The Chinguetti field offshore Mauritania continued to produce oil at an average rate of 501 barrels per day during the reporting period. The positive cash flow from Sterling’s share of production exceeds the Company’s general and administration costs and makes a contribution to operations.
The Company has many assets including its staff, a strong balance sheet, a share of production that generates positive cash flows and some excellent exploration assets. We shall endeavour to employ all of these to generate value for our shareholders.
Kurdistan, Iraq – Sangaw North
A programme to acquire 130 km of 2D seismic data is currently underway in the Sterling operated Sangaw North block (53.33% WI). The acquisition of data commenced in early July and is expected to be completed in August. The survey is being acquired along the flanks of the major structure that was previously tested by the Sangaw North-1 exploration well in 2011 and found to contain non-commercial quantities of hydrocarbon gas.
The additional 2D seismic data is being acquired to better define the potential of a secondary target, analogous to the recent discoveries made by Talisman and Western Zagros in adjacent acreage to the south east of the Sangaw North block, along the flank of the main structure.
In the event that the additional 2D seismic data supports this secondary target, the joint venture partnership may elect to drill an exploration well in 2013, during the remainder of the second sub-period of the exploration phase of the Sangaw North PSC which extends to November 2013.