Losses widen for Sterling Energy

Upstream oil and gas company Sterling Energy saw losses widen in its third quarter as its Chinguetti oil field off the coast of central Mauritania came near to the end of its production life.

Sterling posted a net loss of $4.3m in the three months leading to 30 September compared to the $420,000 loss it reported a year earlier due to the company's net production from Chinguetti dropping from an average of 351 barrels of oil per day (bopd) in the third quarter of 2016 to just 188 bopd twelve months later.

Adjusted earnings before interest, tax, depreciation and amortisation and exploration expenses (EBITDAX) came in at a loss of $1.4m against the previous year's figure of $992,000.

The group remained debt free through the quarter, but net cash did decline to $83.1m from $91m a year earlier.

Chief executive Eskil Jersing said, "The primary focus of the company over the last 18 months has been to continue to originate, conduct full due diligence and ultimately execute transformative growth driven M&A projects in North Africa and the Middle East."

"The company remains confident that it can identify and source the right asset led or corporate solution to drive growth and shareholder value in the near term," he said.

As of 1130 GMT, shares were untraded at 14.50p.