Sterling Energy plc today announces its results for the six month period ending 30 June 2019.

The Company is an experienced operator of international exploration and production licences, with a primary geographic focus on emerging markets including, Africa and the Middle East, although the Board would consider other regions for material opportunities. The Group has a high potential exploration asset in Somaliland and an active strategy to deliver shareholder value through disciplined, exploration and production projects; leveraging the Company’s experience, with an emphasis on securing near term cash flow generative opportunities.

Operations summary

• Odewayne block, Somaliland - Operating Committee Meeting (‘OCM’) held early March where the work program for 2019 was finalised by the Joint Venture (‘JV’) partners, including the reprocessing of 1,000km of 2D seismic to Pre-Stack Time Migration (‘PSTM’).
• The reprocessing of 1,000km of 2D seismic data to Pre-Stack Time Migration commenced early in the second quarter and is currently ca. 45% complete. Delivery of final products is expected for mid Q3 2019.
• Sterling continued to support the Operator in progressing the technical understanding of the block. Corporate summary
• Continued merger and acquisition (‘M&A’) mandate for transformational growth (asset and corporate options).

Financial summary

• Adjusted EBITDAX loss of $417k (1H 2018: loss $932k).
• Loss after tax of $645k (1H 2018: loss $1.1 million).
• Cash resources as at 30 June 2019 of $45.5 million (30 June 2018 of $46.9 million).
• The Group remains debt free and fully carried for Odewayne operations (Third and the Fourth Period).
• Ongoing focus on capital discipline, cash general and administrative overheads (‘G&A’) expenses reduced by ca. 25% to $1.2 million (1H 2018: $1.6 million).
• Proactive focus on treasury management, with interest received totaling $574k (1H 2018: $477k).

Operations
During the first two quarters of 2019, work on the Odewayne block in Somaliland was focused on the reprocessing to Pre-Stack Time Migration of the full 2D seismic dataset that was acquired in 2017. Sterling continues to support the operator and are looking forward to receiving final deliverables by mid Q3 2019. The costs associated with the current period (Third Period) and the Fourth Period are fully carried by Genel Energy Somaliland Limited (‘Genel Energy’).