Sterling Energy plc together with its subsidiary undertakings is today issuing its Interim Management Statement and financial results for the third quarter ended 30 September 2018. All figures are unaudited unless stated otherwise.
Operations
- Odewayne block, Somaliland; trial line 2D processing ongoing.
- Dialogue continues between the Joint Venture (‘JV’) partners on developing the technical understanding of the block.
Financial
- Net cash (zero debt) to the Group as at 30 September 2018 of $46.6 million (30 September 2017: $83.1 million).
- Adjusted Earnings before Interest, Tax, Depreciation and Amortisation and Exploration Expense (‘EBITDAX’) loss for the Group of $313k (Q3 2017: $1.4 million loss).
- Loss after tax of $306k (Q3 2017: $4.3 million loss).
Corporate
- Appointment of GMP FirstEnergy as the Company’s co-broker, with immediate effect. GMP FirstEnergy’s Oil and Gas expertise, experience and capabilities in research and capital markets will benefit the Company’s continued drive to a material M&A transaction.
Chief Executive Officer’s Statement: “Technical understanding of the Odewayne exploration block continues, with the initial 3 trial seismic lines increasing the imaging quality. Discussions with the JV on the progression of the block are ongoing and updates will made at the appropriate time.
Since my appointment in June, Sterling has progressed its efforts on securing a material M&A transaction. The appointment of GMP FirstEnergy as co-broker, coupled with the engagement of Pinsent Masons, adds to strengthen Sterling’s ability to achieve the mandate.
We have a clear strategy and can move quickly and decisively for the right opportunity, leveraging our full cash balance of ca.$47 million and technical capabilities to good effect. We remain very focused on finding a suitable acquisition.
In line with other AIM companies, the Board has decided that its regular market updates will continue in conjunction with publication of its annual and interim financial statements. Given the Company’s obligation to keep the market immediately updated as material events occur, it was concluded that going forwards there was little benefit from continuing to provide quarterly updates (for Q1 and Q3).”
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