Sterling Energy gets a waiver, share price up

21 Apr 2009

Sterling Energy, the independent UK oil and gas explorer, has reached a waiver agreement with its banks over its $250m reserve-based facility. The waiver, which expires in mid-August and affects the borrower's repayment schedule, was forced on Sterling after its latest borrowing base review left it with a debt gap of $27m, which it otherwise would have had to repay.

Equity investors were encouraged by the announcement, and the Aim-listed borrower’s shares were trading at 2.08p this afternoon, up 7.8% on the day.

The amount of the loan that Sterling can drawn is determined bi-annually and is dependent on its cashflow from assets in the US and Mauritania. Sterling’s ...

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