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(Image courtesy of Sterling Energy)

Sterling Energy reported Wednesday that it has received consent from the Government of Madagascar for a farm-out transaction involving its production sharing contract over the offshore Ambilobe Block.

The farm-out agreement that has now been executed, sees Sterling retain 50 percent of its interest in the Ambilobe Block, while Pura Vida Mauritius has acquired the other 50 percent of the block.

Executive Chairman of Sterling Alastair Beardsall said in a company statement,”We are very pleased to complete the farm-out process. The Ambilobe area is considered to be highly prospective, but remains largely unexplored. We are planning to acquire new seismic data as part of our 2014 work program to further investigate the potential of the Ambilobe Basin. Sterling’s share of the seismic costs will be paid by Pura Vida.”