15th Nov 2007 11:46
Sterling Energy PLC15 November 2007 NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN 15 November 2007 Sterling Energy PLC ("Sterling" or the "Company") Placing to RAISE £11.0 MILLION Sterling (symbol: SEY), an AIM listed independent oil & gas exploration andproduction company with interests in the Gulf of Mexico and Africa and theMiddle East, is pleased to announce that it has raised approximately £11.0million gross of expenses (US$22.3m) through a placing of 78,510,027 ordinaryshares of 1p each ("Placing Shares") at 14p per Placing Share (the "Placing").The net proceeds of the Placing will be used to fund the initial costs relatingto the Production Sharing Contract ("PSC") entered into with the KurdistanRegional Government of Iraq ("KRG") for the Sangaw North exploration block ("Block"), announced on 12 November 2007. The PSC The Block, which covers an area of 492 sq km is located approximately 140 kmsouth east of Erbil and 50 km south west of Suleimaniah. It lies in a highlyprospective area around 50 km south east of the giant Kirkuk oil field and ontrend with the major Taq Taq and Chemchemal oil and gas discoveries. The Blockitself contains a large surface anticline with the possibility of multiplereservoir targets, in common with many existing fields in the area, providingstrong encouragement for exploration success. The terms of the PSC are in accordance with the terms and conditions publishedby the KRG. Sterling has 100% interest in the PSC subject to back in rights forthe KRG and local industry partners. The PSC has an initial 3 year exploration period during which Sterling plans toacquire approximately 200 km of 2D seismic and drill at least one explorationwell. The Company will start work immediately, having already established anoffice in Erbil earlier this year. It is anticipated that expenditure over thisperiod, including initial costs, could be in the order of US$35 million. Sterling's signature of the PSC, together with other recently signed agreementswith the KRG, brings the number of international oil companies now working inKurdistan to 25. Operations Update In an operating update published on 12 November 2007, Sterling announced that Q3net group production averaged c. 6,100 boepd, an increase of 25% over the firsthalf. The Company also confirmed the imminent start of drilling offshore Gabonon the 5-20 million bbls Admiral prospect in which it has a c. 28% interest, aswell as continued drilling in the USA and the start of Phase 2b development workin Mauritania in early 2008. The Placing Shares The Placing Shares will rank pari passu in all respects with the existingordinary shares of 1p each and will represent 4.76% of the Company's enlargedissued share capital. Application has been made to the London Stock Exchange forthe Placing Shares to be admitted to trading on AIM. It is expected thatadmission will become effective and dealings in the Placing Shares will commenceon AIM on Tuesday, 20 November 2007 ("Admission"). Following Admission the Company will have 1,648,710,585 ordinary shares of 1peach in issue. Commenting today, Harry Wilson, Chief Executive of Sterling Energy Plc, said: "The proceeds of this Placing will fund the initial costs on the Sangaw Northexploration block, which is the latest addition to our growing portfolio ofnear-term drilling projects. The upside in these exploration targets, whencombined with our producing US and Mauritanian assets, positions the Companywell for the future." Enquiries Sterling Energy Plc (020 7405 4133) Web site: www.sterlingenergyplc.com Harry WilsonGraeme Thomson Evolution Securities (020 7071 4300)Rob CollinsTim Redfern Citigate Dewe Rogerson (020 7638 9571)Media enquiries: Martin JacksonAnalyst enquiries: Kate Delahunty This announcement has been issued by, and is the sole responsibility of,Sterling Energy plc. These written materials are not an offer of securities for sale in the UnitedStates. Securities may not be offered or sold in the United States absentregistration under the US Securities Act of 1933 (the "US Securities Act") or anexemption there from. Sterling Energy plc has not registered and does notintend to register any of the Placing Shares under the US Securities Act. ThePlacing Shares will not be offered or sold to the public in the United States. Evolution Securities Limited is acting exclusively for Sterling and for no oneelse in connection with the Placing and will not be responsible to anyone otherthan Sterling for providing the protections afforded to the customers ofEvolution Securities Limited or for providing advice in relation to the Placingor any transaction or arrangement referred to herein. The release, publication or distribution of this announcement into certainjurisdictions other than the UK may be restricted by law and therefore personsin such jurisdictions into which this announcement is released, published ordistributed should inform themselves about and observe any such restrictions.Any failure to comply with any such restrictions may constitute a violation ofthe securities laws or regulation of such jurisdictions. This announcement is not for release, publication, or distribution, directly orindirectly, in whole or in part, in or into Australia, Canada, Japan, or theUnited States and does not constitute, or form part of, an offer or thesolicitation of an offer, or inducement, or invitation to subscribe for, buy,underwrite or otherwise acquire, any rights, shares, or other securities, northe solicitation of any vote or approval in any jurisdiction, nor shall there beany sale, issue or transfer of shares in the Company in any jurisdiction incontravention of applicable law. Past performance is no guide to future performance and persons needing adviceshould consult an independent financial adviser. No statement in thisannouncement is intended to be a profit forecast or to imply that the earningsof the Company for the current year or future years will necessarily match orexceed the historical or published earnings of the Company. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SEY.L