CALGARY, April 5 /CNW/ - Sterling Resources Ltd. is pleased to announce
its results for the year ended December 31, 2006.
The net loss for the year was $1.2-million ($0.01 per common share)
compared to $2.4-million ($0.03 per common share) in 2005. Capital spending
for 2006 was $30.1-million compared to $5.6 million in 2005. Working capital
at December 31, 2006 was $21.1-million compared to $24.0-million at December
Highlights for the year included the following:
- Sterling had its first offshore discovery in the Central North Sea on
Block 21/23a, now known as Sheryl. Subsequent appraisal drilling
indicated a small accumulation in the western area with additional
potential in the eastern area. As a result of this discovery,
Sterling has booked its first probable reserves.
- In the Southern North Sea, the Breagh appraisal well has been farmed
out and brought to drill ready status. Subsequent to year end, the
Company was finalizing a jack-up rig for this well with drilling
planned to begin in the second half of 2007.
- Subsequent to year end, Sterling was awarded additional licenses in
the UK 24th Offshore Licensing Round. The company obtained 6 licenses
covering 13 blocks or part blocks. In total Sterling now holds
interests in 15 licenses (27 blocks or part blocks).
- Onshore Romania, results from the Piscu Sadovei well (also referred
to as "Boar") were disappointing but the results of the new seismic
program acquired towards year end shows prospectivity across this
large under-explored concession.
- Offshore Romania, Sterling acquired the remaining 80% interest in the
Midia and Pelican Blocks. Sterling is now the operator and has a
100-percent interest in these blocks.
- In July 2006, Sterling completed an equity offering of 13.8-million
shares at a price of $2.10 per share. After underwriting commissions
and expenses the net proceeds were $27.1-million.
Mr. Stewart Gibson, CEO, said, "The Company accomplished several
important goals in 2006 and is looking forward to an active drilling program
in 2007. Included in this program is the drilling of the Breagh appraisal well
and an additional exploration well, the Constance prospect on Block 21/23a,
both in the North Sea. In addition, our first operated well offshore Romania
is expected to spud by year end and additional drilling is planned for the
Craiova block onshore Romania."
Sterling has filed its Form 51-101F1 - Statement of Reserves Data and
Other Oil and Gas Information, Form 51-101F2 - Report on Reserves Data by
Independent Qualified Reserves Evaluator, and Form 51-101F3 - Report of
Management and Directors required under National Instrument 51-101, Standards
of Disclosure for Oil and Gas Activities. These Forms have been included in
Sterling's Annual Information Form, dated April 4, 2007, for the year ended
December 31, 2006.
Copies of these filings and the Company's annual report for the year
ended December 31, 2006 can be obtained electronically through the SEDAR
system at www.sedar.com.
Forward Looking Statements
This disclosure contains certain forward-looking statements that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Sterling's control, including: the impact of general economic
conditions in the areas in which Sterling operates, civil unrest, industry
conditions, changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are interpreted and
enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in commodity prices, foreign exchange or
interest rates, stock market volatility and obtaining required approvals of
regulatory authorities. In addition there are risks and uncertainties
associated with oil and gas operations, therefore Sterling's actual results,
performance or achievement could differ materially from those expressed in, or
implied by, these forward-looking statements will transpire or occur, or if
any of them do so, what benefits, including the amounts of proceeds, which
Sterling will derive therefrom. All statements included in this press release
that address activities, events or developments that Sterling expects,
believes or anticipates will or may occur in the future are forward-looking
statements. These statements include future production rates, completion and
production timetables and costs to complete wells, and production facilities.
These statements are based on assumptions made by Sterling based on its
experience perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate in the
Sterling Resources Ltd. is an international oil and gas company
headquartered in Calgary, Alberta.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: visit www.sterling-resources.com or contact:
Ken J. Croft, Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279,
firstname.lastname@example.org; or Stewart G. Gibson, Chief Executive Officer,
Phone: 44-133082-6717, Mobile: 44-7768-042219,