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Sterling Energy plans to sell its US business and
invest the proceeds in projects in Kurdistan
6.4.2008
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Sterling Energy eyes L150m US sell-off
April
6, 2008
Sterling Energy, the Aim-listed oil and gas
exploration and production group, plans to sell its
US business.
The operations, which include offshore assets in the
Gulf of Mexico and onshore sites in Texas and
Louisiana, are valued by analysts at about L150m -
more than Sterling's entire stock market value.
Sterling is believed to be close to appointing City
advisers to manage the sale, which could wipe out
its L70m debt, though the cash is expected to be
reinvested in other parts of the business.
It would be the first major action by new chief
executive Graeme Thomson, who moved up from finance
director in February. Sterling's US business
recently raised production after a gas find in
Texas,www.ekurd.net
which Thomson described
as 'very pleasing'. |
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Sterling is expected to invest the proceeds in
projects in autonomous Kurdistan region and
Madagascar that analysts believe have huge
potential.
"In particular, I am very excited about Kurdistan
and Madagascar where independent studies have
indicated a combined unrisked net economic value at
potentially over $2 billion if both prospects are
successful at the best estimate level," Chief
Executive Graeme Thomson said in the statement.
Entrepreneur Denis O'Brien, a rebel investor in
fellow Irishman Tony O'Reilly's Irish News and Media
group, has built up a 9.08% stake in Sterling.
Shares closed last week at 81p, valuing the company
at L140m.
Information for this report was provided by,
thisismoney co.uk | Reuters | sterlingenergyuk com
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