San Lorenzo Gold Corp V.SLG.RT

ALL THE BULLISH SIGNS ARE THERE

[Banffstocker]

Cannacord raised the Target price over 2 dollars!!!

New and stronger partners coming for Breagh? Shares of North Sea oil and gas explorer Sterling Resources surged yesterday.

Last week, following the closing of the recent bought-deal financing (US$11.2 million in gross proceeds), Canaccord Adams raised its target price, based on a revised estimate of contingent asset value that includes updated reserves and resources announced with year end results. The funds associated with the recent bought-deal provide interim financing until the funds in the amount of US$12 million (expected from the joint venture arrangement with Melrose for the development of the Doina complex offshore Romania) are received around the beginning of the third quarter. Prior to the close of the bought-deal financing, we estimate current working capital to have been close to zero so the need for financing was apparent. Sterling experienced strong drilling results in 2008 in both the U.K. and Romania. The company was also able to bring in Melrose and Trans Atlantic as new partners to help develop the offshore natural gas assets at the Doina complex and explore for shallow natural gas prospects at the Craiova Block onshore Romania. In the next month, it is expected that the process to secure new partners to advance the development of Breagh and neighbouring prospects will be announced. Some of the existing partners at Breagh are expected to be selling their interests to stronger partners capable of moving the natural gas projects forward.

Whether Sterling sells some interest or farms out some interest remains to be seen. The Melrose farm-out on the offshore blocks in Romania is expected to conclude around the end of the second quarter once conditions precedent related to the Romanian government approval of the Melrose joint venture

Banffstocker