Following its recent drilling success in 2007, Sterling Resources has been focused on progressing the development of its two offshore gas projects, Breagh in the UK Southern North Sea and the Doina trend in the Romanian Black Sea. Long lead items have been secured and the necessary site surveys and environmental studies for further drilling have been initiated. In addition, equity financings were completed to enable Sterling to commence its most ambitious drilling program in the second half of the year.
First quarter financial highlights for 2008 included:
-net loss was $44,104 ($0.00 per common share - basis and diluted) compared to $419,712 ($0.00 per common share - basis and diluted) for Q1 2007;
-net capital expenditures were $5,299,551 compared to $2,352,426 for Q1 2007; and
-working capital was $57,791,149 compared to $10,858,095 at December 31, 2007.
Key operational achievements for Q1 2008 include:
-the successful completion and testing of the Doina Sister well (Sterling 65 percent after farm-out) on the Midia Block offshore Romania. On test, the well flowed at stabilized rates of up to 19.2 MMscf/d; and
- the contracting of the ENSCO 70 jack up rig, which is scheduled to commence a multi-well drilling program in the UK Southern North Sea in early July 2008, including two wells at Breagh (Sterling 45 percent), and contracting the Sedco 704 semi-submersible rig to drill the Cladhan Prospect on Block 210/29a (Sterling 39.9 percent after farmout) in the UK Northern North Sea in the third quarter.
Other corporate activities for Q1 2008 included:
-the completion of a non-brokered private placement with Royal Bank Project Investment Limited, a subsidiary of The Royal Bank of Scotland, of 7,109,900 common shares at a subscription price of $2.00 per share, for net proceeds of $14.2-million; and
-the completion of a bought deal financing of 16,000,000 common shares at $2.50 per share with a syndicate of underwriters, for net proceeds of $37.5-million.
Mr. Stewart Gibson, CEO, said "During the first quarter of 2008, we have been focused on putting in place the internal infrastructure required to support an expanded level of activity as well as securing rig and other contracts in anticipation of our aggressive 11 well drilling campaign for 2008. The two equity issues in early 2008 will provide the financial flexibility to further these plans and we are also pursuing additional financing arrangements."
Most Popular Articles