LONDON (Alliance News) - Sterling Energy PLC said on Wednesday its loss narrowed substantially in the third quarter as it exited from the Chinguetti field in Mauritania.
Post-tax profit narrowed sharply to USD306,000 from USD4.3 million the year before. Revenue for the period was nil, due to have no longer having producing assets, from GBP1.8 million a year prior.
Sterling Energy is currently working on the Odewayne exploration block in Somaliland, in which the company has a 34% interest. No wells have been drilled on block, with exploration activity limited to the acquisition of airborne gravity and magnetic data.
Three seismic lines of 235 kilometres in length have been processed to a full pre-stack time migrated dataset, with the option to process the remaining 13 lines of data in place.
This workflow is exacted to produce an informed technical and commercial perspective on the block by the second half of 2018.
Discussions are currently ongoing with the joint venture partners on further developing the technical understanding of the block.
In addition, Sterling Energy appointed GMP FirstEnergy as co-broker with immediate effect, in order to bring the company closer to an acquisition.
"Technical understanding of the Odewayne exploration block continues, with the initial 3 trial seismic lines increasing the imaging quality. Discussions with the JV on the progression of the block are ongoing and updates will made at the appropriate time," said Chief Executive Officer David Marshall.
"We have a clear strategy and can move quickly and decisively for the right opportunity, leveraging our full cash balance of USD47 million and technical capabilities to good effect. We remain very focused on finding a suitable acquisition," Marshall added.
Shares in Sterling Energy were up 3.1% at 11.50 pence on Wednesday.
