CALGARY, May 2 /CNW/ - Sterling Resources Ltd. (TSXV: SLG) ("Sterling"
or the "Company") has filed a Notice of Default with the National
Agency of Mineral Resources ("NAMR") as a result of NAMR's failure to
grant license assignments to Sterling's farm in partners Petro Ventures
Europe BV and Gas Plus International BV (together the "Partners") for
a 20% and 15% license holding respectively on its Midia and Pelican
Blocks in the Black Sea (the "Concession").
On January 24, 2011 Sterling and its Partners, at the request of NAMR,
submitted new applications, supported by required documentation, to
request assignments for the Partners onto the Concession Agreement.
These applications followed and superseded Sterling's previous attempts
to obtain assignments for its Partners beginning from April 2009, when
Sterling's initial assignment applications were submitted.
Pursuant to the Concession Agreement NAMR has the sole authority to
grant such assignment requests, and has the obligation to not
unreasonably withhold or delay its consent to such applications and to
treat such applications within a maximum of 90 days. NAMR, by failing
to provide its decision on the re-submitted application with the 90 day
period, has failed to comply with this obligation, despite having
informed Sterling and the Partners that it has no objections to their
form or content. It is Sterling's contention that NAMR's failure to
approve the applications for assignment is political in nature.
In the event that NAMR and Sterling are unable to resolve the situation
then this would put the two parties into a dispute resolution procedure
which could ultimately be decided in international arbitration.
Mike Azancot, Sterling's Chief Executive Officer, said: "NAMR's failure
to decide on the applications for assignments is extremely unfortunate
and frustrating, and is in direct contravention to the Company's rights
under the Concession Agreement. This failure, as well as other actions
and inactions by the government of Romania leading to Sterling's
earlier declaration of Force Majeure, are damaging the economic
well-being of the country. Timely development of Romania's offshore
natural resources could dramatically reduce the reliance on imported
gas, bring substantial employment and investment benefits to the
country and provide significant and stable tax receipts for the
government. The actions that we are now taking are done with the
expressed intent of seeking formal resolution to certain blockages
that are impeding our proactive approach to the progress of our work
and investments offshore Romania."
Sterling Resources Ltd. is a Canadian-listed international oil and gas
company headquartered in Calgary, Alberta with assets in the United
Kingdom, Romania, France and the Netherlands. The shares are listed and
posted for trading on the TSX Venture Exchange under the symbol "SLG".
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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. In
addition, statements relating to reserves or resources are deemed to be
forward-looking statements as they involve the implied assessment,
based on certain estimates and assumptions that the reserves and
resources described can be profitably produced in the future.
These forward-looking statements involve numerous 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 circumstances. In addition, these
statements involve substantial known and unknown risks and
uncertainties that contribute to the possibility that the predictions,
forecasts, projections and other-forward looking statements will prove
inaccurate, 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. Readers should
also carefully consider the matters discussed under the heading "Risk
Factors" in the Company's Annual Information Form.
Undue reliance should not be placed on these forward-looking statements,
as there can be no assurance that the plans, intentions or expectations
upon which they are based will occur. Sterling's actual results,
performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements. These
statements speak only as of the date of the press release. Sterling
does not intend and does not assume any obligation to update these
forward-looking statements except as required by law.
Financial outlook information contained in this press release about
prospective results of operations, financial position or cash flows is
based on assumptions about future events, including economic conditions
and proposed courses of action, based on management's assessment of the
relevant information currently available. Readers are cautioned that
such financial outlook information contained in this press release
should not be used for purpose other than for which it is disclosed
SOURCE Sterling Resources Ltd.
For further information:
Visit www.sterling-resources.com or contact:
Mike Azancot, President and Chief Executive Officer, Phone 44-7740-432883, firstname.lastname@example.org
David Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804, email@example.com
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279, firstname.lastname@example.org