SEY.L Regulatory News (SEY)

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

18 February 2021

Sterling Energy plc

Changes in major shareholdings

Board appointments

Sterling Energy plc ('Sterling' or the 'Company') an upstream oil and gas company listed on the AIM market of the London Stock Exchange (Ticker Symbol: SEY) announces that the Company has been informed that that Waterford Finance & Investment Limited and Mistyvale Limited have agreed to sell their shareholdings in the Company (representing 29.23% and 15.66% of the issued share capital respectively).

The Company also confirm that it has provisionally agreed to appoint Paul McDade, the former CEO of Tullow Oil plc, and Ian Cloke, the former EVP at Tullow Oil plc, as executive directors of the Company. Paul and Ian have extensive experience and knowledge of identifying and developing oil and gas assets in West Africa and intend to refocus the Company's strategy on producing assets in this region.

Change in major shareholders

The Company has been advised that Waterford Finance & Investment Limited ("Waterford") has agreed to sell 64,315,517 ordinary shares in the Company (equating to its entire 29.23% shareholding in the Company) and that Mistyvale Limited ("Mistyvale") has agreed to sell 34,467,790 ordinary shares in the Company (equating to its entire 15.66% shareholding in the Company).

The Company and Waterford were parties to a Relationship Agreement dated 10 June 2016 which governed the appointment of Mr. Michael Kroupeev to the Board in May 2016. Following the sale of Waterford's ordinary shares in the Company as set out above, the Relationship Agreement has automatically terminated.

The Company understands that a number of institutional and high net worth investors have agreed to purchase the shares being sold by Waterford and Mistyvale. Following the sale, neither Waterford nor Mistyvale will hold any interest in any ordinary shares in the Company.

New directors

Paul McDade: A Petroleum engineer who has over 35 years' experience in the oil & gas industry gaining broad operational, commercial and management experience in the North Sea, Latin America and Africa. He joined Tullow Oil in 2001 and was a one of the Executive team who built Tullow Oil to be Africa's leading independent oil & gas company, initially as COO and latterly as CEO, before retiring from this role in December 2019.

Ian Cloke: A Geoscientist who has over 25 years' experience in the oil and gas industry gaining broad, technical, operational, commercial and management experience in Africa, North & South America, the North Sea and South East Asia. He joined Tullow Oil in 2005 after 10 years at ExxonMobil and built operated businesses across the group as a key member of the leadership team and latterly as EVP New Ventures Business, before leaving in September 2020.

The appointments of Paul McDade and Ian Cloke as directors remain subject to formally confirming shareholder opinions, pre-appointment due diligence and the approval of the Company's nominated adviser. A further announcement will be made in due course.

Company update

As at 30 November 2020, the Company had cash reserves of $42.9 million (unaudited), with expenditure in the ordinary course of business since 30 November 2020.

The Company's CEO, Mr. Tony Hawkins, said:

"I'd like to recognise the contributions of Waterford and Mistyvale to the stability of the Company over a number of years. Waterford and Mistyvale have been cornerstone investors in the Company since 2009, when they helped re-capitalise the Company so that it could drill exciting exploration wells in Kurdistan and Cameroon, manage and cleanly exit its joint ventures in Madagascar and Mauritania (including the Chinguetti oil field) and enter into a fully funded carry for the Odewayne block in Somaliland. 

We look forward to working with our new shareholders and our existing shareholders to reconstitute the Board and move forward with a refreshed strategy for the business. We will update the market as to each of these items in due course."

For further information contact:

Ticker Symbol: SEY

Sterling Energy plc +44 (0)20 7405 4133

www.sterlingenergyplc.com

Tony Hawkins, CEO

Leo Koot, Senior Independent Director

Peel Hunt LLP (Nominated Adviser) +44 (0)20 7418 8900

Richard Crichton

David McKeown