Oil price sees volumes, earnings shrink at Sterling Energy

25th Apr 2016 11:02

(ShareCast News) - Sterling Energy was bearing the brunt of the oil glut in its first quarter, reporting much lower production and earnings in an interim management statement on Monday.The AIM-traded company reported net production to the company from the Chinguetti field averaging 106 barrels of oil per day, down significantly from 382 barrels per day in 2015.Its adjusted loss before interest, tax, depreciation, amortisation and exploration expense for the group came to $2m (£1.38m) for the quarter, widening from the $0.88m loss in the first quarter last year.Sterling made a loss after tax of $5m, a sizeable widening from 2015's $0.82m, with the company partly blaming the full impairment of PSC C-3, a block located in shallow water offshore Mauritania after disappointing technical evaluation.At period end, Sterling had zero-debt cash of $95.2m, including joint venture partner funds of $0.42m.At 1040 BST, shares in Sterling Energy were down 1.52% at 16.25p.