So just what’s going on over in Kurdistan at Sterling’s’ Sangaw1 drill? That’s the question that investors have been asking. The ill-fated drill has encountered more problems and delays then investors care to remember.
There’s been several hundred emails asking for an update/opinion. So here’s one!
There are rumours floating around that hydrocarbon shows have been encountered however I would urge extreme caution. The sp is reacting to this but the facts are thus.
The chances of Sterling hitting oil at Sangaw are 1 in 10 although the company would have you believe that the recent gas shows actually increase the chance of finding oil. No they don’t. What they do increase is the chance of hitting more gas! It’s becoming obvious to all involved that there is some thing down there in the Jurassic/ Triassic sections of the drill but to all intents and purposes the chances of it being oil are low, there’s more chance of a water find here then there is oil although 1 in 10’s do occasionally come in I would tend to stay well away from the stock, past Sterling history is littered with cock-ups. It’s looking increasingly like a gas deposit from where I’m sitting and this is reflected in the current market price of the stock. I could be wrong and hope I am.
Let’s hope for the sake of all those long-suffering Sterling Holders that the water metamorphoses in to oil. The whisper is It has happened before although that was water to wine! Coin-Flip at best!