24th Jul 2007 11:14
Sterling Energy PLC24 July 2007 24 JULY 2007 STERLING ENERGY PLC ("Sterling" or the "Company") 2007 ANNUAL GENERAL MEETING At today's Annual General Meeting, Mr Richard O'Toole, Chairman of Sterling,made the following statement: "Sterling has made a good start to 2007 with the $145 million purchase of theissued share capital of NASDAQ listed Whittier Energy Corp. ("WEC"), completedat the end of March, successful US drilling, an increase in its interests in itsGabon licences and a new well commitment there in 2008. Net sales in the first half of 2007, which includes WEC for 3 months only, areestimated at 4,900 boepd, up 5% from the equivalent period in 2006. The USAaccounted for an average of 3,200 boepd in the first half of 2007 and iscurrently producing at approximately 4,700 boepd, which is 10% higher than theend March level. I am pleased to report success with the drill bit in the US. Our operationsthere have had a success rate of 17 in 20 wells drilled in calendar 2007. Ofthese eleven are on production, three were non-commercial and six awaitcompletion. Our first horizontal Austin Chalk well (42.5% net revenue interest"NRI") has recently been brought onstream at a net rate of over 2 mmcfged (330boepd). We now have three rigs drilling, including a second Austin Chalk well(19.6% NRI). Our 17,900 ft Thunder Stud well (15% working interest) has beendrilled and production casing has been set; testing is planned over a period ofapproximately two months from mid-August. We have recently increased our working interest in the West Texas Windham fieldfrom 52% to 95% at a cost of $3.6 million. We are ready to take over as operatorand to conduct two workovers. We have also entered into an arrangement withViking Exploration to participate in their drilling programme. We will bedrilling our first five wells with them in South Texas shortly. In Mauritania, Chinguetti field production averaged 18,300 bpd in the firstquarter and 15,400 in the second quarter of 2007. Recent production has been12-14,000 due to remedial work needed on gas lift equipment. Phase 2-Bdevelopment work is expected to commence towards the end of the year or early in2008, with 2-3 development wells and 2-3 workovers. Recently acquired 4-Dseismic date is being processed to assist in choosing optimal locations. Sincethe end of 2006, the operator has revised its ultimate field 2P reserveestimates to 62 million bbls compared with the 50 million used by Sterling forits 2006 Annual Report. In Gabon we have recently agreed to increase our interests through pre-emptionin both the Themis Marin and Iris Marin licences to 28.5% (previously 20.6%) and50% (from 38.6%) respectively. A fourth quarter 2007 Themis exploration well isto be drilled on the 13 million bbls Admiral prospect, for which Sterling willpay 10.5% of the cost. A new well commitment has been entered into on Iris on amuch larger target in early/mid 2008. Rigs have been secured for both wells andthese targets could, if successful, add materially to Group reserves. The recent 2006 Annual Report contains more details on other developments in2007 but I would like to re-emphasise our commitment to developing a position inKurdistan, an emerging and highly prospective area, where discussions continue. I am confident that the Group is well placed for success from its greatlyexpanded drilling programme and the early results in the USA are highlypromising." As previously announced, Dr Richard Stabbins was appointed as Chairman at theend of the Meeting as Mr O'Toole did not seek re-election after nearly fiveyears as Chairman. All Resolutions proposed at the Meeting were duly passed. Enquiries Sterling Energy (+44 20 7405 4133) Web site: www.sterlingenergyplc.comHarry WilsonGraeme Thomson Citigate Dewe Rogerson (+44 20 7638 9571)Media enquiries: Martin JacksonAnalyst enquiries: Kate Delahunty Evolution Securities (020 7071 4300)Rob Collins This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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