Sterling Energy has agreed to acquire a 40.5% stake in the shallow water Block C-3 production sharing contract offshore Mauritania from Tullow Oil 's Mauritanian subsidiary.
Tullow currently holds a 90% stake in the license with Société Mauritanienne Des Hydrocarbures Et Du Patrimoine Minier (SMH) holding the remaining 10%.
The Block C-3 PSC was awarded in 2013 and is in the first phase of the exploration period. The block covers about 9800sq km. Tullow acquired 1600km 2D seismic in 2014, which will be processed during 2015.
Following completion of Phase 1, the joint venture may elect to enter into (a) Phase 2 and (b) Phase 3 (each with a three-year term) with a minimum work obligation of: (a) 700sq km of 3D seismic and one well; and (b) one well, respectively.
Sterling and Tullow will carry SMH’s 10% interest during the exploration period of the PSC.
Block C-3 is in an under-explored area of the Mauritanian shelf region that has seen very limited drilling and seismic acquisition, says Sterling.
Sterling said: "Block C3 provides Sterling entry to both a multiplay exploration setting and to an emerging shelf margin play, the latter recently highlighted by the SNE-1 well (P50 of 330 MMbbl) discovered by Cairn Energy to the south in Senegal."
Sterling Chairman, Alastair Beardsall, said: “We are very pleased to be joining Tullow in Block C3 in Mauritania, which we consider to be highly prospective. Block C-3 has an active work program and we look forward to working with Tullow in the exploration of this largely unexplored block.”