Recapitalization Overview and Corporate Update 15 March 2016
The need for a refinancing Sterling has been exploring a range of options to either refinance the business with third party debt (possibly combined with equity or equity-linked finance), sell all or part of Breagh, sell the UK…
Simplified key steps in the proposed recapitalization A Rights Offering will be launched for an amount equal to the difference between (i) SRUKs bond liabilities at the time of completion (expected to be ca. USD213m) and (ii)…
Timetable The Bond Trustee has hitherto granted various waivers and amendments in relation to these obligations to avoid any event of default under the terms of the Bond Agreement Discussions have taken place between the Parent,…
Before and after (assuming zero take-up of rights by existing shareholders) Simplified structure immediately Simplified structure after prior to completion completion of recapitalization Shareholders Bondholders Shareholders…
Remaining Bonds simplified key terms US40 million principal amount (unless increased as a result of an exchange rate movement), with no associated accrued and unpaid redemption premium, amendment fees and interest). No redemption…
Super Senior Credit Facility simplified key terms Two tranches each of USD 20m; Tranche A used first and Tranche B if required; revolving basis, multi- currency 2 or 3 year maturity (3 years subject to satisfying extension…
Overview of Sterling Resources E&P independent listed on TSX-V (Toronto, ticker SLG) Market cap of C9m (11 March 2016, at C0.02/share, 441.6m shares in issue) Net debt of US196m(1) (29 Feb 2016) 3 areas of operations: UK, the…
Breagh: field summary Participants Sterling (30%), Ineos (70%, Op.) Material North Sea gas producer Field 2P Reserves(1) 452 Bcf sales gas, 1.7 MM bbls condensate Scale 1.1 Tcf full field gas-in-place (P50)(1) Net 2P Reserves(1) 136…
Breagh: production performance 2015-16 Plant shutdown for baseline inspection Steady state operations 2015 average production of 102 MMscf/d sales gas (full field) 2015 uptime 98% (excluding planned shutdown) 2016 forecast:…
Breagh: future plans Application of 3D seismic interpretation New 3D acquired in 2014. Initial PSDM volumes received October 2015 Re-mapping in progress (completion expected mid 2016) Key to finalizing locations (A09 and A10),…
Breagh: current technical case and capex Sterling has updated its 2P production and capital expenditure (capex) profile since the RPS Mid-2015 Breagh Report, to reflect cash timing of expenditures, revised well and compression costs,…
Breagh: decommissioning costs and provisioning Sterlings current estimate of decommissioning costs for the Breagh Phase 1 facilities (assuming wells A9 and A10 drilled) is 38 million (Sterling 30% share) in 2015 real terms, based on a…
Cladhan: Field summary Participants Sterling 2%, TAQA (64.5%, op.), MOL (33.5%) 2P Reserves(1) 14.9 MMbbls field, 0.447 MMbbls net (post carry) First Production December 2015 Subsea development via Tern platform (operated by…
Netherlands: probable oil development Sterling is operator of Jurassic and Early Cretaceous horizons in licences F17a, F18 (Sterling 35%) Net 2C Resources in F17a/18 of 12 MMbbls(1), in three oil discoveries Appraisal activity by…
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