Sterling Resources Ltd. has completed the sale of its 65 percent interest in a portion of the Midia Block in the Romanian Black Sea to ExxonMobil and OMV Petrom S.A.
Proceeds of US$29.25 million are due to be received by Sterling within seven days and are subject to Romanian profits tax at a rate of 16 percent. In the event of future exploration success on the Sale Portion, Sterling will be entitled to further proceeds of US$29.25 million upon a commercial discovery being made and an additional US$19.5 million upon first production from the Sale Portion.
“We are very pleased to see the finalization of this significant transaction,” stated Jake Ulrich , Sterling’s Chairman and Interim CEO . “The net proceeds will be used to bolster the balance sheet by providing an additional cash buffer. In addition, completion of the transaction will allow us to move ahead again with a process to sell down our equity interests in all of our Romanian licences. This process had been held up in 2013 by the delay in being able to complete the Carve-out Transaction,” added Ulrich.