Ok, so why is Matamata taking so long?! Just imagine what it...

Ok, so why is Matamata taking so long?! Just imagine what it would do for HDR's sp if Exxon became a partner!

Mind you, they have taken 70%!!

Sterling, the AIM listed (symbol: SEY) independent oil & gas exploration and
production company, announced today that it has signed a farm-out deal with
ExxonMobil for the Ambilobe and Ampasindava offshore licences in Madagascar.



Sterling was granted a 100% interest and operatorship of the two licences which
were signed in July 2004 and formally ratified in November 2004. The licences
cover approximately 20,800 sq km and 13,147 sq km, respectively of the Ambilobe
and the Majunga Basins. The total exploration licence term in each licence is 8
years and in the event of a commercial discovery a 25 year production licence
will be granted.



Under the terms of the deal with Sterling, ExxonMobil will pay for a significant
exploration work programme in return for a 70% interest in the licences. The
agreement is subject to certain milestones being achieved with the initial
ExxonMobil commitment for the first two exploration phases under the licence
covering technical studies and 2D seismic. Assuming a positive outcome of this
initial work, which could take up to a further 3 years, ExxonMobil will then
finance 3D seismic and up to two wells per licence. The transaction remains
subject to approval of the Government of Madagascar.