LONDON (ShareCast) - AIM-listed oil and gas exploration company Sterling Energy has received a two-year extension from the Somaliland government for its Odewayne production sharing contract (PSC).

The Republic of Somaliland has established an Oilfield Protection Unit (OPU), which is expected to provide the level of security required by the in-country operators for future drilling operations.

The group holds a 40% stake in the PSC onshore Somaliland, which covers 22,840 square kilometres, the firm anticipates the OPU to be working by the end of the year.

Sterling announced last month its Ntem concession, offshore Cameroon would be plugged and abandoned after it failed to find commercial hydrocarbons.

Chairman Alastair Beardsall said: "We are pleased with the progress in creating the Oilfield Protection Unit and look forward to commencing seismic operations in the Odewayne area as soon as possible.

“We thank the government of the Republic of Somaliland for granting the two-year extension to allow for the necessary preparations to be made for the future conduct of operations in a safe and secure manner."

As of 08:17 the share price had dropped 0.4% to 28.75p.

WS

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE