Business Weekly - Cambridge, UK
| Sterling is raising £97 million |
| Written by Business Weekly | |
| Tuesday, 16 November 2004 | |
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Sterling Energy has entered an underwriting agreement that will enable it to raise the funds needed to underpin its new strategic partnership with the Mauritanian Government.
Sterling Energy has entered an underwriting agreement that will enable it to raise the funds needed to underpin its new strategic partnership with the Mauritanian Government. Following an intense schedule of meetings with potential investors, the Herts oil and gas firm entered into an agreement with Evolution Securities to raise £97 million. Sterling will seek shareholder approval next week. Sterling announced a conditional funding agreement with the West African country to share in the revenues from its 12 per cent interest in the 120 million barrel Chinguetti offshore oil field at the end of October. At the time, Sterling CEO, Harry Wilson, called the deal “stunning,” saying it established the company as a key player in Mauritania, one of the global hotspots for oil exploration and development activity. The latest statement from Sterling stated the company had been “delighted by the response that the proposed investment in Mauritania and the placing has received both from new and existing shareholders of the company.” Application will be made for the 570,588,235 new ordinary shares to be admitted to trading on AIM. It is expected that dealings will start on November 19. The Chinguetti oil field, due on stream in early 2006, and operated by Woodside, is expected initially to produce 75,000 barrels of oil per day. |
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