Sterling Energy reduces FY pre-tax loss on lower revenue, expenses

Production, net to the company from the Chinguetti field, averaged 279 barrels of oil per day (bopd), down from 310 bopd a year earlier.

For the 12-month period, pre-tax loss was $8.8m, from $15.2m, with revenue coming in at $4.8m, from $5.0m. Total administrative expenses fell to $11.4m, from $14.2m.

"Sterling is fully funded for all of our asset level commitments and liabilities through a strong balance sheet with cash resources of $88.1 million as at 31 December 2016," said chief executive Eskil Jersing in a statement.

Jersking said Sterling had the potential to deliver material value to shareholders in the Somaliland and Mauritania assets over the next few years.

"We look forward towards the completion and interpretation of the Somaliland regional 2D seismic survey in the second half of 2017 and the C-10 JV drilling a material exploration well in 2018," the CEO added.

"On the growth front, we restructured our capability set in 2016 to focus on M&A led due diligence efforts. As a result we undertook lengthy evaluations on a number of projects. We will continue on this M&A led mandate in 2017, with the intent of originating, delivering and executing on a transformative asset or corporate solution."

At 13:08 GMT, shares in AIM-listed Sterling Energy were flat at 16p each.