Sterling Energy plc was formed in October 2002 by the reversal of Sterling Energy Limited into Lepco plc, following which it was renamed Sterling Energy plc. The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange (Symbol: SEY).
The growth of the company has been rapid, the key events over this period have been:
October 2002 - Listing on AIM
December 2003 - £40 million acquisition of Fusion Oil & Gas plc
February 2004 - $40 million Osprey production acquisition
November 2004 - £97 million share placing and Chinguetti Funding Agreement
May 2005 - Farmout of Ambilobe and Ampasindava blocks in Madagascar to Exxon Mobil
July 2005 - Listing of Forum Energy on AIM in which Sterling holds approximately 14%
February 2006 - First production from the Chinguetti oil field in Mauritania
February 2006 - MOU signed with Kurdistan Regional Government of Iraq for an onshore exploration block
March 2007 – $145m acquisition of Whittier Energy Corporation, a US listed company with assets onshore Texas, Louisiana, Mississippi and in the Permian Basin
Sterling now has interests in a number of producing gas fields in the United States, operating 21 offshore platfoms in the Gulf of Mexico and 16 onshore fields. The Fusion acquisition added a broad exploration portfolio in West Africa, stretching from Mauritania to Gabon. This includes a production royalty interest in PSCs A and B, offshore Mauritania. The royalty includes the Chinguetti, Tiof, Banda and Tevet fields, together with all future discoveries in these PSCs.
In November 2004, Sterling signed an agreement with the Mauritanian government whereby Sterling would provide all finance to the government company (GPC, now SMH) to fund its 12% share in the development of the offshore Chinguetti field. In return, Sterling will receive cost recovery of its investment and a share of the "profit oil". Production commenced in the Chinguetti field in February 2006.
In addition, in late 2004, Sterling acquired two large exploration licences in Madagascar where the geological and seismic data indicated the potential for a prospective basin. Following approaches from a number of companies, a farm-out deal was signed with Exxon Mobil in May 2005 whereby Sterling receives a 30% carry on a work programme of up to $100m.
In July 2005, Sterling “spun off” its Reed Bank licence, offshore Philippines into a new company – Forum Energy plc – which has a portfolio of assets in the Philippines. Sterling has a 14% equity interest in Forum.
In March 2007, Sterling completed the acquisition of Whittier Energy Corporation which increased 2P reserves to 24.5 Mmboe and production levels to approximately 6,500 boepd as well as providing over 90 probable and possible incremental drilling locations to the Sterling US portfolio.
