Sterling Energy PLC (SEY.L) said it has signed a binding sale agreement in respect of its USA business to a non-USA buyer. The agreed initial gross consideration is US$90 million payable on completion and further amounts may become payable depending on future oil and gas prices over the next three years.
The initial sale consideration of $90 million is fully financed, with an effective date of 1 April 2009. Completion is subject only to remaining title and environmental due diligence, which is expected to be completed in early December. The actual cash to be received will be adjusted for intra-Group cash movements since 1 April 2009.
In addition to the initial consideration, there is a three year 'upside sharing agreement', under which Sterling is entitled to a 40% share of the annual excess net production proceeds if the average realised oil price exceeds $90 per barrel and/or the realised gas price exceeds $9 per mcf in any of 2010-2012.
After adjusting for cash already received from the USA business since the effective date and the various expenses associated with the sale, including additional banking fees, Sterling expects to receive approximately $79 million in cash on completion. The Company proposes to use the proceeds to repay all of Sterling's outstanding bank debt totalling approximately US$73 million, following which the Company will be debt free. The remaining cash will be added to existing cash balances of approximately $65 million and used for working capital and investment purposes.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.