Sterling Energy unveils annual loss

Oil and gas company Sterling Energy posted an annual loss on Monday following a drop in production and impairment from the termination of its Sangaw North block in Kurdistan.

Oil and gas company Sterling Energy posted an annual loss on Monday following a drop in production and impairment from the termination of its Sangaw North block in Kurdistan.

The group reported a loss of £12.9m for 2012, compared to a profit of $18.4m the previous year.

Sterling Energy was hit by an impairment of $18.4m after relinquishing its five-year agreement on the Sangaw North block following "disappointing results" from the prospect.

Advertisement - Article continues below

"Whilst the outcome is disappointing, we believe the initial resource potential of the Sangaw North block, a view shared by Addax when they farmed-in and paid for our drilling costs, justified our own financial exposure in this project," the firm said in a statement.

A 17% year-on-year decrease in production to 523 barrels of oil per day also pulled down results.

The reduction was mainly due to operational difficulties including a hydrate blockage that halted output for 17 days and a failure of subsea which caused a nine-day stoppage, the company said.

Nevertheless, revenues jumped to $22.5m from $19.1m and the cash balance at year-end rose to $120.3m from $115.m. Revenues were driven by a 28% rise to 2.6m barrels of gross volumes lifted and sold.

During the year the company received $12.7m of net cash flow in Chinguetti field operations and reached an agreement for the prolongation of exploration licences in Madagascar.

Sterling said it would be searching for new ventures to add to its portfolio in 2013.

"We will look both within and beyond our legacy areas for the right opportunity but remain focused on acquiring only those ventures which we believe will deliver real growth and value for our shareholders," the group said.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular


House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020

Have small companies lost their edge?

SPONSORED CONTENT – The tectonic plates beneath the modern investing landscape appear to have started moving in new directions
26 Jun 2020