CALGARY, Oct. 19, 2012 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or the "Company") is pleased to announce that it has signed a sale and purchase agreement with ExxonMobil Exploration and Production Romania ("EMEPR") and OMV Petrom for the sale of its 65 percent interest in a portion of the Block 15 Midia in the Romanian Black Sea (the "Sale Portion").
The Sale Portion is on the southeastern margin of the block, in deeper waters and covers 125,000 gross acres, or 11 percent of the total area of the Midia and Pelican Concession. It contains the newly determined Anca and Maria prospects and is adjacent to EMEPR's and OMV Petrom's deep water Neptun block containing the Domino-1 gas discovery well some 35 kilometres to the southeast. As part of the same sale agreement, Sterling's partner Petro Ventures Europe BV is also selling its 20 percent interest in the Sale Portion.
The consideration for the transaction payable to Sterling is US$29.25 million upon completion, a contingent payment of US$29.25 million upon satisfaction of certain conditions relating to a hydrocarbon discovery made on the Sale Portion, and a further contingent payment of US$19.5 million upon first commercial production from the Sale Portion. Completion is subject inter alia to governmental approvals.
The sale does not include any of the discoveries or other prospects in the Midia block and will not be affected in any way by the results of the Ioana-1 well currently being drilled. The previously announced process for the partial divestment of Sterling's interest in the Luceafarul, Midia and Pelican blocks continues, excluding the Sale Portion. The Company will now not be proceeding with the possible sale of its interest in the Cladhan field in the UK North Sea.
"This carve-out and sale of an area in deeper waters allows us to focus on the development and exploration of fields and prospects in shallower waters, where drilling and construction should be less expensive," stated Mike Azancot, Sterling's President and CEO. "This transaction is additional evidence of the rapidly growing industry interest in the Romanian Black Sea as a new hydrocarbon region where Sterling has a material presence," added Mr. Azancot.
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 the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Filer Profile No. 00002072
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 purposes other than for which it is disclosed herein.
Image with caption: "Sale and Purchase Agreement for a Portion of the Midia Block in the Romanian Black Sea (CNW Group/Sterling Resources Ltd.)". Image available at: http://photos.newswire.ca/images/download/20121019_C8417_PHOTO_EN_19566.jpg
SOURCE: Sterling Resources Ltd.
For further information:
For further information: visit www.sterling-resources.com or contact:
Mike Azancot, President and Chief Executive Officer, Phone: 44-20-3008-8488, Mobile: 44-7740-432883, [email protected]
David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804, [email protected]
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, [email protected]