2010-01-07-2009-10-20-2009-12-04

Acquired onshore TX, LA Gulf Coast interests, shallow GOM, gaining 53 Bcfe proved, 21.2 MMcfe/d.

South Korean private-investment fund The Atinum Group has acquired all of the U.S. assets held by London-based Sterling Energy Plc (London AIM: SEY) for US$90 million. Sterling holds interests primarily onshore Gulf Coast in Texas and Louisiana and in the shallow waters of the Gulf of Mexico. Independent third-party and company reserve reports, effective April 2009, estimated proved reserves of 53 billion cubic feet of gas equivalent and probable reserves of 41 billion cubic feet of gas equivalent (73% gas). Average production in 2009 through the third quarter was 21.2 million cubic feet of gas equivalent per day. In addition, Sterling is entitled to a 40% share of the annual excess net production proceeds if the average realized oil price exceeds $90 per barrel or the realized gas price exceeds $9 per Mcf between 2010 and 2012. The effective date is April 1, 2009. Sterling intends to focus its interests in the Middle East and Africa. Sterling chairman Alastair Beardsall says, "This is an important step for Sterling toward focusing both technical and financial resources on existing higher-impact opportunities in Africa and the Middle East where our portfolio of exploration opportunities has the potential to deliver better returns to shareholders. In the near term, we look forward to drilling our first well in Kurdistan on our prospect at Sangaw North." In April 2008, Sterling announced its intention to sell its U.S. business following a strategic review. BMO Capital Markets was advisor to Sterling. Proceeds were used to repay all of the company's US$71.6 million in outstanding debt.