Sterling Energy plc’s wholly owned subsidiary, Sterling Energy Mauritania Ltd. (SEML), has signed a sale and purchase agreement (SPA) with Tullow Mauritania Ltd. to acquire a 13.5% interest in the production sharing contract (PSC) for Block C-10, located offshore in the Islamic Republic of Mauritania.
Under the terms of the SPA, on completion, SEML will assume a 13.5% participating interest in the PSC from Tullow, including an entitlement to some of the past costs associated with the participating interest; and SEML will pay Tullow $50,000 in cash as consideration and in repayment of interim period costs.
Completion of the transaction remains subject to the approval by the Government of the Islamic Republic of Mauritania.
Following completion, the holders of the PSC will be Tullow, 76.5%; Sterling Energy Mauritania Ltd., 13.5%; Societe Mauritanienne des Hydrocarbures et de Patrimoine Minier, 10%.
SEML will finance the acquisition through existing cash resources. Tullow Mauritania Ltd. is a subsidiary of Tullow Oil Plc.