Sterling: First Ampasindava Well Could be Drilled in 2015/16

January 13, 2014

Sterling Energy Plc, has provided an update on activities in its Ambilobe and Ampasindava Blocks, located offshore Madagascar.

A 1,314 km 2D seismic acquisition programme was completed on the Ampasindava Block in December 2013; the data will provide improved sub-surface imaging of the large Sifaka prospect and potentially mature additional prospects in the Ampasindava Block to drill-ready status. Processing of the new data has begun. Sterling Energy (UK) Limited holds a 30% interest in the Ampasindava PSC which is operated by ExxonMobil Exploration and Production (Northern Madagascar) Limited.

A proposal to extend the 2D acquisition programme into the Ambilobe Block would have provided only limited new data and therefore Sterling and its joint venture partner, Pura Vida Mauritius (“Pura Vida”), have commenced planning a 1,250 km² 3D seismic programme to be acquired in the second half of 2014 designed to identify a drilling location. Under the terms of the farmout agreement with Pura Vida, all costs associated with the acquisition of the 3D seismic programme, up to a maximum cost of US$15 million, are carried by Pura Vida. Sterling and Pura Vida each hold a 50% interest in the Ambilobe Block with Sterling as operator.

Sterling Energy Plc.’s Executive Chairman, Alastair Beardsall, said: “The new 2D seismic data acquired on Ampasindava will facilitate the planning for an exploration well which is expected to spud in 2015 /16. The more detailed 3D programme being planned for Ambilobe will focus on maturing some of the identified leads into potentially drill-ready prospects.”

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Press Release, January 13, 2014