Sterling Energy to farm out Iris Marin interest

Sterling Energy has conditionally agreed to farm out an 18% interest in the Iris Marin PSC, offshore Gabon.

Offshore Staff

LONDON -- Sterling Energy has conditionally agreed to farm out an 18% interest in the Iris Marin PSC, offshore Gabon. The company will retain a 32% interest in the PSC.

Sterling's interest in Iris Marin is held through two group companies. Sterling will reduce its interest through the sale of its wholly owned subsidiary, Sterling Energy (Iris Marin), which holds an 18% interest in the PSC. As part of the conditional sale to an existing partner, Addax Petroleum Overseas, Sterling has received $3.3 million in cash and will be carried for well costs on an 18% interest in up to two wells on the PSC. Sterling will also transfer operatorship.

The ICM-1 exploration well on the Charlie prospect on Iris Marin is due to spud in late June. The well will test a target of 20-40 MMbbl of oil. The company's initial estimates are that an 8 MMbbl find could be commercial.

06/05/2008

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