5% interest in the Production Sharing Contract for Block C-10, located offshore in the Islamic Republic of Mauritania. Sterling will acquire the stake including an entitlement to some of the past costs associated with the participating interest and will pay Tullow US$50,000 in cash as consideration and in repayment of interim period costs.

The current ownership of the PSC is: Tullow (Operator, 90%),  Societe Mauritanienne des Hydrocarbures et de Patrimoine Minier (SMHPM) (10%). Following completion, the ownership of the PSC will be: Tullow (Operator, 76.5%),  Sterling (13.5%), SMHPM 10%.

About Block C-10:

 The PSC for Block C-10 (10,725 sq km), awarded in 2011, is in the second phase of the exploration period. The current phase will expire on 30 November 2017 and has a minimum work obligation of 1 exploration well. The block surrounds the Chinguetti field and lies in water depths of 50m to 2,400m with full 3D seismic coverage.

Work Program:

In 2014, Tapendar-1 in Block C-10 was a dry hole and was plugged and abandoned. The operator has identified a drill ready Neocomian carbonate prospect in water depth of approximately 100m. The joint venture anticipates that the exploration well will be drilled in 2016. The gross cost of the well is anticipated at $77m. Following the completion of Phase 2, the joint venture may elect to enter into Phase 3 (with a 3 year term) with a minimum work obligation of 2 wells. Sterling and Tullow will carry SMHPM’s 10% interest proportionally during the exploration period of the PSC.