12th Jun 2007 12:30
Sterling Energy PLC12 June 2007 12 June 2007 STERLING ENERGY PLC UPDATE Sterling Energy plc ("Sterling") announces that petrophysical analysis indicatesthat multiple pay horizons have been encountered in the Brown1 well ("ThunderStud") in south Louisiana, for which it is operator (15.0 % WI, 10.8% NRI). Sterling also announces an increase in its US bank facilities and that anupdated Group presentation is available on its website(www.sterlingenergyplc.co.uk) in advance of a planned series of institutionalpresentations. The Brown1 reached its target depth of c17,900 feet, was logged and a 5-1/2"production liner has been set. A series of production tests on these zones areplanned for later in the year when equipment is available. All new information,including from the testing, will need to be evaluated and incorporated intoSterling's geological interpretation, following which the commercial potentialof the well and of the whole project will become clearer. Sterling's US bank facilities have also been increased by $6.8 million to atotal of $61.5 million. This is principally as a result of the successfulonshore drilling by the former Whittier company since the start of the year.These facilities are secured against the Whittier assets, which were acquired inlate March 2007. Currently, Sterling has Group cash balances of c$37 million andundrawn bank facilities of c$19 million. Harry Wilson, CEO of Sterling said "We are very pleased with the initial results of the Whittier deal and thedrilling in the US so far this year. Our strengthened team there has the abilityto deliver consistent production and reserve increases through drilling andacquisition. Our growing cash flow should help to unlock and expand the upsidepotential in our international portfolio." For further information contact: Sterling Energy plc (+44 1582 462 121)Harry Wilson, Chief ExecutiveGraeme Thomson, Finance Director Evolution Securities (+44 207 071 4311)Rob Collins Citigate Dewe Rogerson (+44 207 628 9571)Media enquiries: Martin Jackson / George CazenoveAnalyst enquiries: Nina Soon www.sterlingenergyplc.com Ticker Symbol: SEY "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