Sterling considers drilling options offshore Madagascar

Sterling Energy has secured an extension to September 2015 for Phase 2 of the Ambilobe production-sharing contract (PSC) offshore Madagascar.

Jul 18th, 2014

Offshore staff

LONDON – Sterling Energy has secured an extension to September 2015 for Phase 2 of the Ambilobe production-sharing contract (PSC) offshore Madagascar.

The concession spans 17,650 sq km (6,915 sq mi) in theAmbilobe basin, a little explored area with identified Cretaceous and Tertiary leads.

Although the company and partner Pura Vida have no outstanding work commitments, they are looking to acquire a discretionary 3D seismic program during 4Q. The aim is to mature the best leads to one or more drill-ready prospects, as Phase 3 (if taken up) carries a commitment to drill an exploration well.

Additionally, Sterling is partner to ExxonMobil in Madagascar’s offshore Ampasindava license, which contains the high-risk but potentially 1.2-BbblSifaka prospect.

Sterling’s costs in the block are carried up to a fixed amount, but its share of costs for drilling Sifaka would exceed the remaining gross carry. The company is therefore looking to bring in another partner to shoulder the burden.

Processing is under way of newseismic data acquired over part of the Ampasindava block last year, and drilling could follow in 2015 or 2016. The PSC, awarded in 2004, is in Phase 3 of the exploration period that was recently extended to September 2015.

07/18/2014

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