Final results published today by Sterling Energy plc for the year to December 31, 2002 reflect a transformation for shareholders following the reverse acquisition with AIM-quoted LEPCO plc last October.
The results include only two months of trading following the acquisition but show that net assets rose by more than 3,000% to £14.91 million. Losses for the year fell to £78,000 from £1.48 million during 2001. Since the end of the results period Sterling has been trading profitably, with production now running near $700,000 per month.
Chairman Richard O’Toole said: “We are delighted that our strategy of building a strong cash generative base in the Gulf of Mexico, complemented with selective international exploration projects, is rapidly taking shape. We look forward to another exciting year for the company and its shareholders.”
Sterling’s proven and probable reserves rose during the year from virtually zero to 17 billion cubic feet equivalent (bcfe) of gas. Production, which was negligible at the start of 2002, had risen to 4.4 million cubic feet equivalent a day by April of this year.
Sterling has production interests in seven Gulf of Mexico gas fields offshore USA, together with minor production onshore USA and Canada. Approximately 95% of current production is gas, at a time when gas prices are historically high.
Key to Sterling’s growth strategy is the acquisition of production & exploration assets with development and high upside potential. Depending on the risk-reward profile, farm-in partners are brought in to bear the drilling costs. Sterling will typically retain a royalty income interest in the field. This approach has already proved successful at High Island 52 in the Gulf of Mexico.
Sterling also holds an exploration licence for the Reed Bank area offshore Philippines, where potential reserves of 600 bcf of gas were discovered in the 1980s. It is currently also pursuing several corporate acquisition opportunities which may fit its growth profile.
For further information contact:
Harry Wilson, Chief Executive
Sterling Energy Plc: 01582 462 121
Graeme Thomson, Finance Director
Sterling Energy plc: 01582 462 121
Allan Piper, First City Financial Public Relations: 020 7436 7486
Chris Callaway, Evolution Beeson Gregory: 020 7071 4309
www.sterlingenergyplc.com
