Sterling Reaches Agreement for Additional $8MM Funding from Gemini
Sterling has reached an agreement under which the group may call for a further US $8 million of additional
funding in the form of a "top up facility" with Jersey based Gemini Oil and Gas Fund II, L.P. ("Gemini"), as a supplement to the existing loan agreement with Sterling's UK subsidiary. Consistent with the original agreement, Gemini will be entitled to receive interest payments based on a share of future Breagh revenues.
Sterling continues to pursue additional farm-out opportunities in the UK offshore, and the Company has engaged the services of Senergy Ltd. to oversee the sale of its UK onshore and French assets. The data room will open this week with completion targeted for the first quarter of 2009.
These steps will supplement the Company's funding until closing of the Melrose Resources plc farm-in to the Romanian assets announced last week.
During this period Sterling will also consider the farm-out of a portion of Breagh which, as the Company has consistently indicated, will be timed to follow the successful testing of East Breagh and the test on the horizontal West Breagh well, which is currently drilling at 5,500 feet.
- Beach Expects Regulatory Nod for Farm-In Offshore Romania by Mid-Oct (Sep 13)
- Melrose and Petroceltic Plan to Merge (Aug 17)
- Exxon, Total Bid for Gas Drilling in The Black Sea (Jun 21)
Company: Sterling Resources more info
- Britain's Breagh Gas Field Back Up after 7 Week Closure (Dec 30)
- Production at UK Breagh Gas Field to Resume in 6-8 Weeks (Nov 20)
- UK's Breagh Gas Field Shut, Maybe for Two Weeks - Sterling (Nov 13)