(Alliance News) - Sterling Energy PLC on Friday said it has secured an extension to the Odewayne Production Sharing Agreement for the government of the Republic of Somaliland.
The licence will now expire on November 2, 2020, and has three extension options. If all the extension options are taken, then the licence will expire on May 2, 2024.
The company said the minimum work obligations for the exploration periods remain unchanged including acquisition of 500 kilometers of 2D seismic and an additional acquisition of 1,000 km of 2D seismic and one exploration well by May 2, 2022.
"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 fourth quarter of 2019," said Sterling Chief Executive Officer David Marshall.
Sterling owns 34% stake in Odewayne licence. Genel Energy PLC is the operator and 50% owner of the licence.
London-listed shares in Sterling were trading 4.2% lower at 9.34 pence each. Genel Energy shares were up 0.3% at 191.39p.
