Business
Operating Upate
Operating Upate.
About this update from Afentra Plc
[{"type":"text","content":"\n Sterling Energy PLC\n16 November 2006\n\n\n\n\n16 November 2006\n\n STERLING ENERGY PLC\n ('Sterling' or the 'Company')\n\n OPERATING UPDATE\n\n\n\nSterling Energy plc, the AIM listed oil & gas exploration & production company\noperating in the Gulf of Mexico and Africa, today provides an update on its\nactivities since the publication on 19 September 2006 of its Interim Results.\n\n\n\nMauritania\n\n\n\nSterling notes the presentation by Woodside, operator of the Chinguetti field,\nmade today, which gave an interim reserves update for proven, probable and\ncontingent resources of 77 million bbls. Of this total, 53 million bbls were\nproven and probable reserves ('2P'). In addition to an infill well by the end of\n2006, a 4D seismic survey is planned for 2007 and a programme of infill wells in\nlate 2007. It also highlighted the high resolution 3D seismic work planned for\n2007 on the Tiof field, in which Sterling has a royalty interest, and the\nconcept of a tie-back into Chinguetti facilities with a possible capacity of\n50,000 bpd. Chinguetti field production since mid-year has been in the range of\n27,000-35,000 bopd.\n\nIn its 2006 half-year report, Sterling had used a provisional estimate of 2P\nfield reserves of 80 million barrels ('bbls'), based on a 4 phase development of\nthe field. These estimates will be formally reviewed again at the time of\npublication of the annual results for 2006, in light of further information\ngained over the coming months. For the development potential of Phases 2\nonwards, key data will be obtained from the drilling of the well planned for\nDecember. The planned 4D seismic will make it possible to have a much better\npicture of the ultimate potential recoverable reserves of the Chinguetti field.\n\n\nUnder the provisions of the Funding Agreement, Sterling's cash flow continues to\nreflect its priority of recovering development costs paid by it, through cost\noil production.\n\n\n\nGulf of Mexico and Gulf Coast\n\n\n\nProduction in the third quarter averaged 8.6 mmcfged, compared with 8.5 mmcfged\nin the first half of 2006. Shut-ins owing to the pipeline repairs on Gryphon and\nthe planned upgrade at Mustang Island areas, held back production. Energy prices\nhave been lower than in the first half. Gas accounts for some 80% of US\nproduction and gas prices to date in the second ha...