Sterling Resources Ltd. (TSX-V: SLG)
CALGARY, Aug. 16 /CNW/ - Sterling Resources is pleased to announce its
results for the second quarter ended June 30, 2007. The net loss for the
quarter was $0.7 million compared to $0.6 million in the second quarter of
2006 (both periods $0.01 per common share basic and diluted). For the six
months ended June 30, 2007 the net loss was $1.1 million compared to
$1.0 million in 2006 (both periods $0.01 per common share basic and diluted).
Capital expenditures for the second quarter were $0.9 million compared to
$4.5 million in the second quarter of 2006. For the six months ended June 30,
2007 capital expenditures were $3.3 million compared to $7.8 million in the
first half of 2006. Working capital at June 30, 2007 was $17.7 million
compared to $21.1 million at June 30, 2006.
Highlights for the quarter included the following:
- In the Southern North Sea offshore UK Sterling concluded the
previously announced farm out agreement with RegEnersys under which
they will acquire a 15-percent interest in Blocks 42/12 and 42/13
which contain the Breagh gas discovery. Sterling has a 50-percent
working interest in this well and is carried for the majority of the
costs on the Breagh appraisal well which is expected to spud late in
the third quarter.
- In the Central North Sea, the Constance exploratory well commenced
operations on August 10 and is drilling ahead. Previously the well
was planned for November. Sterling has a 35-percent interest in this
well which lies within Block 21/23a, to the north and east of the
Sheryl oil discovery drilled in 2006.
- In the Northern North Sea, Sterling signed an agreement with Revus
Energy AS to farm out a portion of UK offshore License P1064
comprising Blocks 210/29a and 210/30a. After giving effect to this
arrangement, Sterling retains a 39.9-percent working interest and is
in discussion with other potential partners and turnkey drilling
- Onshore Romania, Sterling has a 60-percent working interest and
operates the 1.5-million acre South Craiova concession. Current work
is focused on the Goshawk area and up to six locations have been
identified for testing shallow Tertiary gas prospects. It is
anticipated that up to three of these wells will be brought to
drilling status in 2007 with the first well timed for later this
- Offshore Romania, Sterling is the operator and holds a 100-percent
working interest in the Pelican Block X111 and the Media Block XV,
which together comprise approximately 1.1-million acres and contain
several mapped prospects as well as the Doina gas discovery.
Engineering studies relating to the possible development scenarios
for the Doina gas trend have been initiated and the process of
farming out a portion of Sterling's working interest continues with
agreement expected during the third quarter.
- On May 23, 2007 Mr. Walter DeBoni was appointed Chairman of the Board
of Directors succeeding Mr. Bob Welty who retired from the Board.
Mr. DeBoni has more than 30 years experience in the oil and gas
industry and has held numerous executive positions with both domestic
and international corporations.
Mr. Stewart Gibson, CEO, said "The second quarter has been a busy one
with several key activities including completing farm-out arrangements and
preparations for the drilling of the upcoming Breagh appraisal well on Block
42/13 and the Constance well on Block 21/23a in the third quarter. In Romania
our plans are progressing for drilling both onshore and offshore later in 2007
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. 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 circumstances.
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
either: 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,