Sterling Resources sells Black Sea block portion to Exxon, OMV Petrom

Newsroom 19/10/2012 | 14:01

Canadian oil&gas firm Sterling Resources has reached an agreement with ExxonMobil and OMV Petrom for the sale of its 65 percent interest in a block portion in the Black Sea, in a bid to cut drilling and construction costs by focusing on fields in shallower waters.

The sold portion is located in the southeastern margin of the 15 Midia block, covering 125,000 gross acres, or 11 percent of the total area of the Midia and Pelican Concession. It is adjacent to the Neptun block containing the Domino-1 gas discovery made earlier this year by ExxonMobil and OMV Petrom.

“The consideration for the transaction payable to Sterling is USD 29.25 million upon completion, a contingent payment of USD 29.25 million upon satisfaction of certain conditions relating to a hydrocarbon discovery made on the Sale Portion, and a further contingent payment of USD 19.5 million upon first commercial production from the sale portion,” said the company in an official statement.

Sterling’s partner Petro Ventures Europe is also selling its 20 percent interest in the same block as part of the deal.

“This transaction is additional evidence of the rapidly growing industry interest in the Romanian Black Sea as a new hydrocarbon region where Sterling has a material presence,” said Mike Azancot, Sterling’s President and CEO