Citing a “challenging commercial landscape,” Sterling Energy PLC’s subsidiary Sterling Energy (UK) Ltd. announced its withdrawal from the Ambilobe block offshore Madagascar in April. The company also relinquished its operatorship, giving Pura Vida Energy 100% ownership of the block.
In a May 10 press release, Pura Vida announced it had renegotiated production-sharing terms with Madagascar. Part of its plan is to finalize interpretation of newly acquired 3D seismic data ahead of drilling projects in 2017.
Ambilobe block covers 20,800 sq km and lies at Madagascar's northwest tip. Most of the area is in less than 1,000 m of water. Sterling had held an interest in the block since 2004 (OGJ Online, Aug. 9, 2004) and recently completed 1,175 sq km of 3D seismic on the block.
According to Pura Vida’s press release, Ambilobe block is currently in Phase 2 of the PSC, which has been extended to January 2017. All work commitments for Phase 2 have been completed. The work commitments for Phase 3 include drilling one exploration well, and Pura Vida has the option to extend this work to January 2021.
The company plans to integrate its 3D seismic prestack depth migrated data with existing 2D seismic data, and it has already identified good quality prospects in the southern region of the survey area. Early interpretation has revealed a broad, structurally controlled fairway featuring multiple faulted anticlines, the company said. Four-way dip closures and trap sizes vary from 20 sq km to 65 sq km with up to 650 m vertical relief. The company expects to complete its data processing within 3-4 months, at which time it will begin a farmout campaign.
Sterling initially announced it complete its withdrawal in July but announced on May 9 that the process was final, leaving Pura Vida with operatorship and 100% interest in the block.
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