Somaliland:Sterling Energy announces results for first half of 2016
Sterling Energy plc, together with its subsidiary undertakings, an upstream oil and gas company listed on the AIM market of the London Stock Exchange (Ticker Symbol: SEY) today announces its results for the six month period ending 30 June 2016.
Sterling is an experienced operator of international licences, with a primary focus on Africa. The Group has high potential exploration projects in Mauritania, Somaliland and Cameroon together with a production interest in Mauritania.
- Cash as at 30 June 2016 of $92.5 million ($92.4 million net of partner funds), no debt.
- Group turnover of $1.3 million (1H 2015: $3.6 million).
- Loss after tax of $8.2 million (1H 2015: loss $1.5 million).
- Average net Group entitlement to production of 214 bopd (1H 2015: 358 bopd).
- Adjusted EBITDAX loss of $1.7 million (1H 2015: loss $1.5 million).
- Recent production performance for the Chinguetti field, offshore Mauritania has been consistent with the operator’s projected 2016 forecast. The depressed oil price continues to have an onerous impact on the Chinguetti project and future joint venture economics. Discussions continue amongst respective stakeholders with the objective to execute an agreed and effective field decommissioning plan, following cessation of production, which is currently envisaged to be in late 2016/ early 2017.
- In Mauritania, block C-10, the joint venture have been maturing the prospect and lead inventory to inform the selection of a drilling candidate to meet the well commitment due by November 2017. Work has focused on the range of play types present within C-10 and in particular developing the Cenomanian play proven by Kosmos Energy in their deepwater Mauritanian acreage.
- In Somaliland, Sterling’s interest in the large onshore Odewayne PSC block is carried by Genel Energy Somaliland Limited (‘Genel’) for all exploration costs during the current third, and subsequent fourth exploration period. The joint venture plans to acquire 2D seismic data in late 2016, early 2017.
- In Mauritania, Sterling completed its withdrawal from the C-3 Block, effective 16 March 2016.
- In Madagascar, Sterling completed its withdrawal from the Ambilobe Block, effective 9 May 2016.
- In Cameroon, on the Ntem block, given the lack of progress with SNH and the declaration of force majeure, forward plans on the block are currently under review.
- On 11 May 2016 the Company announced that its Executive Chairman Alastair Beardsall would be retiring from the Company with immediate effect after six years of service for personal reasons.
- On 11 May 2016 Nicholas Clayton, who joined the Sterling Energy board as a Non-Executive Director in October 2009, was appointed by the Board to succeed Mr Beardsall in the position of Non-Executive Chairman.
- On 11 May 2016, the Company appointed Mr Michael Kroupeev as a Non-Executive Director of Sterling Energy.
- On 25 April 2016, the Company held its 2016 Annual General Meeting at which all shareholder resolutions were passed.