By John Lee.
Sterling Energy Plc has announced the following updates in the Sangaw North Production Sharing Contract ("PSC") in Kurdistan:
2D Seismic Acquisition:
The acquisition of 2D seismic data in the Sangaw North PSC, which commenced in July, has now been completed. 117 km of data was successfully acquired and is now being processed, with final results expected in the fourth quarter of 2012.
Interpretation of the new seismic data, which supplements the 2D seismic data previously acquired in the contract area, is expected to better define the potential of a secondary target along the flank of the main structure, analogous to the recent discoveries made in adjacent acreage to the south east of the Sangaw North PSC area. Based on this interpretation, the joint venture partnership may elect to drill an exploration well in 2013.
Change of Interests:
The Korean National Oil Corporation (KNOC) has assigned its 20% working interest in the Sangaw North PSC back to the Kurdistan Regional Government of Iraq (KRG) effective 5 August 2012; the interest was first assigned to KNOC on 12 September 2008, at the option of the KRG under the terms of the PSC.
Under the terms of the current assignment, from the effective date the future exploration costs associated with this 20% interest will be paid by the remaining contractor entities in proportion to their equity interests; consequently, Sterling's paying interest in the PSC has increased from 53.33% to 66.67% and Addax's has increased from 26.67% to 33.33%, while their equity interests remain unchanged at 53.33% and 26.67% respectively.