6 Jun 2008 11:10
06 June 2008
STERLING ENERGY PLC
("Sterling" or the "Company")
2008 AGM STATEMENT
Sterling (symbol: SEY), an AIM listed independent oil & gas exploration and production company with interests in the Gulf of Mexico, Africa and the Middle East, held its AGM today.
Chairman, Dick Stabbins said:
"I look forward to an active 18 months during which we will focus on delivering results from some of our most exciting 'company making' prospects. In particular, we wish to realise the very significant potential of Kurdistan and Madagascar, where we are moving quickly towards drilling our first wells."
Chief Executive, Graeme Thomson said in his presentation that:
"Implementation of the newly adopted strategy of focusing the Company's resources on high impact opportunities in Africa and the Middle East is well underway and already delivering tangible results. This can be seen in the recent completion of farmouts and disposals which have contributed to the changing shape of our risk/reward profile and enhanced our cash flows.
"Sales of peripheral properties in the USA for $9 million in cash have recently been or are being completed and there have been six farmouts there. The disposal of all of the USA assets, which have averaged production of approximately 29 mmcfged in the year-to-date, is on track with a data room opening shortly and completion expected in Q4.
"A farmout of the 20-40 million barrel Charlie prospect in Gabon was completed yesterday for US$3.3m in cash, plus a carry covering a further 18% of Sterling's 32% share of costs for the well. This is due to spud in late June. Sterling also retains exposure to the upside of a successful drilling campaign and would be carried for approximately half of its costs in any second well there. This farmout could reduce Sterling's costs on these two wells by approximately US$10m.
"Development work in Mauritania is in progress on the Chinguetti field, with two well interventions having been completed. One further well intervention and two development wells are planned which are expected to double field production from its recent level of around 10,500 bopd. An appraisal well on Banda also was successful.
"Independent consultants have evaluated two of our prospects in Kurdistan and Madagascar and indicated unrisked best estimate net prospective resources of over 500 million barrels of oil, with an unrisked high net estimate of 1,900 million barrels of oil net to Sterling's current interests.
Seismic acquisition is planned for Kurdistan by the end of Q3 and drilling is anticipated to commence in 2009. A site survey is presently underway in Madagascar on a very large prospect and we expect drilling in 2009."
AGM Resolutions
Each of the resolutions proposed at the Annual General Meeting held today were approved by shareholders.
A copy of the presentation made at the AGM and of the Notice of Meeting is set out atwww.sterlingenergyplc.com
For further information contact:
Sterling Energy Plc (+44 20 7405 4133)
Graeme Thomson
Harry Wilson
Evolution Securities (+44 20 7071 4300)
Rob Collins
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
In accordance with the guidelines of the AIM Market of the London Stock Exchange, Andrew Grosse, B.Sc (Hons) Geology & Geophysics (1980), Exploration & Technical Director of Sterling Energy Plc, who has been involved in the oil industry for over 27 years, is the qualified person that has reviewed the technical information contained in this press release.