Sterling Resources sells stake in Romanian offshore block

"The consideration for the transaction payable to Sterling is US$29.25 million [22.4 million euro] upon completion, a contingent payment of US$29.25 million upon satisfaction of certain conditions relating to a hydrocarbon discovery made on the Sale Portion, and a further contingent payment of US$19.5 million upon first commercial production from the Sale Portion," the company said in a statement filed to the TSX Venture Exchange.

The sale portion is on the southeastern margin of the block, in deeper waters and covers 125,000 gross acres, or 11% of the total area of the Midia and Pelican concession. It contains the newly determined Anca and Maria prospects and is adjacent to EMEPR's and OMV Petrom's deep water Neptun block containing the Domino-1 gas discovery well some 35 kilometres to the southeast.

As part of the same sale agreement, Sterling's partner Petro Ventures Europe BV is also selling its 20% interest in the sale portion.

"The sale does not include any of the discoveries or other prospects in the Midia block and will not be affected in any way by the results of the Ioana-1 well currently being drilled," the company said.

The previously announced process for the partial divestment of Sterling's interest in the Luceafarul, Midia and Pelican blocks continues, excluding the sale portion. The company will not be proceeding with the possible sale of its interest in the Cladhan field in the UK North Sea at the moment, it added.

"This carve-out and sale of an area in deeper waters allows us to focus on the development and exploration of fields and prospects in shallower waters, where drilling and construction should be less expensive," Sterling's president and CEO Mike Azancot said in the statement.

Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta, with assets in the UK, Romania, France and the Netherlands.

($=0.7651 euro)