Sterling Resources Announce Breagh Processing Agreement

30th Sep '10 by jonut

8 comments 4513 reads

This is intended as a new home for Repobear, where he can (and probably will) ramp away till his heart's content.:)

As posted on TMF (yesterday already!)

http://www.stockhouse.com/tools/?page=%2FFinancialTools%2Fsn...

Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is pleased to announce that agreement has been reached with the Teesside Gas Processing Plant (TGPP) for the processing and redelivery of natural gas to be produced from the Breagh gas field in the UK North Sea.

The scope of the agreement also includes the facilitation of the construction of a 10 kilometre section of onshore pipeline across Teesside and required construction work at the TGPP, a plant owned by Teesside Gas & Liquids Processing (TGLP). The agreement with TGLP was negotiated by the operator of the Breagh field, RWE Dea who hold a 70% working interest. Sterling holds the remaining 30% working interest.

SP closed at C$3.15 up 4.3% on 783k volume.

Cheers
Jonut

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repobear

30th Sep '10

jonut,

Not too much to add. I think I've said enough already:-)

I think the Cannucks will like this because it's real action and they will be more convinced that production is coming in 2012.

I would estimate that more than half of the buying last night on SLG was from the UK. I think there is a lot of substance in the rumour and having read some of her posts believe that Scotslass is involved in transporting people, kit or services around because she has a track record with a number of wells. However Encore is by far her main focus.

Whether it's 100mm bbl OIP in Cladhan, or ten, or even 20 times that, yes you heard that right, the case for investing in SLG is that Cladhan, further exploitation on Breagh and other NS assets, Romania which has huge potential, France and the Netherlands is all in for nothing Well it was up until the burst of buying from the UK based on a shallow rumour, from an unverified source, without any prior knowledge to be able to judge whether there might be substance in the story. You idiots;-)

.There again if you had attended last week's conference, or viewed it on the internet, DYOR you might have concluded that there was a decent chance that the potential upside on Cladhan had gone up by a factor of two or three or more and the chance of really good news was a bit higher.

SLG have 39.9% of Cladhan

I think Breagh is now worth 300m, Blakeney 80m and they have around 100m cash. That's 480m and there are 158m shares (170m fully diluted). One of the analysts Schachter I think said he thought Breagh was worth $2.5 a share but that was before the recent placing. If you don't accept that add in a baseline of 100mm bbl for Cladhan and work off what they actually sold down from 45% to 30% on Breagh. The thrust of the argument is the same.

I like something for nothing. I like protected downside. I like huge potential upside.I like cash on the table to move through the appraisal phase. I like cashflow equivalent to a substantial part of the current share price from 2012 that is set to grow thereafter. I like good management teams with geologists of world class standing. Encore and SLG have these. That's why they between them were involved in Buzzard, Breagh, Catcher and Cladhan and a big discovery in Romania. It wasn't/isn't a coincidence and that's why there is probably a whole lot more to come.

Dans quelques jours je pense que SLG sera mon action de la décennie.

repobear;-)

JPGH

Did a quick Breagh analysis last night and some gas price sensitivity (need to be sure before i buy) and SLG share worth $cn 1.4 or so to its SP. Looking at Catcher/Cladhan at moment.
JPGH

JPGH,

31.5mm boe in Breagh in the last CPR report. Would you care to share your calculations?

Any comparables out there anybody?

I knew those Cannucks would love that Breagh news. they love cashflow those cannucks;-)

Or it could be the latest little ramp from WShak;-)

http://boards.fool.co.uk/on-a-serious-point-does-it-not-concern-you-that-12053353.aspx

repobear

Up 3.81%3.26 to 3.27.

6th Oct '10

I know that some of you have bought SLG.

WShak is trying to guage the total PI shareholding to date.

There are two polls on TMF which are linked here

http://boards.fool.co.uk/poll-shares-owned-in-slg-part-1-12058220.aspx

and here

http://boards.fool.co.uk/poll-shares-owned-in-slg-part-2-12058221.aspx

For those who you who have ventured across to mon action de la décennie.

repo

2nd Dec '10

Well this one isn't exactly flavour of the month around here and there has been off board speculation that my brain is wired wrongly;-) No matter this little company raised C$80mn and there was quite some interest so I am told.

http://boards.fool.co.uk/canadian-company-press-releases-slg-2010-12-02-12112038.aspx

The share price is above where it closed yesterday before the news was announced despite the 11% discount on the placing.

Liquidity isn't too bad either.

There was a presentation yesterday which highlighted the drilling programme.

http://www.wsw.com/webcast/canaccord3/slg.cn/

repobear

Betasurfer

Keep it up the good work, Repo! There are those of us that are intrigued by this story and welcome the updates.

thegreatgeraldo

Sterling have a an updated pres on their website, probably the one they used at Canaccord-G this week? Slides 8-10 cover Cladhan & imvh, show the scope of the potential upside (note the wells drilled to date only explore a small corner of the structure , 210/29a-4, 4z.4y

http://www.sterling-resources.com/docs/2010_Ops_Up.pdf

ohisay

6m shares traded today - quite a show of confidence .Some of those were mine at 334c.

Repo - There has been off board speculation that my brain is wired wrongly.

This is true but It looks as if you have many supporters.

(I'm the handsome one on the right.)

Sterling Resources Announce Breagh Processing Agreement

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Jonut

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