CALGARY — Sterling Resources Ltd. (TSXV:SLG) a Canadian oil and gas explorer operating in Europe, says it has struck a deal with the Romanian government that will allow the company’s exploration plans in the Black Sea to go ahead.
Shares of Sterling were halted on the TSX Venture Exchange pending news from the Calgary company.
Last spring,Sterling announced it had filed a notice of default with Romania’s mineral resources agency after it did not grant licences to Sterling’s partners for the offshore oil projects on Sterling’s Midia and Pelican blocks.
The dispute could have ended up in international arbitration, but on Thursday the company said it had settled the dispute with the government.
Sterling said its partners, PetroVentures International Ltd., with 20 per cent, and Gas Plus, with 15 per cent, will get their licences.
In addition, the government has extended all of Sterling’s offshore licences to May 2014 with two further extension of three years each, after that.
The company and the Romanian mineral resources ministry now expect to finalize the deal within 10 days.
“While we must still receive the final documentation on the agreements reached, we can confirm that meetings held today in Bucharest herald a new era in our future plans in Romania,” said Mike Azancot, Sterling’s president and CEO.
“The recent amendment to the construction permit law, the granting of assignments and a resolution on our licence periods will enable Sterling to resume work activities and investments in the Romanian Black Sea.”
Sterling Resources Ltd. is a Canadian-listed international oil and gas company with operations in the United Kingdom, Romania, France and the Netherlands.
In its second quarter, Sterling reported its net loss more than doubled to $13.6 million as the company booked a writeoff of $6.8 million.
The writeoff was linked to a receivable due from a partner in an unsuccessful well drilled in the southern North Sea.