Sterling's UK Sale Completed

Calgary-based Sterling Resources said late May 16 it had completed the sale of its UK subsidiary SRUK to Dutch independent Oranje-Nassau Energie (ONE). It said total cash proceeds from the deal were US$113.8mn, broadly what it expected when it announced the deal two months ago.

Sterling says that it no longer has active business operations or assets, other than the cash proceeds from the transaction which it plans to distribute to shareholders, once all outstanding liabilities of the company are settled according to its previously announced wind-up scheme.

SRUK’s key asset is the 30% working interest in the Ineos-operated Breagh gas field in the UK southern North Sea but it also holds 2% in the Cladhan production licence and various other exploration licenses in the UK and the Netherlands.

Breagh net production to SRUK in 2017 is estimated to be 3,000 boe/d, boosting ONE’s net production from 22,000 to over 25,000 boe/d. Breagh's operator with a 70% interest is UK independent Ineos.

Breagh's production at 100% equity of 1.06bn m³ (2015 figure) represents about 2.5% of UK gas production.

The Canadian company is not to be confused with AIM-listed Africa explorer Sterling Energy.

Mark Smedley