25th Apr 2016 09:43
LONDON (Alliance News) - Upstream oil and gas company Sterling Energy PLC Monday said its loss widened in the first quarter of 2016, as production from its Chinguetti field in Mauritania fell due to temporary flow assurance issues.
This issues are no longer affecting production, and this has returned to normal levels, Sterling said.
Chinguetti product averaged 106 barrels of oil per day, compared to 382 barrels of oil per day the previous year.
The company reported a pretax loss of USD5.0 million, widened from a pretax loss of USD815,000 the year before, on revenue of USD725,000, from from USD1.7 million.
This was partly due to an impairment related to the Block C-3, offshore Mauritania, after Sterling opted to withdraw from a joint venture on the block in January.
Elsewhere, Sterling continues work with its joint venture on the Block C-10, offshore Mauritania and surrounding the Chinguetti field.
In Madagascar, Sterling's joint venture is currently seeking an extension at the Ambilobe block in order to complete a subsurface technical evaluation. In Somaliland operational activities continue to be delayed, Sterling said, but a regional 2D seismic acquisition programme is currently scheduled to begin in the second half of 2016.
"Sterling continues to maintain a disciplined approach to new venture activities, only pursuing and executing those growth options that the company believes to have the best opportunity to ultimately deliver value for shareholders," the company said in a statement.
Shares in Sterling were untraded Monday morning. They last closed at 16.25 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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