Operations and Corporate Upda

RNS Number : 2646D

Sterling Energy PLC

30 November 2009

 



30 November 2009

STERLING ENERGY PLC

("Sterling" or the "Company")

Operations & Corporate Update 

Sterling (symbol: SEY), an AIM listed independent oil & gas exploration and production company with interests in Africa, USA and the Middle East, is pleased to provide the following update on its activities

Kurdistan- Sangaw North PSC.

In the Sterling operated Sangaw North block (53.33% WI), the drilling rig is now in transit to the well location and the well is scheduled to start drilling in the second half of December. The planned total depth of the well is 3,660m, with an option to drill to 4,160m.

The well will target several prospective reservoirs in the Cretaceous. An independent review of the Sangaw North prospect undertaken by RISC (UK) Ltd gives a best estimate of gross prospective oil resources for the Cretaceous interval of 804 million barrels. If the well is drilled to 4,160m it will also test potentially prospective reservoirs within the Jurassic.

Sale of USA business

The sale of the Company's USA business is progressing well and is expected to be completed in early December. The proceeds of the sale, after costs, will be used to repay the outstanding bank debt and the remainder will be used as working capital.

Proposed Open Offer to Shareholders

The Company is completing the prospectus for the Open Offer and proposes to post the document after the sale of the USA business is completed. 

Alastair Beardsall, Sterling's Executive Chairman said

"We are all looking forward with excitement to the drilling of Sangaw North #1. The well will test potential resources that, if proven, will add significant value for our shareholders. The sale of the USA business, when completed, will allow the Company to focus on its exploration portfolio without the burden of any debt."

Enquiries

   Sterling Energy Plc ([phone])  

   Web site: www.sterlingenergyplc.com 

Alastair Beardsall, Executive Chairman

Evolution Securities ([phone])

Rob Collins 

Chris Sim

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Andrew Grosse, B.Sc. (Hons) Geology & Geophysics (1980), Exploration & Technical Director of Sterling Energy Plc, who has been involved in the oil industry for over 29 years, is the qualified person that has reviewed the technical information contained in this press release.

 

END

 

 

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