SEY.L Regulatory News (SEY)

29 Jun 2005 11:50

Sterling Energy PLC29 June 2005 29 JUNE 2005 STERLING ENERGY PLC ("Sterling" or the "Company") 2005 annual general meeting a TRANSFORMATIONAL year At today's Annual General Meeting, Mr Harry Wilson, Chief Executive of Sterling,made the following statement: "2004 was a successful and eventful year for Sterling and 2005 has begun in thesame fashion. A strong performance in 2004 on a broad range of financial and operationalfronts has transformed the company and its prospects. Notable achievementsduring the year were a 144% increase in operating cashflow to £8.1 million, adoubling of production to 10.2 million cubic feet gas per day ("mmcfge/d") and a450% increase in net 2P reserves to 21.6 million barrels oil equivalent ("mmboe"). The successful £97 million fund raising and acquisition of an equivalentc.8% economic interest in the Chinguetti development, offshore Mauritania,presages a step change for Sterling when the field comes on production in Q12006. This deal also positions Sterling as an innovative participant within oneof the world's most prospective hydrocarbon regions and cements a strongrelationship with the Mauritanian Government. In recent months we have brought more focus to our African operations throughthe disposal of non-core assets such as those in the Philippines and the farmoutof assets such as Dome Flore in the AGC to accelerate development and reducerisk. We are participating in an active drilling programme in Africa, much of it on acarried basis and our US programme aims to double production in the Gulf ofMexico by the year end. Earlier today we announced the successful recompletionof a well in our Eugene Island 268 license and the completion of a well in ourMustang Island license, both in the Gulf of Mexico. The first of these, onEugene Island, will shortly be on production and is expected to lift our Gulf ofMexico production by over 15%. The substantial boost in our cash flow from our share of the expected 75,000boepd of production from the Chinguetti development in 2006 and the continuedstrong commodity prices, will allow the Company to access many new opportunitiesfor growth. I do not expect any let up in the pace of our activities over thenext 12 months." All resolutions proposed at the AGM were duly passed. Enquiries Sterling Energy (01582 462 121) Web site: www.sterlingenergyplc.comHarry WilsonGraeme Thomson Citigate Dewe Rogerson (020 7638 9571)Martin JacksonNina Soon Evolution Securities (020 7071 4300)Rob CollinsHenry Turcan This information is provided by RNS The company news service from the London Stock Exchange