Sterling Resources* (SLG : TSX-V : $2.40), Net Change: 0.14, % Change: 6.19%, Volume: 509,610
No tarnish here. Sterling, an international oil and gas junior focused in the United Kingdom and Romania, moved up after releasing year-end results. The company is in a pre-production mode. Financial results are not as material as operational updates. The working capital surplus at the end of the year was about $73 million, slightly lower than Canaccord Adams’ estimate of $75 million. Additionally, the third and final interest instalment and principal repayment from its bridge financing was made to holders of the notes on April 20, 2010. Overall, the company’s reserves and contingent resources decreased by 30% to about 72 mmboes (proved plus probable plus best contingent estimate) as a result of the sale of a 15% interest in Breaghiand the impact of the farm-out of interests in the offshore acreage in Romania. However, Sterling has an active drilling program getting underway in the U.K. North Sea in the second quarter. The next catalysts are expected to be: 1) An exploration well at Eugenia South in the Midia Block of the Romanian Black Sea (subject to government approval); 2) Sequential drilling of the exploration wells at Airidh and Macanta of the Greater Breagh Area in Quad 42 (30% interest) starting in the latter part of this quarter; 3) A well on the Grian prospect in Quad 48 in order to evaluate the Rotliegendes prospect. The well is being drilled in order to secure the prospect obtained in the 24th Round Licensing process and Sterling will be operator. At the moment Sterling has 57% interest in this prospect, but is considering farming down some interest to mitigate financial risk; 4) A follow-up well (39.9% interest) at Cladhan in order to gauge the potential upside of the existing discovery. This well is expected to spud in May. This is a light oil discovery where the geological potential is broadly in the range of 300 million to 1 billion barrels of oil in place as measured on an unrisked basis. A successful outcome is therefore a material event for Sterling Resources; 5) Final interpretation of the results from testing of the Craiova wells; and 6) Breagh project financing terms and regulatory approval to develop Breagh later this quarter.n , Net Change: 0.14, % Change: 6.19%, Volume: 509,610
No tarnish here. Sterling, an international oil and gas junior focused in the United Kingdom and Romania, moved up after releasing year-end results. The company is in a pre-production mode. Financial results are not as material as operational updates. The working capital surplus at the end of the year was about $73 million, slightly lower than Canaccord Adams’ estimate of $75 million. Additionally, the third and final interest instalment and principal repayment from its bridge financing was made to holders of the notes on April 20, 2010. Overall, the company’s reserves and contingent resources decreased by 30% to about 72 mmboes (proved plus probable plus best contingent estimate) as a result of the sale of a 15% interest in Breaghiand the impact of the farm-out of interests in the offshore acreage in Romania. However, Sterling has an active drilling program getting underway in the U.K. North Sea in the second quarter. The next catalysts are expected to be: 1) An exploration well at Eugenia South in the Midia Block of the Romanian Black Sea (subject to government approval); 2) Sequential drilling of the exploration wells at Airidh and Macanta of the Greater Breagh Area in Quad 42 (30% interest) starting in the latter part of this quarter; 3) A well on the Grian prospect in Quad 48 in order to evaluate the Rotliegendes prospect. The well is being drilled in order to secure the prospect obtained in the 24th Round Licensing process and Sterling will be operator. At the moment Sterling has 57% interest in this prospect, but is considering farming down some interest to mitigate financial risk; 4) A follow-up well (39.9% interest) at Cladhan in order to gauge the potential upside of the existing discovery. This well is expected to spud in May. This is a light oil discovery where the geological potential is broadly in the range of 300 million to 1 billion barrels of oil in place as measured on an unrisked basis. A successful outcome is therefore a material event for Sterling Resources; 5) Final interpretation of the results from testing of the Craiova wells; and 6) Breagh project financing terms and regulatory approval to develop Breagh later this quarter.n

Sterling Resources (SLG : TSX-V : $2.17), Net Change: 0.07, % Change: 3.33%, Volume: 287,575
Big year underway. Canaccord Genuity Oil & Gas Analyst Richard Wyman highlighted Friday that Sterling has a very active drilling program underway in the U.K. sector of the North Sea. Additionally, the proposed development of the Breagh natural gas project is expected to receive regulatory approval in the next couple of months along with project financing terms. The company is funded for the drilling program this year, but depending on the size of project financing the company may need additional equity funding to cover residual spending until first cash flow. The Kirkleatham project is expected to start up in the second half of this year, which will provide Sterling with its first production and cash flow. Wyman highlights that Sterling currently trades at just ~50% of his estimate of contingent asset value.