Sterling Exits Madagascar
AIM-listed Sterling Energy said April 28 it has issued a notice of withdrawal from the Ambilobe block offshore Madagascar to its 50-50 joint venture Australian-listed partner Pura Vida and will cease to be the block's operator. The withdrawal is anticipated to be completed by the end of July 2016; Sterling does not expect to incur any material costs from the move.
CEO Eskil Jersing said: "Sterling has held an interest in the Ambilobe Block since 2004 and recently completed a fully carried 1,175km2 discretionary 3D survey in 2015. Given the challenging commercial landscape, we have made the disciplined decision to exit, focusing on shorter cycle revenue generating assets. We wish Pura Vida and [Madagascan state agency] Omnis all the best for the future in unlocking the remaining potential on the Ambilobe Block." Under a 2013 farmout deal to Pura Vida, it bore all seismic costs up to a maximum of $15mn (gross).
Sterling has talked of drillable prospects and organic-rich shales on the block, but it was unclear whether these were of oil and/or gas.
ExxonMobil quit exploration offshore Madagascar last year, relinquishing its stakes in the Ampasindava, Cap Sainte André Offshore, and Majunga Offshore Profond blocks in December. At the latter, Exxon as operator is understood to have relinquished on behalf of all licensees; Shell/BG which held a 30% interest in Majunga Offshore Profond confirms it no longer has any interest in the licence or offshore Madagascar.
Offshore northwest Africa, Sterling last month withdrew from shallow water C-3 offshore Mauritania, but retains a 13.5% interest in Tullow-operated deepwater C-10 block and is pinning its hopes on finding gas or oil deposits similar to those recently found by US Kosmos and UK Cairn in the region.
Mark Smedley