Union Securities UpdateFrom Verbonic on Aug 30th
https://www.union-securities.com/CMResearchFiles/1_135_Sterling08302010.pdf
The revised valuation awaits water contact info I gather.
"Results have exceeded expectations, and appear to indicate commerciality of the field. The next appraisal
drilling will be drilled downdip to detect the oil water contact.
Resource estimates of the oil place on a P50 basis, indicate 30 million contingent gross barrels and 60
million prospective barrels; or almost 36 million barrels net to Sterling. At the end of 2009, Sterling had
2P reserves of 32.5 million barrels worth $12.91/b, giving them an asset value of $3.39 per share. It is
too early to estimate what might be booked for this year at Cladhan, but obviously there should be a
meaningful addition to asset value.
We maintain our Strong Buy recommendation and target of $3.00.