Sterling Energy said unfortunately Bamboo-1, its first exploration well drilled on the Ntem Block, failed to find commercial hydrocarbons and has been plugged and abandoned.
“Fortunately the well was drilled at no cost to Sterling,” it said.
Sterling holds material interests in three deep-water exploration blocks, one in Cameroon and two in Madagascar, and in one onshore block in Somaliland.
“We continue to work with our joint venture partners to deliver exploration programmes for all of these blocks to test for hydrocarbon potential,” the company said.
Meantime, the company said production, net to Sterling from the Chinguetti field, averaged 400 barrels of oil per day (bopd) for Q1 2014 (Q1 2013: 568 bopd) reflecting normal field decline, and 10 days no production during scheduled maintenance work.
Adjusted Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) in Q1 was $2.1m (Q1 2013: $2.4 million). Q1 profit after tax was $0.49m, from $0.13m a year earlier. At March 31, Sterling had cash of $121.3m, including partner funds of $1.1m.
At 9:50am: [LON:SEY] Sterling Energy PLC share price was +0.13p at 28.5p