Sterling Resources Ltd. announces that it has signed a sale and purchase agreement with ExxonMobil Exploration and Production Romania (“EMEPR”) and OMV Petrom for the sale of its 65 percent interest in a portion of the Block 15 Midia in the Romanian Black Sea (the “Sale Portion”).
The Sale Portion is on the southeastern margin of the block, in deeper waters and covers 125,000 gross acres, or 11 percent of the total area of the Midia and Pelican Concession. It contains the newly determined Anca and Maria prospects and is adjacent to EMEPR’s and OMV Petrom’s deep water Neptun block containing the Domino-1 gas discovery well some 35 kilometres to the southeast. As part of the same sale agreement, Sterling’s partner Petro Ventures Europe BV is also selling its 20 percent interest in the Sale Portion.
The consideration for the transaction payable to Sterling is US$29.25 million upon completion, a contingent payment of US$29.25 million upon satisfaction of certain conditions relating to a hydrocarbon discovery made on the Sale Portion, and a further contingent payment of US$19.5 million upon first commercial production from the Sale Portion. Completion is subject inter alia to governmental approvals.
The sale does not include any of the discoveries or other prospects in the Midia block and will not be affected in any way by the results of the Ioana-1 well currently being drilled. The previously announced process for the partial divestment of Sterling’s interest in the Luceafarul, Midia and Pelican blocks continues, excluding the Sale Portion. The Company will now not be proceeding with the possible sale of its interest in the Cladhan field in the UK North Sea.
“This carve-out and sale of an area in deeper waters allows us to focus on the development and exploration of fields and prospects in shallower waters, where drilling and construction should be less expensive,” stated Mike Azancot, Sterling’s President and CEO. “This transaction is additional evidence of the rapidly growing industry interest in the Romanian Black Sea as a new hydrocarbon region where Sterling has a material presence,” added Mr. Azancot.
Press Release, October 22, 2012