Sterling Energy H1 loss widens

Wed 23 Sep, 2009 07:12

(Reuters) - Sterling Energy (SEY.L) reported a wider first-half pretax loss due to a surge in asset impairment charges and fall in revenue, and said that it would sell its U.S. assets to repay debt.

Separately, the company said rig contract for the drilling of the first exploration well on the Sangaw North-1 licence in Kurdistan, Iraq had been awarded to Sakson Egypt and that the well was planned to spud in the fourth quarter of 2009.

The company, which plans to conduct a full review of its exploration and production assets, said asset impairment charges rose 33 percent for the period while revenue fell 24 percent.

"We believe the U.S. assets are not part of our future and will continue the process to dispose of them at the earliest appropriate time and at the right price," Executive Chairman Alastair Beardsall said in a statement.

The company reported a wider pretax loss of $46.5 million (28.4 million pounds) compared with $31.5 million year ago. Revenue fell to $43.3 million from $56.7 million a year ago.

Sterling Energy, with interests in the Gulf of Mexico, Africa and the Middle East, said its non-cash impairment write-downs rose to $40.6 million from $30.4 million year ago.

The company, which raised 62.5 million pounds through a placing of shares, said it planned an open offer of 2 new shares for 9 existing shares at 1.3 pence a share to raised up to a further 20.6 million pounds.

Sterling Energy shares were up about 4 percent at 3.98 pence by 8:06 a.m. on the London Stock Exchange.

(Reporting by Ramkumar in Bangalore; Editing by Gopakumar Warrier)