LONDON (SHARECAST) – Sterling Energy shares slipped after it noted operational “challenges” in a number of prospects.
Shares fell 4% on a comment that “drilling operations remain challenging” at its Sangaw North #1 well in Kurdistan.
Flow test of two zones have demonstrated that hydrocarbons are present but neither test delivered commercial flow rates.
The progress at its Ntem block in offshore Cameroon also remains slow as the group awaits a resolution to the border dispute between the governments of Cameroon and Equatorial Guinea, “but no specific timetable can be forecast”.
The Ampasindava block is Madagascar is also experiencing governmental issues as the group looks “for an improvement in the political situation before undertaking any significant expenditure.”
Sterling made a profit of $3.14m in the third quarter. Cash at the end of September totalled $110m.