(Ecofin Agency) - Sterling Energy plc has announces that it has formally surrendered the Ntem Concession, offshore Cameroon.According to the company, its wholly-owned subsidiary, Sterling Cameroon Limited, has issued a notice of surrender in relation to the Ntem Concession where it operates with 100% interest.

The AIM listed oil and gas exploration company revealed that the surrender will be effective by the end of December 2016 and it does not expect to incur any material costs associated with the surrender.“We are disappointed that we have been unable to reach an acceptable solution for all parties to advance operational activity on the Ntem Concession. Given the declaration of force majeure in May 2014, the remaining potential on the block and the challenging macro landscape, we have made the decision to formally surrender the Ntem Block. Our focus remains on securing transformative, exploitation led M&A opportunities,” Eskil Jersing (photo), the Company's Chief Executive Officer, told Oil Voice.

The Ntem concession area is a deep water block located in the southern Douala / Rio Muni Basin and lies close to the northern maritime border of the Rio Muni province of Equatorial Guinea. It is in water depths ranging from 400m to 2,000m, east to west across the block.

Sterling has also announced that it secured a renewal of an onshore Somaliland licence.

Anita Fatunji