Business
Placing Announcement
Placing Announcement.
About this update from Afentra Plc
[{"type":"text","content":"\n Sterling Energy PLC\n15 November 2007\n\n NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN\n\n\n15 November 2007\n\n Sterling Energy PLC\n ('Sterling' or the 'Company')\n\n Placing to RAISE £11.0 MILLION\n\n\nSterling (symbol: SEY), an AIM listed independent oil & gas exploration and\nproduction company with interests in the Gulf of Mexico and Africa and the\nMiddle East, is pleased to announce that it has raised approximately £11.0\nmillion gross of expenses (US$22.3m) through a placing of 78,510,027 ordinary\nshares of 1p each ('Placing Shares') at 14p per Placing Share (the 'Placing').\nThe net proceeds of the Placing will be used to fund the initial costs relating\nto the Production Sharing Contract ('PSC') entered into with the Kurdistan\nRegional Government of Iraq ('KRG') for the Sangaw North exploration block \n('Block'), announced on 12 November 2007.\n\n\nThe PSC\n\n\nThe Block, which covers an area of 492 sq km is located approximately 140 km\nsouth east of Erbil and 50 km south west of Suleimaniah. It lies in a highly\nprospective area around 50 km south east of the giant Kirkuk oil field and on\ntrend with the major Taq Taq and Chemchemal oil and gas discoveries. The Block\nitself contains a large surface anticline with the possibility of multiple\nreservoir targets, in common with many existing fields in the area, providing\nstrong encouragement for exploration success.\n\nThe terms of the PSC are in accordance with the terms and conditions published\nby the KRG. Sterling has 100% interest in the PSC subject to back in rights for\nthe KRG and local industry partners.\n\nThe PSC has an initial 3 year exploration period during which Sterling plans to\nacquire approximately 200 km of 2D seismic and drill at least one exploration\nwell. The Company will start work immediately, having already established an\noffice in Erbil earlier this year. It is anticipated that expenditure over this\nperiod, including initial costs, could be in the order of US$35 million.\n\nSterling's signature of the PSC, together with other recently signed agreements\nwith the KRG, brings the number of international oil companies now working in\nKurdistan to 25.\n\n\n\nOperations Update\n\nIn an operating update published on 12 November 2007, Sterling announced that Q3\nnet group production averaged c. 6,100 ...