Sarantel Share Discussion Threads

[dukedosh] 02/12/2013 09:27

Sterling Resources Announces Success in the UK 27th Offshore Licencing Round

Sterling Resources Ltd (TSXV:SLG)

Today : Monday 2 December 2013


CALGARY, Dec. 2, 2013 /CNW/ - Sterling Resources Ltd. (TSXV: SLG) ("Sterling" or the "Company") is pleased to announce that it has been successful in the UK 27th Offshore Licencing Round awards (second tranche), which were recently announced by the UK Department of Energy and Climate Change (DECC).

Sterling has been informed by DECC of the successful award of a licence covering Blocks 42/2(split), 42/3(split), 42/4, 42/5 & 36/30, which are located approximately 25 kilometres north of the Breagh gas field. Sterling Resources will be the operator of the licence with a 100 percent working interest. Work commitments for this traditional licence award include obtaining and reprocessing 2D seismic data and drilling a firm well within the traditional 4-year licence period.

"We have continued investigating further Carboniferous prospects in the area near to our Breagh gas field based on Sterling's database of 2D seismic data over all of these newly licenced blocks and in particular a re-interpreted 3D seismic survey over two of the blocks awarded in this round that was acquired by Sterling in 2010," stated David Findlater, Sterling's Vice-President of Exploration. "In addition to several Carboniferous prospects, we have identified an exciting Permian reef play that covers several of the blocks, which we believe has a significant potential resources possibility. We look forward to kicking-off our farm-out at PROSPEX 2013 sponsored by the Petroleum Exploration Society of Great Britain (PESGB) and the UK licencing authority DECC in early December in London," added Mr. Findlater.

"Sterling is extremely pleased with this award, which provides an opportunity to explore both more traditional and new plays close to our existing Breagh infrastructure," stated Jake Ulrich, Sterling's Interim CEO. "This fits very well into our strategy to build-up our North Sea portfolio around our existing acreage and infrastructure," added Mr. Ulrich.

Sterling is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France and the Netherlands. The common shares are listed and posted for trading on the Toronto Stock Exchange Venture (TSX-V) exchange under the symbol "SLG".

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Filer Profile No. 00002072

[gazhutch] 27/11/2013 00:40

Ouch 200,000 0.645 then 200,000 0.315

[gazhutch] 26/11/2013 17:15

Take that ^ as a good sign

[stockologist] 26/11/2013 14:28

they both have many other vehicles where they have done nothing or the stocks have gone down.

this one looks headed down much further

[gazhutch] 26/11/2013 14:11

Why does Leni want this then?Mr. Lenigas has extensive experience operating in global public markets having served in a senior executive capacity on many public company boards. He is currently the Executive Chairman of Rare Earth Minerals Plc, Leni Gas and Oil Plc, AfriAg Plc, Solo Oil Plc, Inspirit Energy Holdings Plc and various other AIM companies. He has also served as Executive Chairman of London listed Lonrho plc for six years up to September 2012 and was responsible for Lonrho plc's expansion into over 20 countries in Africa in sectors covering agriculture, infrastructure, hotels, IT and aviation.Donald Strang (proposed Non-executive Director), aged 45Mr. Strang is a member of the Australian Institute of Chartered Accountants and has been in business over 20 years, holding senior financial and management positions in both publicly listed and private enterprises in Australia, Europe and Africa. Mr. Strang has considerable corporate and international expertise and over the past decade has focused on mining and exploration activities in the oil and gas and natural resources sectors. He is currently finance director for AfriAg Plc, Rare Earth Minerals Plc, Polemos Plc, Doriemus Plc and Stellar Resources Plc.

[broncowarrior] 26/11/2013 11:08

Tried a dummy sell and was willing to give me 21 quid for the rump 300 quid worth I had left at .6 of a penny so not sure what is going on bearing in mind they are supposedly trading at .5 now.

[stockologist] 26/11/2013 09:44

Looks crazy

[stockologist] 26/11/2013 09:34

Not had time to check but is that Market cap right ?

[broncowarrior] 25/11/2013 14:17

Seems like they will have a punt on a natural resources company and hope it comes good. May I suggest HAWK or IAE.

[broncowarrior] 25/11/2013 14:09

Back from the grave?

[dukedosh] 21/11/2013 15:05

RBC note courtesy of dcj

Sterling Resources (SLG.V): Q3/13 results highlights
The company ended September with cash of C$77m, including C$30m restricted for ongoing
expenditures on Breagh and the first bond interest payment (paid at end of October). This is in
line with our C$74m forecast. The Q3 financials, which precede first gas from the Breagh field,
report a C$4.5m profit driven by forex gains of C$10.4m. The announcement includes no details
on future capex.
Consistent with recent updates on the Breagh field (onstream for 12 days in October-November
before being temporarily shut-in), management expects production to resume in mid January,
averaging 129MMcf/d gross (SLG 30%) during 2014, slightly ahead of our forecasts. Five wells
are now ready to produce with a sixth due to be ready during December, and drilling of the
seventh underway. The partnership is assessing the merits of hydraulically stimulating some of
the production wells to address disappointing production tests.
Elsewhere across the portfolio, development drilling at Cladhan in the North Sea is now
underway, with first oil on schedule for early 2015. Offshore Romania, Sterling is due to begin
the Muridava-1 exploration well soon, with a result likely in January/February. The company
intends to sell down stakes in all its Romanian licences during 2014; however, it continues to
await government approval for the agreed $29m sale of a part of the Midia licence to Exxon
and OMV Petrom.
Source: Company release, RBC Capital Markets estimates

[chessman2] 21/11/2013 09:49

I also feel pain and will never look at any Canadian based investments again!

[loglorry1] 21/11/2013 09:18

LSN you are forgiven for your swearing because I think you've have plenty of reason for it!

I feel your pain if it's any conciliation.

[dukedosh] 20/11/2013 23:03

Sterling Resources Announces Third Quarter Operating and Financial Results

CALGARY, Nov. 20, 2013 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG)("Sterling" or the "Company") an international oil and gas company with exploration and development assets in the United Kingdom, Romania, France and the Netherlands, announces interim operating and financial results for the quarter ended September 30, 2013. Unless otherwise noted all figures contained in this report are denominated in Canadian dollars.

For the three months ended September 30, 2013 the Company recorded net income of $4.5 million ($0.01 per share) compared with a net loss of $10.0 million ($0.04 per share) for the three months ended September 30, 2012 due to a year-over-year decrease in pre-licence costs attributable to lower activity levels, lower losses attributable to derivative financial instruments, a foreign exchange gain on the bond, all partially offset by one-time refinancing and strategic review costs. For the nine months ended September 30, 2013 the Company recorded a net loss of $24.4 million ($0.08 per share) compared with a net loss of $24.7 million ($0.11 per share) for the nine months ended September 30, 2012.

During the third quarter of 2013 the Company recorded a foreign exchange gain of $10.4 million due to the weakening US dollar (in which the bond is denominated) relative to the UK pound (which is the Company's UK functional currency), partially offset by US dollar bank balances. This foreign exchange gain offset losses incurred during the first half of 2013 which occurred due to the repayment of the UK pound denominated Credit Facility from the US dollar denominated bond as a result of the UK pound strengthening against the Canadian dollar. During the comparable period in 2012, a foreign exchange loss of $1.0 million was incurred due to the weakening of the US dollar relative to the UK pound.

For the nine months ended September 30, 2013 pre-licence and other exploration costs were $5.0 million a decrease of $7.5 million. Geographically $1.3 million (2012 - $4.6 million) related to licences in the United Kingdom, $2.1 million (2012 - $5.8 million) related to licences in Romania and $1.6 million (2012 - $2.0 million) related to licences in the Netherlands and other international ventures.

The 2012 pre-licence levels were higher due to seismic acquired and expensed for UK licences 42/13b, 42/17, and 42/18, Block 27 Muridava in the Romanian Black Sea and the E3/F1 licences in the Netherlands. Employee expense and general and administrative expenditures charged to exploration licences and expensed as pre-licence costs were higher YTD in 2013 than 2012 due to the different mix of projects being worked on during 2013.

Cash and cash equivalents at September 30, 2013 were $47.6 million compared to $9.4 million as at December 31, 2012. Restricted cash of $29.6 million ($21.9 million as at December 31, 2012) was comprised of $19.1 million devoted to Breagh related expenditures and $10.4 million to cover the initial bond interest payment which was paid on October 30, 2013. Net working capital was $60.0 million at September 30, 2013 significantly above the level at year-end 2012 due to debt refinancing activities, the reduction in Romanian drilling activity, and funds received from the issuance of equity, all of which was partially offset by funding for ongoing operational activity at Breagh.

The Company was pleased to finally announce that natural gas production commenced at the Breagh field in the UK Southern North Sea subsequent to the quarter end. Initial production at start-up on October 12th was 97 million standard cubic feet per day (MMscf/d) with production coming from three wells. The fourth and fifth wells had been made available by early November and the sixth well should be available in December. The seventh well is now being drilled from the Ensco 70 jack-up rig located over the Breagh Alpha platform and should be available for production early in the second quarter of 2014.

Production has been temporarily shut in since November 8th as a result of certain mechanical problems encountered at the inlet area of the onshore Teesside Gas Processing Plant, where gas from the Breagh field is processed. Intrusive work is required to rectify the issues. Remaining investigative work and known repair work should be completed by the middle of January 2014.

The operator RWE DEA (UK) and Sterling continue to review the productivity of the Breagh wells and potential remedial actions to address the disappointing production tests of some of the development wells. An eighth well has been agreed by the partnership to be drilled from the Breagh Alpha platform. Drilling is expected to start once the rig returns from the shipyard during the 2nd quarter of 2014. Additionally, the partnership is evaluating the benefits of hydraulically stimulating several of the current wells and possibly the eighth well.

Prior to the production shut down on November 8th, the field had produced on a total of 12 days since first gas on October 12th at various rates while the field and TGPP operations were stabilised as part of start-up procedures. Provisional sales (net to Sterling) over this period were GBP 1.5 million ($2.5 million). Average production in 2014, including the contribution from the eighth well, is now expected to be approximately 129 million standard cubic feet per day ("MMscf/d") (39 MMscf/d net to Sterling) with an exit rate at the end of 2014 of 114 MMscf/d (34 MMscf/d net to Sterling).

After discussions with the UK Department of Energy and Climate Change, a further extension to June 30, 2014 has been agreed for the submission of the Phase 2 field development plan. This will allow the partnership to optimise the further development of the field with a view to maximizing value.

In mid-October the first development well was spudded at the Cladhan field in the northern North Sea, utilizing the Transocean John Shaw drilling unit. This well will be drilled first as an appraisal well to the north of the field and then sidetracked to the development location as a water injector. The planned development at Cladhan, which is operated by TAQA Bratani, is for two subsea producer wells and the subsea water injector currently being drilled, all tied back 17 kilometres to the Tern platform also operated by TAQA. Work on the Tern platform has commenced with site preparation including the removal of existing redundant equipment to provide space for the new Cladhan processing equipment and flowlines. First oil production is expected to begin in early 2015. Pursuant to agreements with TAQA, Sterling's share of development costs will be carried through two separate carry arrangements which are planned to result in a final working interest of 13.8 percent for the Company by the third quarter of 2015.

Preparatory work, including the site survey, was conducted for the drilling of an exploration well on the UK North Sea Beverley oil prospect on block 22/26c, however due to a lack of rig availability drilling of this well has been delayed until 2014. The Beverley well is expected to be fully carried under the terms of a farm-out agreement.

In Romania, non-operated drilling of an exploration well on the Muridava block is expected to commence around the end of November and may take up to two months to complete. Interpretation of the 2D-seismic that was shot over the Midia and Pelican blocks continues, as does preparation for the Luceafarul block 3D-seismic shoot in late November 2013. The 2012 drilling results from the Ioana and Eugenia exploration wells on the Midia and Pelican blocks continue to be reviewed and further 3D-seismic is planned to be acquired during 2014 based upon this analysis. Sterling continues to move forward to close the sale and purchase agreement with ExxonMobil and OMV Petrom for the sale of the 65 percent interest in a portion of block 15 Midia in the Romanian Black Sea which was originally announced in October 2012. Closing of this sale requires the approval of the Romanian government which is actively being sought. The consideration payable to Sterling related to this transaction is US$29.25 million payable upon closing, with further contingent payments linked to future success on the portion of the block sold. The Company also intends to proceed with a sell-down of its equity interests in all of its Romanian Black Sea licences during 2014.

In the Netherlands, extensions have been granted on the F17 and F18 licences until August 2014, with a further three year extension available if the joint venture commits before then to 3D-seismic over the area. Preparation work in anticipation of acquisition of this seismic has commenced.

"The third quarter saw a number of changes at Sterling including a transition of leadership and as a result the Board continues the search process for a new CEO," stated Jake Ulrich, Sterling's Chair and Interim CEO. "Operationally the Breagh start-up is a transformational event for the Company and although the plant is currently temporarily shut-in, we look forward to using Breagh's cash flow in due course to accelerate value realization for shareholders. The Board is committed to moving forward judiciously with a capital plan that will maximize returns for Sterling's shareholders," added Mr. Ulrich.

Sterling is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France and the Netherlands. The Common Shares are listed and posted for trading on the Toronto Stock Exchange Venture (TSX-V) exchange under the symbol "SLG".

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Filer Profile No. 00002072

[dukedosh] 19/11/2013 23:55

* Another delay, 6-8 weeks. Ouch!

Sterling Resources announces further operational update for Breagh

Sterling Resources Ltd (TSXV:SLG)
Intraday Stock Chart
Today : Tuesday 19 November 2013

CALGARY, Nov. 19, 2013 /CNW/ - Sterling Resources Ltd. (TSXV: SLG) ("Sterling" or the "Company") announces that the key physical investigative work has been completed and has identified several damaged elements at the inlet area to the Teesside Gas Processing Plant ("TGPP") at Seal Sands, near Teesside on the east coast of England.

When gas reaches the TGPP, there is a buried junction at which point gas and liquids are taken off above ground to be processed in the plant, and any pigging devices are removed from the pipeline. The junction is fitted with bars ("Barred Tee-Junction") to guide the pigging devices to pigging reception facilities.

The key findings of the physical investigation to date are as follows:

Inspection of the junction has been completed by means of a remotely controlled camera, which showed that the bars within the junction are severely deformed;

After removal of the spool piece on the inlet to the gas/liquid separator two damaged pipeline spheres used in pigging operations to sweep the pipeline of liquids were found; and

Four thermo-wells between the Barred Tee-Junction and the inlet to the gas/liquid separator, which protrude into the gasline at the inlet to the plant, were severely deformed. Temperature probes in the thermowells were damaged, thereby creating the indications of abnormal conditions.
Remedial action plans are being developed for rectification of the surveyed damage. Preliminary estimates for return to production is six to eight weeks. A full root cause investigation into the occurrence is ongoing.

"The initial physical investigations have identified areas of immediate repair which are being addressed on an urgent basis," stated John Rapach, Sterling's Chief Operating Officer. "We are concerned at this occurrence and are working closely with our partner RWE Dea to ensure a thorough understanding of the event. Once the root cause investigation is complete, a full statement on both progress of repairs, and definitive work scope and schedule will be made," added Mr. Rapach.

The Breagh field is located in UKCS blocks 42/12a and 42/13a of the Southern North Sea in 62 metres water depth, approximately 100 kilometres east of Teesside. Gas is exported via a 20-inch pipeline from the Breagh Alpha platform to Coatham Sands, Redcar on the UK mainland, and then via an 11 kilometre buried onshore pipeline to the TGPP at Seal Sands for processing. The TGPP site is owned by North Sea Midstream Partners and after processing at the TGPP, the gas enters the UK National Transmission System. During 2009, RWE Dea UK acquired its current 70 percent interest in the Breagh gas field and became operator, with Sterling retaining the remaining 30 percent.

Sterling is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France and the Netherlands. The Common Shares are listed and posted for trading on the TSX-V under the symbol "SLG".

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Filer Profile No. 00002072

Forward-Looking Statements

All statements included in this news release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. In addition, statements relating to expected production, reserves or resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future.

These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.

Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the news release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.

Financial outlook information contained in this news release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein.

SOURCE Sterling Resources Ltd.


Copyright 2013 Canada NewsWire

[dukedosh] 19/11/2013 21:54

20th November - Sterling Resources Q3 Results - according to RBC.

[dukedosh] 19/11/2013 21:53

No. They are using the other 2 pipelines. The new 20" pipe is just for Breagh gas.

[backtothesoil] 19/11/2013 21:50

The national grid website only shows two producers into the grid from Teeside - BP & PX.
Are the 20 cos. you mentioned sharing the PX line with Breagh?

[dukedosh] 19/11/2013 21:36

I believe so. The new pipe line was built for the new Breagh gas.

There are also around 20 other companies using the other 2 gas pipelines (CATS and Norpipe) to the PX operated TGPP.

[backtothesoil] 19/11/2013 20:21

The PX line at teeside is currently producing 5mcm a day. Is this line only carrying Breagh gas? A separate line is carrying BP gas also carrying 5mcm.
I've looked but can't find an answer.

[wbodger] 14/11/2013 00:19

Here we go again:
hxxp://tmx.quotemedia.com/article.php?newsid=63925421&qm_symbol=SLG

"Investigations conducted ... have indicated some irregularities with equipment, which require intrusive work to rectify. Remaining investigative work and known repair work are estimated to take a period of two weeks before the plant can be restarted."