Business
2008 Preliminary Results
2008 Preliminary Results.
About this update from Afentra Plc
[{"type":"text","content":"\n RNS Number : 0671T Sterling Energy PLC 01 June 2009 \n \n1 June 2009\n\nSTERLING ENERGY PLC\n\n2008 PRELIMINARY RESULTS\n\n\nSterling Energy, the AIM listed (symbol: SEY) independent oil and gas exploration and production company operating in Africa, the Middle East, the Gulf of Mexico and onshore USA, today announces its 2008 Preliminary Results together with an update on progress and outlook.\n\n2008 HIGHLIGHTS\n \n· Revenues for the period increased 7% to $103.6 million (2007: $97.2 million).\n \n· Average production decreased 17% to 4,809 boe/d (2007: 5,760 boe/d), partly due to the impact of two major hurricanes in the USA. Year to date production in 2009 has averaged 4,694 boe/d.\n \n· EBITDA increased to $65.1 million (2007: $56.6 million).\n \n· Falls of 61% in oil prices and of 25% in gas prices between the end of 2007 and 2008 resulted in lowered fixed asset values and triggered non-cash pre-tax impairment charges of $180.1 million. Accordingly an operating loss of $175.2 million resulted (2007: profit $1.8 million).\n \n· Operating profit of $7.7 million before impairment charges (2007: $1.8 million) .\n \n· Proved plus probable (“2P”) oil and gas reserves at the end of 2008 were down 14% at 18.3 million boe.\n \n· Placing of £13.5 million at 2p per share in October 2008.\n \n· Since the start of 2008, Sterling has repaid $41.4 million (27%) of its bank debt, which currently stands at $112 million. In 2008 the falls in prices of oil by 75% and gas by 58%, from their peaks, and continued gas price weakness in 2009 has resulted in a marked reduction in the Group’s Borrowing Base debt availability. Sterling’s debt is above the calculated available level and a waiver was agreed with its banks in April 2009 until mid-August 2009. Sterling is subject to certain restrictions and approvals under the waiver. A strategic solution is being sought to enable repayment of the existing debt gap of $25.3 million in advance of expiry of the waiver, in addition to further repayments forecast to then fall due. A further review will take place at that time. Cash balances are currently $4.3 million. \n\n· Increased a...