Sterling Resources has announced its financial results for the quarter ended March 31, 2009. Unless otherwise noted all figures contained in this release are denominated in Canadian dollars.
The net loss for the quarter ended March 31, 2009 was $1,153,937 ($0.01 per common share - basic and diluted) compared to a loss of $44,104 ($0.00 per common share - basic and diluted) for the quarter ended March 31, 2008. Foreign exchange losses, lower interest income earned on smaller average cash balances, and lower interest rates and capitalization of overhead during the first quarter of 2009 account for the larger loss when compared to the first quarter of 2008.
Cash and cash equivalents as at March 31, 2009 were $5,696,656, compared to $15,769,514 as at December 31, 2008. The net working capital deficiency was $713,296 as at March 31, 2009 compared to positive net working capital of $13,967,470 at December 31, 2008. Capital expenditures during the quarter totalled $13,905,721 compared to $7,540,238 during the first three months of 2008. Significant capital expenditures during the first three months of 2009 included $11.1 million related to the completion and testing of the Breagh 42/13-5 and 5z wells in the Southern North Sea and $2.1 million of costs related to the acquisition of high resolution seismic over the Doina and Ioana (formerly Midia SE) prospects in the Romanian Black Sea.
"Although some of Sterling's initiatives have been delayed by the weak capital markets, we will continue to prudently and selectively deploy capital in activities that will create long-term value for our shareholders," stated Stewart Gibson, Sterling's Chief Executive Officer. "We continue to maintain a disciplined approach which will permit us to move forward more aggressively when access to capital from the Doina and Breagh initiatives becomes available and the capital markets improve," added Mr. Gibson.
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