Sterling third quarter disappoints

19th Oct 2011 08:46

Oil and gas firm Sterling Energy saw lower earnings and revenues in the third quarter. Revenue for the quarter fell to $2.87m (2010 Q3: $6.18m) although production equalled that of the corresponding period at an average 622 barrels of oil per day (bopd) (2010 Q3: 21 bopd). Earnings before interest, taxes, depreciation, and amortization were down by more than $1m at $1.7m, compared to $2.8m in the same period a year before, while profit after tax was significantly lower at $0.05m (2010 Q3: $3.1m). The company said that the farm-out of the Ntem deep water block in Cameroon is expected to close by year end.Angus MacAskill, Sterling's Chief Executive, said: "We are pleased with the progress made towards introducing a partner to the Ntem block in Cameroon and expect to complete the process by the end of 2011."Following disappointing results of the Sangaw North-1 well in Kurdistan, we continue to integrate all the information from the well to determine the remaining potential of the block."The focus for the Sterling organisation is the acquisition of new ventures whilst remaining ready to progress our existing assets once the in-country situations allow."The group's cash at the end of the period was $105.6m, close the full year figure last year of $111.6m.NR