Proactiveinvestors recommends
Additional Information
Market: TSX-V
Sector: Oil & Gas Exploration & Production
EPIC: SLG
Latest Price: 0.75  (0,00%)
52-week High: 1.50
52-week Low: 0.48
Market Cap: 223.25M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Sterling Resources
www.sterling-resources.com

Sterling Resources is a Canadian listed, European focused oil and exploration company with interests in the United Kingdom, France and Romania, both onshore and offshore.

 

Full Sterling Resources profile here
Pdf

Casimir Capital maintains target on Sterling Resources, "several options remain to bolster funding position"

22nd Nov 2012, 10:26 am by Deborah Bacal
The energy company operates primarily in the UK, Romania, the Netherlands and France. It has three key projects: Breagh, Cladhan and Ana/Doina. The energy company operates primarily in the UK, Romania, the Netherlands and France. It has three key projects: Breagh, Cladhan and Ana/Doina.

Casimir Capital maintained its $2.80 target price on Sterling Resources (CVE:SLG) Thursday, after third quarter results and cash balance were "as expected", with several options remaining to bolster the crude oil and natural gas explorer's funding position. 

The energy company operates primarily in the UK, Romania, the Netherlands and France. It has three key projects: Breagh, Cladhan and Ana/Doina. 

As of the end of the third quarter, Sterling held $27million in unrestricted cash, $20 million in cash restricted to its Breagh asset, plus $3.9 million of escrowed funds related to the Netherlands.  

With the $45 million raise cancelled last week, the company is seeking alternate funding to bridge the gap between Breagh development, available cash and the debt facility. 

Casimir analyst Ryan Galloway says that several options remain to ensure adequate funding position over the next two quarters. 

"Refinancing/renegotiation of the credit facility, which, with only $141mm (prior to claw-back) of the $168mm total line currently available to Sterling, would likely resolve the current gap if made fully available."  

Galloway notes that short term bridge or mezzanine financing also remains on the table, with other solutions including the re-evaluation of the potential sale of all or a part of Cladhan or further farm downs on the 65% interest in offshore Romania. 

Casimir estimates that Sterling now has less than $54 million in remaining costs for Breagh, Eugenia and general and administrative expenses until first gas, while total cash sources amount to $64 million. 

Galloway stood by his $2.80 price target and "strong buy" recommendation for Sterling, as he remains optimistic that alternate financing arrangements and the company's "robust asset portfolio" can support a solution. 

First production of Breagh is still anticipated between March and May of next year. 

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here