Sterling Energy (LON:SEY) has agreed a deal to partner with Tullow Oil (LON:TLW) in an exploration project offshore Mauritania.
The AIM firm is to acquire a 13.5% stake in Block C-10 where the exploration obligations include the drilling of an exploration well before November 2017.
Tullow retains 76.5% interest in the project, while state firm Société Mauritanienne des Hydrocarbures et de Patrimoine Minier (SMHPM) has 10%.
Sterling Energy chief executive Eskil Jersing, in a statement, said: "We are very pleased to be joining Tullow and SMHPM in Block C10 in Mauritania, in addition to the recently announced inboard C3 block entry.
“We consider the block highly prospective with a drill ready prospect in an untested play segment.
“We look forward to working with Tullow in the exploration of this block on what is proving to be an exciting emerging margin."