Sterling Energy PLC (AIM: SEY) widened its pretax loss in the 2008 full year to US$ 184.7 million from US$2.95 million, hit by a US$180 million write-down related to its operations in the US and West Africa due to the fall in oil and gas prices.
Revenues in the year to end-December 2008 were up 7 percent at $103.6 million, but production from the fields in the US and Mauritania was down 17 percent year-on-year at 4,809 barrels of oil per day, mainly due to the effect of 2 major hurricanes in the US.
Year to date production in 2009 has averaged 4,694 boe/d.
The independent oil and gas exploration and production company operating in Africa, the Middle East, the Gulf of Mexico and onshore USA said the immediate focus remains on finding a resolution to Sterling’s debt shortfall which has arisen principally as a direct result of the sustained and major fall in energy prices. It continues discussions with interested third parties and continues to seek a sale of assets, including the US business.
Chairman Dick Stabbins said: “On the exploration front, I am very excited about the carried well in Kurdistan that we plan to drill in the fourth quarter of 2009. This has the potential to transform the group's outlook, as have our interests in Cameroon and Madagascar, where activity is expected to accelerate. We look to farmout both African licences.”