Sterling takes a stake in Mauritania

Tullow Oil is looking to drill on its Block C-10 acreage offshore Mauritania in 2016, according to Sterling Energy.

Sterling, which has just agreed to acquire a 13.5% stake in Block C-10 says Tullow has identified a drill-ready Neocomian carbonate prospect in about 100m water depth in the block. 

The joint venture anticipates that the exploration well will be drilled in 2016, at a cost of about US$77 million.

Tullow Currently holds 90% interest in the Block C-10 production sharing contract (PSC), with the Société Mauritanienne des Hydrocarbures et de Patrimoine Minier (SMHPM) holding the remaining 10%. 

Under the deal to acquire a 13.5% stake, Sterling will pay Tullow $50,000 in cash as consideration and in repayment of interim period costs.

Block C-10 PSC, which covers about 10,725sq km, was awarded in 2011, and is in the second phase of the exploration period. This will will expire on 30 November 2017 and has a minimum work obligation of one exploration well.

The block surrounds the Chinguetti field and lies in 50-2400m water depth with full 3D seismic coverage.

According to Sterling, the block lies within a proven petroleum basin and offers exposure to multiple play-types from the under-explored Jurassic and lower Cretaceous carbonates to Cretaceous and Tertiary clastic plays. Sterling says the potential for the extension of the Cenomanian and Albian plays recently established by the Tortue-1 well drilled by Kosmos in Block C-8 will be investigated on Block C-10.

Following the completion of Phase 2, the joint venture may elect to enter into Phase 3 (with a three-year term) with a minimum work obligation of two wells.

Eskil Jersing, Sterling's CEO, said: “We are very pleased to be joining Tullow and SMHPM in Block C10 in Mauritania, in addition to the recently announced inboard C3 block entry. We consider the block highly prospective with a drill ready prospect in an untested play segment. We look forward to working with Tullow in the exploration of this block on what is proving to be an exciting emerging margin.”