Sterling Resources Announces Financial Update
Published : February 06, 2013
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Debt | Market | Netherlands | Oil | Volatility |

Sterling Resources Announces Financial Update

CALGARY, Feb. 6, 2013 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or "the Company") announces details of its current financial position and its financing plans.

Current financial position

At the end of 2012, the Company had CAD 28.1 million of cash and cash equivalents on a group basis, including amounts restricted under the Breagh credit facility and Romanian JV accounts but excluding amounts still held in escrow relating to the drilling of wells in the first half of 2012.  Early in January 2013, this was supplemented by the receipt of USD 12 million of loan proceeds from Vitol in accordance with the loan agreement signed on December 31, 2012 (as announced on January 8, 2013) and by USD 4.3 million from TAQA as the second part of proceeds for the sale of a 13.5 percent interest in the Cladhan field (as announced in April 2012).  On a pro forma basis, reflecting these receipts and the transfer of some funds into the Equity Contribution Account ("ECA", an account restricted under the Breagh credit facility to be used for Breagh-related costs), the Company started 2013 with CAD 44.4 million of available funds, of which CAD 24.0 million was in the ECA, CAD 8.0 million was in other UK and Netherlands accounts (also largely restricted in an agreement reached with the lending banks, to be used for agreed technical and general and administrative costs), and CAD 12.3 million was in Canadian and Romanian accounts.

The Company is deferring payment schedules with a number of key suppliers in order to extend available funds well into March, by which time the Company is confident it will have additional financing to fund the group through to mid 2013.

Total financial debt at the end of 2012 was GBP 87.9 million (CAD 140.7 million), representing borrowings under the Breagh credit facility.  In early January 2013, additional debt of USD 12 million (CAD 11.9 million) was assumed upon completion of the Vitol loan.

Financing plans

A number of equity and mezzanine financings have been considered by the Company to raise approximately CAD 50 million or more to cover expenditure requirements in the first half of 2013 and into the third quarter.  This would provide adequate funding to end June 2013.  In addition, upfront cash proceeds of USD 29.25 million from the sale of a portion of the Midia licence to ExxonMobil/OMV Petrom (as announced in October 2012) are expected in March or April 2013 following government and regulatory approval, although these are currently pledged to repay the Vitol loan as part of its Romanian security package (and the Breagh credit facility lenders have a second ranking charge over this security package).  However, there is no certainty that the funds will be received in this timeframe. Progress continues towards a wider sell down of offshore licenses, which could provide additional funds in the second quarter of 2013 and a carry of E&A expenditures.  In relation to Cladhan, the Company is pursuing an industry-based solution to funding development expenditure.

The Company has engaged a financial advisor to proceed with a high yield bond issue in the second quarter of 2013.  Such an issue would be used to repay the existing Breagh credit facility in its entirety, to repay any short term debt as part of the short term CAD 50 million (indicative) financing referred to above, and to provide additional funds to be used towards Breagh Phase 2 and (if required) Cladhan development expenditures.  The size of such a high yield bond issue could be in the order of USD 250 million.  By refinancing the Breagh credit facility, the Company will be able to access Breagh Phase 1 cash flows from June 2013 onwards, rather than having to wait until project completion is achieved under the Breagh credit facility, which is expected to be around mid 2014.  Such cash flows can be used towards Breagh Phase 2 and (if required) Cladhan development expenditures, as well as other corporate activities.

Forward-Looking Statements

All statements included in this news release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. In addition, statements relating to reserves or resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future.  In particular, this document contains forward-looking information and statements regarding: (i) the intended use of proceeds from the anticipated sale of assets and financings, and (ii) future capital expenditures and projects.

These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.  In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations.  Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.

Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.  Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements.  These statements speak only as of the date of the news release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.

Financial outlook information contained in this news release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available.  Readers are cautioned that such financial outlook information contained in this press release should not be used for purposes other than for which it is disclosed herein.

SOURCE: Sterling Resources Ltd.

For further information:

Filer Profile No. 00002072

For further information: visit or contact:

Mike Azancot, President and Chief Executive Officer, Phone: 44-20-3008-8488, Mobile: 44-7740-432883,

David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804,

George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912,

Data and Statistics for these countries : Netherlands | All
Gold and Silver Prices for these countries : Netherlands | All

Sterling Resources Ltd

ISIN : CA8589151015
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Sterling Res. is a producing and oil company based in Canada.

Sterling Res. holds various exploration projects in Romania.

Its main exploration properties are BOAR and CRAIOVA in Romania.

Sterling Res. is listed in Canada and in United States of America. Its market capitalisation is CA$ 30.2 millions as of today (US$ 23.5 millions, € 19.2 millions).

Its stock quote reached its highest recent level on February 04, 2011 at CA$ 4.94, and its lowest recent point on July 04, 2016 at CA$ 0.01.

Sterling Res. has 147 190 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Financings of Sterling Resources Ltd
11/28/2014Announces Financing Arrangements and Provides Operational Up...
3/5/2013Announces Closing of First Tranche Private Placement Common ...
Nominations of Sterling Resources Ltd
7/24/2015Announces Appointment of Strategic Financial Adviser
12/22/2014Appoints New Director
Financials of Sterling Resources Ltd
5/21/2015Announces First Quarter Operating and Financial Results
11/7/2014announces third quarter operating and financial results
8/7/2014announces second quarter operating and financial results and...
5/23/2014Announces First Quarter Operating and Financial Results
8/20/2013announces second quarter operating and financial results
5/21/2013announces first quarter operating and financial results
4/29/2013Announces 2012 Operating and Financial Results
11/21/2012Announces Third Quarter Operating and Financial Results
Project news of Sterling Resources Ltd
5/2/2014Announces Filing of Executive Summaries of Reserves Reports
12/30/2013Announces Restart of Production from Breagh
10/14/2013announces commencement of production at Breagh
12/12/2012Announces Breagh Development Production Test Results
Corporate news of Sterling Resources Ltd
7/6/2016Sterling Resources Reports Results of Annual and Special Mee...
5/31/2016Sterling Resources Closes Recapitalization
5/30/2016Sterling Resources Announces Anticipated Completion of Recap...
5/25/2016Sterling Resources Files Executive Summaries of Reserves Rep...
5/20/2016Sterling Resources Announces First Quarter Operating and Fin...
5/16/2016Sterling Resources Provides Reminder of Expiry Date of Right...
4/21/2016Sterling Resources Files Final Rights Offering Prospectus
4/19/2016Sterling Resources Announces 2015 Operating and Financial Re...
1/18/2016Sterling Resources Announces Operational and Corporate Updat...
12/21/2015Sterling Resources Announces Revision of Independent Directo...
11/19/2015Sterling Resources Announces Third Quarter Operating and Fin...
11/6/2015Sterling Resources Announces Approval of Further UK Bond Ame...
10/28/2015Sterling Resources Provides Updated Corporate Presentation T...
10/22/2015Sterling Resources Summons Bondholders Meeting
10/22/2015IIROC Trading Resumption - SLG
10/22/2015IIROC Trading Halt - SLG
10/13/2015Sterling Resources Notes Announcement of Sale of Dea UK to I...
8/27/2015Sterling Resources Announces Completion of Sale of its Roman...
8/26/2015Sterling Resources Announces the Issuance of Stock Options
8/20/2015Sterling Resources Announces Breagh Field Reserves and NPV U...
8/6/2015Sterling Resources Announces Second Quarter Operating and Fi...
7/24/2015Sterling Resources Announces Appointment of Strategic Financ...
7/6/2015Sterling Resources Announces Operational and Financial Updat...
7/6/2015Announces Operational and Financial Update
6/16/2015Petroceltic exits Romania, sells unit to GVC Investment
6/16/2015Sterling Resources Completes Sale of Muridava Block in the R...
6/16/2015Completes Sale of Muridava Block in the Romanian Black Sea t...
5/29/2015Sterling Resources Reports Results of Annual and Special Mee...
5/21/2015Sterling Resources Announces First Quarter Operating and Fin...
5/8/2015Sterling Resources Announces Approval of Further Bond Amendm...
5/8/2015IIROC Trading Resumption - SLG
5/8/2015announces approval of further bond amendments
5/8/2015IIROC Trading Halt - SLG
4/23/2015Sterling Resources Summons Bondholders Meeting
4/23/2015Summons Bondholders Meeting
4/23/2015Summons Bondholders Meeting
4/23/2015Summons Bondholders Meeting
4/23/2015Ownership row may threaten output at large British gas field...
4/18/2015Sterling Resources Announces 2014 Operating and Financial Re...
3/30/2015Sterling Resources Announces Filing of Annual NI 51-101 Rese...
3/27/2015Sterling Resources Announces Filing of Annual NI 51-101 Rese...
3/26/2015The Carlyle Group to acquire Sterling Resources Ltd.’s Roman...
3/26/2015Sterling Resources Announces Sale of its Romanian Business
3/26/2015Sterling Resources Provides Update On The UK Breagh And Clad...
3/26/2015announces sale of its Romanian business
3/12/2015Provides Update on the UK Breagh and Cladhan Fields
3/12/2015Sterling Resources Provides Update on the UK Breagh and Clad...
2/6/2015Sterling Resources Announces Results of Crosgan Well
2/5/2015Sterling Resources Announces Results of Crosgan Well
1/12/2015Sterling Resources Announces Operational, Financial And Stra...
1/12/2015Announces Operational, Financial and Strategic Update
12/23/2014Sterling Resources Appoints New Director
12/22/2014Sterling Resources Appoints New Director
12/12/2014Sterling Resources Announces Approval of UK Bond Amendments
12/12/2014announces approval of UK bond amendments
11/28/2014Sterling Resources Announces Financing Arrangements And Prov...
11/11/2014Sterling Resources Announces Third Quarter Operating And Fin...
10/27/2014Announces Operational and Financial Update
10/2/2014Announces Successful Breagh Well A08 Fracture Stimulation an...
9/10/2014to Present at the Pareto Oil and Offshore Conference in Oslo
7/25/2014Closes US$32 Million Equity Private Placement
7/15/2014announces US$32 million equity private placement
7/1/2014Announces Operational and Expenditure Update
6/16/2014Announces Successful Breagh Well A07 Fracture Stimulation an...
5/30/2014Announces Romanian Offshore Well Results
4/16/2014Announces 2013 Operating and Financial Results and NI 51-101...
3/13/2014to present at the Pareto Securities E&P Independents Confere...
2/19/2014(Boar)announces management, board and operational update
1/29/2014Completes Sale of a Portion of the Midia Block in the Romani...
12/2/2013Announces Success in the UK 27th Offshore Licencing Round
11/13/2013Announces Operational Update at Breagh
10/8/2013announces Breagh well A06 test results
9/23/2013provides update regarding Breagh
8/29/2013Announces Management Change
7/2/2013Announces Revised Breagh Phase 2 Sanction Date and Breagh Op...
6/12/2013reports results of annual and special meeting
5/13/2013Announces Agreement with Significant Shareholders to Support...
4/16/2013' Special Committee Responds to Vitol Group
4/8/2013Announces Proposed High Yield Bond Issue, Cladhan Farm-Down ...
4/3/2013Announces UK Operational Update and By-Law Amendments
3/26/2013announces 2012 year-end NI 51-101 reserves and resources inf...
3/11/2013Closes $63.25 Million Equity Financing
3/11/2013Closes $63.25 Million Equity Financing
2/19/2013Announces $55 Million Bought Deal Offering and Continuation ...
2/13/2013responds to unsolicited takeover bid
2/6/2013Announces Financial Update
1/8/2013Announces Closing of US$12 Million Bridging Loan
12/31/2012Announces Bridging Loan for US$12 Million and Further Financ...
12/31/2012Announces Bridging Loan for US$12 Million and Further Financ...
11/29/2012Announces Farm Out Agreement of UK License P1792
7/21/2011Announces Signing of Loan Facility for Breagh Development
10/2/2007 Common Shares Trade on the TSX
9/28/2007Common Shares to Commence Trading on the TSX
8/8/2007 in Final Commissioning of Silver Summit Hoist at Sunshine M...
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 0.205
04/23 16:39 -0.010
Prev close Open
0.210 0.210
Low High
0.205 0.210
Year l/h YTD var.
0.200 -  0.245 2.50%
52 week l/h 52 week var.
0.130 -  0.980 -76.97%
Volume 1 month var.
3,000 2.50%
24hGold TrendPower© : 26
Explores for
Interactive chart Add to compare
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 6.13+2.00%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 3.50-1.69%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.62-3.72%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.14-3.57%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.56-3.45%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 2.08-2.80%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 2.87-2.71%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.22-4.35%Trend Power :
Closes Bridge Loan Financing
CA$ 2.29+0.00%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 4.85-3.58%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 8.32-2.00%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.07+7.69%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.23+0.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 0.55+0.00%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 0.30-3.23%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 35.43+0.08%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.14+0.00%Trend Power :