London-based junior explorer Sterling Energy is challenging the expiration of its first renewal period on the Ntem concession offshore Cameroon.
The firm declared a force majeure on the 100% owned Ntem concession in May 2014, due to its greatest area of potential laying in an area subject to overlapping maritime border claims by the Republic of Cameroon and the Republic of Equatorial Guinea.
It says, as a result of this, the original first renewal period, which would have expired 22 April, is effectively on hold and would be continue for the lapsed 10 months, when the force majeure is lifted.
However, the government of Cameroon did not recognize the force majeure and considers the First Renewal Period of the Ntem concession to have expired on 22 April 2015 and the Ntem concession to have lapsed.
Sterling says it has completed the minimum work obligations for the first renewal period by drilling of the Bamboo-1 exploration well in 1H 2014. It was this work that led to the conclusion that the area of greatest potential lay in an area subject to overlapping maritime border claims by the Republic of Cameroon and the Republic of Equatorial Guinea.
Sterling today says: “Sterling believes that, in accordance with the terms of the Ntem concession, it's declaration of force majeure on 6 May 2014 is valid. As such, the first renewal period has been suspended since 6 May 2014 and therefore has not expired. In the event force majeure is lifted, approximately 10 months remain in the first renewal period.”
Sterling’s CEO Eskil Jersing says: “Sterling is committed to working collaboratively with SNH and the Ministry of Industry, Mines and Technological Development of Cameroon to determine the forward plan for the Ntem Concession given the declaration of force majeure and the notice from the Ministry. We will update the market as appropriate in due course."
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