News

October 22, 2009

Sterling Energy Offloads US Assets For US$90 Million To Clear Debts

Eighteen months after Sterling Energy sought to sell its debt-encumbered properties in the US, the AIM firm has finally agreed a binding sale agreement worth US$90 million upfront. This will be a relief for Sterling and its backers as it finally clears the company’s debt, which was largely accrued following the March 2007 US$145 million acquisition of Whittier Energy, and will right the financial difficulties created by production shortfalls in the US and Mauritania.

The disposal should allow the company to focus its resources – which were strengthened following the completion of a US$103 million placing in September – on its African and Middle East exploration portfolio, including a hjgh impact well on the Sangaw North well in Kurdistan, which is due to spud mid-December. The company has long believed better returns can be generated for shareholders by hunting elephants in frontier regions rather than scratching around for incremental barrels in...