25th Apr 2014 11:57
LONDON (Alliance News) - Sterling Energy PLC Friday said its post-tax profit in its first quarter increased but its revenues fell as production was hit by expected declines and scheduled maintenance.
The oil and gas exploration and production company said its post tax profit for the three months ended March 31 increased to USD489,000 from USD130,000 the previous year due to reduced administrative overhead costs and currency translation gains.
However, the company said its revenues fell 38% to USD3.5 million from USD5.6 million as production from its Chinguetti Field in Mauritania fell 30% to 400 barrels of oil per day from 568 barrels due to normal field decline and 10 days no production during scheduled maintenance work.
Sterling Energy also said that it continues to progress its new venture evaluations and in addition to focusing on its core area of sub-Saharan Africa, evaluation of opportunities in new geographic regions is underway.
The news comes after Sterling Energy announced earlier in the month that drilling at its key Bamboo-1 well at the Ntem Concession, offshore Cameroon, had failed to find commercial levels of oil and gas.
The company said at the time that the Bamboo-1 well, the first to be drilled on the site, reached a total depth of 4,747 metres and, after analysis of the data, the well found no commercial hydrocarbons and was plugged and abandoned.
Sterling Energy shares were up 1.3% to 28.75 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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