17th Mar 2014 13:41
LONDON (Alliance News) - Sterling Energy PLC said Monday its pretax profit increased in its full year 2013 despite a fall in revenues, as costs were reduced and the company received a one-off USD4.4 million payment.
The oil and gas exploration and production company said its pretax profit increased 33% to USD7.3 million from USD5.5 million the previous year, despite an 18% fall in revenues to USD18.4 million from USD22.5 million in 2012.
The company said its revenues fell as sales volumes lifted and sold during the year fell 17% to 2.2 million barrels from 2.6 million barrels in 2012, as a result of timing differences on the operator's 2013 lifting programme which varies from year-to-year.
However, Sterling said its cost of sales also fell 18% to USD9.8 million from USD12.0 million the previous year, and it reversed impairments of USD4.4 million on its Chinguetti asset, offshore Mauritania, following a flatter production decline rate than expected and an associated field life extension.
The company added that its full-year production increased 0.8% to 527 barrels of oil per day from 523 barrels the previous year, despite a production shut down for 6.5 days to replace a broken mooring chain.
In February, the company announced that drilling operations began at its Bamboo-1 well at the Ntem Concession, offshore Cameroon, targeting a primary resource objective estimated to have a mean un-risked, gross prospective resource of 450 million barrels of oil equivalent.
On Monday, Sterling Energy said a positive outcome from drilling at Bamboo-1 will transform the company but, even if it does not identify commercial hydrocarbons, it has the funds to progress its other projects in Madagascar and Somaliland and to acquire others.
The company added that it continues to seek new opportunities and the acquisition of 2D seismic in the Odewayne block, Somaliland, will further its understanding of the potential of the site, possibly leading to an exploration well in 2015.
Sterling Energy shares were up 0.5% to 47.50 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
SEY.L