Under the terms of the agreement, Sterling Energy will acquire 10% stake in Odewayne block and pay Petrosoma $2m with future conditional payments of $8m based on various operational milestones being met, upon completion.
The PSC, which was awarded in 2005, includes block SL6 and part of blocks SL7 and SL10 onshore Somaliland, with an area of around 22,840km².
Odewayne block is expected to include Jurassic and Cretaceous zones, which are similar to productive basins in Yemen, according to the aeromagnetic and gravity survey.
The forward work program comprises acquisition of an extensive 2D seismic program in 2014 to develop drillable targets in the block.
Genel Energy Somaliland, a subsidiary of Genel Energy, is the operator of the Odewayne block with 50% interest, while Petrosoma owns 20% stake, and Jacka Resources Somaliland, a subsidiary of Jacka Resources owns 30% interest.
