Sterling Energy Issues Half-Year Results

By John Lee.

Sterling Energy has announced its results for the six month period ending 30 June 2012.

(Picture: Surface oil seeping from the ground at Sterling Energy’s Sangaw North block)

Summary

  • Cash as at 30 June 2012 of $114.4 million ($112.9 million net of partner funds), no debt. $7.1 million expected in July from sale of Chinguetti cargo lifted in June.
  • Group turnover increased to $14.0 million (H1 2011: $9.5 million).
  • Profit after tax of $4.7 million (H1 2011: $6.5 million).
  • Average net Group production decreased to 501 bopd (H1 2011: 626 bopd) as a result of two unplanned production shutdowns.
  • Cash flow from operations of $0.7 million (H1 2011: $5.8 million).

Prospects and Outlook

  • In the Ntem concession, a large block offshore Cameroon, operatorship has been transferred to Murphy, following the farm-out in 2011. The block remains in force majeure awaiting the resolution of the maritime border dispute between Cameroon and Equatorial Guinea. Sterling has identified several prospects with each estimated to have gross un-risked prospective recoverable resources of multiple hundreds of million barrels, and the operator has indicated the potential for exploration well drilling in 2013, subject to the status of the border dispute.
  • In Madagascar, Sterling has made significant progress in discussions with OMNIS, the state agency managing the petroleum resources of Madagascar, and expect to resume exploration activities in the Ampasindava and Ambilobe licenses by early 2013. The large Sifaka prospect in the Ampasindava block is expected to be drilled in 2014 or 2015.
  • In the Sangaw North block, the acquisition of 130 km of 2D seismic has commenced and is expected to be completed by the end of August. Evaluation of this data may support the drilling of an exploration well in 2013.
  • In the Chinguetti field, offshore Mauritania, production was re-established following the two unplanned shutdowns in the first quarter. Production during the second quarter supports the lower decline rate previously observed.
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