Business
2006 Preliminary Results
2006 Preliminary Results.
About this update from Afentra Plc
[{"type":"text","content":"\n Sterling Energy PLC\n16 May 2007\n\n\n STERLING ENERGY PLC\n\n 2006 PRELIMINARY RESULTS\n\n CONFIDENT OF GROWTH\n\nSterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration\nand production company operating in Africa, the Gulf of Mexico and onshore USA,\ntoday announces its 2006 Preliminary Results together with an update on progress\nand outlook.\n\n2006 HIGHLIGHTS:\n\n• Revenues up 226% to $81.0 million in 2006 from $24.9 million in 2005\n\n• Entitlement sales increased in the year by 172% to an average of 4,400 boe/d\n\n• Gross profit up 73% to $26.6 million\n\n• Net cash flow from operating activities of $62.3 million (2005: outflow \n $13.6 million)\n\n• Operating profit before amortisation, depletion and impairment provision was \n $56.2 million in 2006 (2005: $11.6 million)\n\n• Operating loss of $46.8 million in 2006 (2005: profit $3.0 million) after \n non-cash charge of $57.3 million for previously announced Mauritanian assets \n impairment provision\n\n• 2006 profit before tax and impairment provision was $13.4 million compared \n with restated 2005 equivalent loss of $13.3 million\n\n\n2007 ACTIVITY AND OBJECTIVES\n\n• Placing to raise £26.1 million before expenses (c.$50 million) and \n short-term bank facility of up to $100 million completed\n\n• $145 million cash acquisition of US based Whittier Energy Corp. ('WEC') \n completed in late March 2007. WEC has drilled 7 successful wells so far in\n 2007 out of 8 drilled\n\n• WEC deal increased Group 2P reserves by over 90% to c.24.5 million boe from \n their end 2006 level of 12.9 million boe\n\n• Operator estimate of remaining Chinguetti 2P field reserves increased by \n 34% to 51 million bbls from Sterling's end 2006 total. C-18 well drilled \n and brought onstream\n\n• Current Group production of over 6,000 boe/d, an increase of 88% from the \n first quarter 2007 level of 3,200 boe/d\n\n• Record number of wells planned for in the next 12 months, with over 35 \n wells in the USA and at least 4 in Africa. 2007 Guinea-Bissau drilling was\n unsuccessful. Licence extension recently granted on Iris Marin, Gabon with\n commitment to exploration well\n\n• Dr Richard Stabbins to become Chairman at the AGM following the decision of \n Mr Richard O'Toole to retire\n\n• Current unrestricted cash of c.$35 million, undr...