13th Sep 2005 07:01
Sterling Energy PLC13 September 2005 13 September 2005 STERLING ENERGY PLC ("Sterling" or 'the company") ACTIVITY UPDATE Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas explorationand production company, today provides an update of its global and corporateactivities. Gulf of Mexico The company has been only marginally impacted by Hurricane Katrina. Oneplatform, Eugene Island 268 which represents approximately 20% of Sterling'sproduction, was shut down for 5 days, and resumed production on 2 September2005. The company's facilities in the western Gulf of Mexico were not affectedand production has continued without interruption. Mauritania Following the recent change of government in Mauritania, Sterling is able toreport that it is continuing its operations there as normal. The company hasheld meetings with the new Minister for Energy and Petroleum and is confidentthat it will be able to build on its existing contract with the governmentrelating to the offshore Chinguetti development, expected on-stream in the firstquarter of 2006. Gabon Sterling is pleased to announce that the company has signed a TechnicalEvaluation Agreement for the Ibekelia licence. The agreement has been signedwith the Gabonese government and Sterling (40% interest & operator) Theagreement covers a 673 km2 area which is contiguous with the Gamba and Olowi oilfields and Sterling's existing Themis Marin and Iris Marin licences. Theevaluation term is 12 months at the end of which there is an option to convertto a full Production Sharing Agreement. Having reached a depth of 2035 m, the Iris Iboga Marin No 1 well penetrated over30 metres of excellent reservoir-quality sub-salt Gamba sandstones butunfortunately these were water bearing. Accordingly the well is now beingplugged and abandoned. A further exploration well is scheduled in the ThemisMarin license commencing in 1st quarter of 2006. Sterling will again be carriedfor most of its 20.57% working interest and will pay only 2.57% of the costs. Enquiries Sterling Energy (01582 462 121) Web site: www.sterlingenergyplc.comHarry WilsonGraeme Thomson Citigate Dewe Rogerson (020 7638 9571)Media: Rachel Lankester/George CazenoveAnalysts: Nina Soon Evolution Securities (020 7071 4300)Rob Collins / Henry Turcan This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SEY.L