12th Nov 2007 12:20
Sterling Energy PLC12 November 2007 12 November 2007 STERLING ENERGY PLC ("Sterling" or the "Company") OPERATIONS UPDATE Sterling (symbol: SEY), an AIM listed independent oil & gas exploration andproduction company with interests in the Gulf of Mexico, Africa and the MiddleEast, provides a summarised operations update: • Sterling has separately announced today that it has entered into a Production Sharing Contract ("PSC") with the Kurdistan Regional Government of Iraq ("KRG") for the highly prospective Sangaw North exploration block ("Block") • An exploration well is due to commence on the 5-20 million bbls Admiral Prospect offshore Gabon in early December in which Sterling has a c.28% interest. Sterling is carried for its costs on approximately two thirds of its interest • Key decisions regarding additional data and possible early drilling on a significant prospect are anticipated soon on the offshore Madagascar licences (Sterling 30%) • Third quarter net group production averaged c.6,100 boepd, an increase of 25% over the first half • Hedges have been implemented for 1,000 bpd of oil for 2008/9 at an average of $74.30/bbl and for a total of 3.5 bcf of gas until July 2009 at an average price of c.$7.75/mmbtu • The USA operations have continued their successful drilling programme with 30 wells in 2007 and an 80% success rate. Three wells are currently drilling • A second horizontal Austin Chalk well has now commenced production sales at approximately 1 mmcfed net. Testing equipment has just arrived on the Thunder Stud location for a six week programme • Phase 2B development work on Chinguetti field remains on track to commence in q1 2008 with 2 development wells and 3 workovers expected. At least one exploration well and one appraisal well are also expected in the area where Sterling has a royalty interest. Enquiries Sterling Energy Plc (0207 405 4133) Web site: www.sterlingenergyplc.comHarry WilsonGraeme Thomson Evolution Securities (020 7071 4300)Rob CollinsTim Redfern Citigate Dewe Rogerson (020 7638 9571)Media enquiries: Martin JacksonAnalyst enquiries: Kate Delahunty In accordance with the guidelines of the AIM Market of the London StockExchange, Harry Wilson, BSc (Hons) Physics (1973), Chief Executive Officer ofSterling Energy Plc, who has been involved in the oil industry for over 33years, is the qualified person that has reviewed the technical informationcontained in this press release. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SEY.L