25th Apr 2005 07:01
Sterling Energy PLC25 April 2005 25 APRIL 2005 STERLING ENERGY PLC SALE OF PHILIPPINES GAS ASSETS TO JOINT VENTURE Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas explorationand production company, today announces the sale of its GSEC 101 license toForum Energy Plc ("Forum Energy"), in return for an equity interest of 23.0% inForum Energy. Forum Energy is a joint venture company specially created by Sterling Energy andForum Energy Corporation, a NASD (OTCBB) listed energy group, to amalgamate andmanage the energy assets of both companies in the Philippines region. This issubject to approval by the shareholders of FEC of which over 80% have alreadyundertaken to vote in favour at the EGM to be held on 18 May 2005. Mr HarryWilson, Chief Executive of Sterling Energy and Mr Graeme Thomson, FinanceDirector of Sterling Energy, have been appointed non-executive directors ofForum Energy. The GSEC 101 license was acquired by Sterling Energy in 2002 and lies offshorePalawan in the South China Sea, Philippines, an area known as Reed Bank. Thelicense contains the Sampaguita gas discovery which has flowed gas during testand over which it is planned to shoot a seismic survey shortly. In addition,Forum Energy will have interests in oil & gas assets in the Northern Cebu Islandand coal operating contracts in Central and South Cebu Island. A pre-IPOfunding of £3.35 million has also been conditionally completed valuing theCompany at £17.4 million. On this basis, Sterling's equity holding in Forumwill be valued at £4 million. It is intended that Forum Energy will seek admission to the AlternativeInvestment Market, operated by the London Stock Exchange, later in 2005. Following the disposal, Sterling Energy will be focused on its core areas, theGulf of Mexico and Africa. Harry Wilson, Chief Executive of Sterling Energy Plc, said: "The disposal of Reed Bank will allow Sterling to focus its resources on itscore activities in the Gulf of Mexico and Africa, while retaining exposure tothe upside potential of a more balanced Philippine energy asset portfolio whichhas a great deal of upside." "Sterling's exploration effort is concentrated on its African assets where anactive drilling programme is ongoing. In particular, it has interests in wellsin Mauritania, Gabon and Guinea Bissau at virtually no cost to itself, and arange of other exploration/appraisal opportunities. Sterling is also intent onsubstantially increasing production and cashflow in the Gulf of Mexico." Enquiries Sterling Energy (01582 462 121) Web site: www.sterlingenergyplc.comHarry WilsonGraeme Thomson Citigate Dewe Rogerson (020 7638 9571)Media: Martin Jackson / Rachel LankesterAnalyst: 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