Jacka Resources Somaliland has received government approval for the completion of a farmout agreement with Sterling Energy (East Africa) for the Odewayne Block production sharing contract (PSC) onshore Somaliland
The Odewayne Block covers 22,000 sq km, located adjacent to the border with Ethiopia. The PSC covers block SL6 and part of blocks SL7 and SL10.
Upon the completion of the agreement, Jacka Resources Somaliland will be paid an aggregate amount of up to US$12mn by Sterling Energy upon the achievement of operational milestones linked to the minimum work programme in the third and fourth periods of the PSC, the company said.
Sterling Energy will take over a 15 per cent interest in the PSC from Jacka Resources Somaliland upon completion.
The partners in the PSC include operator Genel Energy Somaliland with a 50 per cent interest and Jacka Resources Somaliland carrying a 15 per cent share. Sterling Energy (East Africa) and Petrosoma own 25 per cent and 10 per cent interest, respectively.