Sterling Resources Ltd. is pleased to announce its results for the year ended December 31, 2007. The net loss for the year was $1.8-million ($0.02 per common share) compared to $1.2 million ($0.01 per common share) in 2006. Capital spending for 2007 was $10.1 million compared to $30.1 million in 2006. Working capital at December 31, 2007 was $10.9 million compared to $21.1 million at December 31, 2006.
Key operational achievements for 2007 included:
- the successful Breagh well (Sterling 45 percent after farm-out) on UK offshore Block 42/13 which tested gas at flow-rates of up to 17.6 million standard cubic feet of gas per day (MMscf/d);
- the successful farm-out and drilling of the Doina Sister well (Sterling 65 percent after farm-out) on the Midia Block offshore Romania. This well was completed and tested after year-end, flowing at stabilized rates of up to 19.2 MMscf/d; and
- the addition of six new licenses covering 13 Blocks or part-Blocks in the 24th UK Offshore Licensing Round. Several of these Blocks form a natural exploration extension in areas adjacent to the Breagh discovery, where additional appraisal drilling is planned for 2008.
Other corporate activities during 2007 and early 2008 included:
- the January 11, 2008 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 March 13, 2008 completion of a bought deal financing of 14,000,000 common shares at $2.50 per share with a syndicate of underwriters, and the subsequent exercise of an over-allotment option to purchase an additional 2,000,000 common shares at $2.50 per share on March 25, 2008, for aggregate net proceeds of $37.45 million.
Mr. Stewart Gibson, CEO, said "The successful Breagh and Doina Sister wells together represent the most important milestones in the Company's history and have had a significant impact on our Company's resource base. As a result our forward strategy has been re-focused to ensure these projects are brought into production in a timely manner. The two equity issues in early 2008 will also provide the financial flexibility to further our plans for 2008. We are, however, mindful of our original growth strategy and are pleased to report that we are continuing to increase our prospect portfolio, as well as maturing prospects towards drilling status, including the blocks added in last year's 24th UK Offshore Licensing Round."
Sterling has filed its Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2 - Report on Reserves Data by Independent Qualified Reserves Evaluator, and Form 51-101F3 - Report of Management and Directors required under National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities. These Forms have been included in Sterling's Annual Information Form, dated April 16, 2008, for the year ended December 31, 2007. -- www.cnxmarketlink.com
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