Sterling Resources said today estimated costs for the first phase of its UK southern North Sea Breagh project had grown by 10% to £623million.
The Calgary-based oil and gas explorer added the rise was mainly due to modifications at a gas processing plant on Teesside and work on the onshore section of Breagh’s export pipeline.
“Sterling’s share of these additional costs amounts to approximately £17million, it said.
The firm’s share of the total remaining development cost is £87million, of which about £30million is being spent through to first gas targeted for December 2012.
Sanction of phase two work for Breagh, 30% owned by Sterling and operated by RWE Dea, is expected later this year.
Sterling also said it had appointed a financial adviser as part of its plans to sell up to all of its remaining 26.4% stake in the Cladhan field, lying 225 miles north-east of Aberdeen.
Half-year results from the company showed net losses of £9.37million, compared with a deficit of £21.93million a year earlier.
It said it incurred “significant” exploration and evaluation expense in the UK North Sea related to the four-well Cladhan drilling programme and the drilling of both the non-operated East Breagh appraisal well and Grian exploration well.