Somalilandsun:Sterling Energy issued its interim management statement and financial results for the first quarter ended 31 March on Wednesday, as trial line 2D processing remained ongoing at the Odewayne block in Somaliland.
The AIM-traded firm said that on the corporate front, the search for a replacement CEO was also ongoing.
Its board was also retaining a continued merger and acquisition mandate for growth, with both asset and corporate options apparently on the directors’ radar.
Adjusted earnings before interest, tax, depreciation and amortisation, and exploration expense (EBITDAX) losses narrowed to $0.48m from $0.78m a year ago.
Its Loss after tax was down to $0.5m from $1.2m.
Net cash to the group as at 31 March stood at $47.3m, almost half the $88m it had at the end of March in 2017.
“Following our full and final exit from Mauritania on 26 January, through termination of the Chinguetti Funding Agreement, Sterling is a cleaner and simpler platform from which to grow the business,” said chairman Michael Kroupeev.
“Trial line 2D processing initiated by Sterling over the Odewayne block in Somaliland is showing encouraging signs and we will use the data to further develop our understanding of the asset potential ahead of a drilling decision.
“I look forward to updating our shareholders in the coming year as we seek to maximise our value proposition.”