Business
Annual Results for the year ended 31 December 2010
Annual Results for the year ended 31 December 2010.
About this update from Afentra Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 6918D Sterling Energy PLC 28 March 2011 \n \n\n \n \n \n28 March 2011\n \nSTERLING ENERGY PLC\n \nANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010\n \nSterling Energy Plc (\"Sterling\" or the \"Company\") is an upstream oil and gas company listed on AIM in London. Sterling is an experienced operator of international licences with a current focus on projects in Africa and the Middle East. Sterling has high potential projects in Kurdistan, Madagascar and Cameroon.\n \n \n2010 SUMMARY\n \n· Sangaw North-1 exploration well testing the potential of the Sangaw North block.\n \n· Received $15.6 million of net cash flow from Chinguetti field operations during 2010 (2009: $13.3 million).\n \n· Cash resources as at 31 December 2010 $111.7 million including partner funds (2009: $113.9 million).\n \n· Company remains debt free.\n \n \n\n\n \n \nCHAIRMAN'S STATEMENT \n \nDuring 2010 Sterling's primary focus was the drilling activity at Sangaw North-1; an exploration well testing a large prospective structure in the Kurdistan autonomous region of Iraq. We have encountered many geological and mechanical challenges while drilling this well, however the expertise of our drilling team, with the support of our joint venture partners, has meant we could continue operations in a safe and controlled manner, albeit at a slower overall pace. The delay to the drilling program caused by the geological and mechanical events was further extended by the 'crowning incident' on the rig caused by the rig contractor. However frustrating these delays may be, the financial impact for Sterling has been mitigated as our drilling costs for Sangaw North-1 well are carried by Addax. I thank all the stakeholders in the Sangaw North project for their assistance and support during a very exciting and challenging drilling operation. \n \nFinancial\n \nAs a result of the re-structuring undertaken at the end of 2009, the Company remains in a very strong financial position with some $101.6 million of own funds at the end of 2010; our approved work programme for 2011 is fully funded and we have funds available for new ventu...