The Ntem Block, offshore Cameroon, remains in force majeure. Progress continues towards a resolution of the border dispute between the governments of Cameroon and Equatorial Guinea, but no specific timetable can be forecast. The Company currently holds 100% of the Ntem licence and expects to farmout a portion of its interest in exchange for being carried for its share of drilling costs.
The Rajoelina government, formed after the coup in March 2009, has not been recognised by its African neighbours or by many other governments. Sterling and ExxonMobil, our partner and the operator of the Ampasindava Block, will look for an improvement in the political situation before undertaking any significant expenditure.
The current exploration periods for both the Ambilobe and Ampasindava licences come to an end in November 2010. Sterling and Exxon are in discussions with OMNIS, the state oil company of Madagascar, with regard to an extension of both licences.
Production from the Chinguetti field during the third quarter 2010 net to Sterling totalled 57,097 barrels, an average of 621 barrels of oil per day. There are no currently approved plans for further development of the Chinguetti field.
In the third quarter of this financial year, Sterling reports the following unaudited results:
|$ '000||$ '000|
|Revenue from oil sales||6,183||22,709|
|Profit / (Loss) after tax||3,143||(31,632)|
|Cash and cash equivalents at period end||(2)||109,407||113,859|
(1) EBITDA is earnings before interest (and other finance income and costs), tax, depreciation, depletion, amortisation and write-offs of oil & gas assets. Adjusted EBITDA is calculated before share based payments, charged to the income statement under IFRS 2.
(2) Cash balances at the end of Q3 2010 totalled $109.4 million, including $6.4 million of partner funds, (year end 2009: $113.9 million, including $6.9 million partner funds). The Group continues to remain debt free.
(3) FY 2009 figures are for the continuing operations only and excludes, in particular, the results for the USA business that was sold in December 2009
Change of Auditor
Following a competitive tender process for audit services, BDO LLP has been appointed as auditors of the Sterling group of companies.
For further information contact:
Sterling Energy Plc +44 (0)20 7405 4133
Alastair Beardsall, Executive Chairman
Jonathan Cooper, Finance Director
Evolution Securities +44 (0)20 7071 4300
Rob Collins / Chris Sim