Pareto Oil & Offshore Conference Corporate presentation September 2014
Overview of Sterling Resources E&P independent listed on TSXV (Toronto, ticker SLG) Market cap of C166m (Sep 5, 2014) Pro forma net debt of US178m (Jun 30, 2014 adjusted for equity raise July 2014) 4 areas of operations: UK,…
Material Reserves, Contingent & Prospective Resources NET RESERVES & WORKING ASSET RESOURCES DESCRIPTION INTEREST MMboe (1)(2) Significant exploration and appraisal activity over CURRENT PRODUCTION / DEVELOPMENT 2P (1) next few…
Production growing and diversifying over next 5 years Sterlings production should increase materially in coming years: Cladhan expected onstream Q2 2015 Breagh Phase 2 expected onstream Q3 2017 Crosgan expected onstream…
Vision and strategy VISION: BECOME A LEADING EUROPEFOCUSED E&P COMPANY WITH DIVERSIFIED CASH FLOW, DELIVERING SUPERIOR RETURNS TO SHAREHOLDERS Strengthen balance sheet by maximising cash flow Focus on Breagh development…
Breagh: field summary Participants Sterling (30%), RWE Dea (70%, op.) Facilities completed and commissioned Field 2P Reserves(1) 596 Bcf sales gas, 2.4 MMb condensate Production stable at 120 MMscf/day Plant uptime 90% Net 2P…
Breagh: production performance 200 20.00 SC insrument replacement A07 online 180 Total Delivery Gas Energy & Volume 18.00 6+6 Forecast SC insrument fouling Cumula ve Produc on 160 16.00 Breagh Field total wet gas…
Breagh: A07 hydraulic stimulation success Gas daily flowrate (MMscf/day) 40 A01 A02 A04 A06 Stimulated A07 well A07 30 Average (A01, A02, A04, A06) 20 Mean of A01, A02, A04, A06 10 Payback = 90 days(1) 0 0…
Breagh: further potential well locations and stimulations Remaining Phase 1 development Stimulation of further wells possible (A01, A02, A04, A06) Well A08 hydraulic stimulation and perforation onstream Q3 Remaining net project…
Breagh: future plans additional upside Breagh Infield upside P50 contingent resource of 6.8 MMboe net from deeper horizon Appraisal upside Well planned on Crosgan discovery after Breagh A08 work (October 2014) 3rd party…
UK Exploration: Ossian prospect (36/30,42/2a,3a,4,& 5) (1) Industry leading play concept New Play Mature Basin 168 435 Bcf Prospective Resource(1) Carboniferous potential (1) Source: Sterling end 2013 NI 51101F1, P50 P10…
Romania: significant acreage position CONTINGENT AND PROSPECTIVE RESOURCES (1) AS OF DECEMBER, 31 2013 (RPS) Net to Sterling working interest GAS Contingent (2C) Prospective (Best) 320 Bcf 1989 Bcf OIL Contingent (2C)…
Romania: 2014 seismic acquisition completed Eugenia 100 km2 Luceafurul 580 km2 Ana/Doina 500 km2 Ioana 100 km2 Bianca 100 km2 September 2014 Corporate Presentation Page 15
Romania: AnaDoina Trend 3D seismic NE SW Clara Doina Ana Lead Gina September 2014 Corporate Presentation Page 16
Netherlands: probable oil development CONTINGENT AND PROSPECTIVE RESOURCES (1) AS OF DECEMBER, 31 2012 (RPS) Net to Sterling working interest GAS Contingent (2C) Prospective (Best) 0 Bcf 163 Bcf OIL Contingent (2C) Prospective…
Expected high level activity in portfolio 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 United Kingdom A07 stim, A08 ST & Stim 2 wells Drill A09, A10, A11 & A12 Breagh Phase 1 development Onshore…
Low valuation compared to peer group Source: average of most recent available valuations of RBC, TD Securities, First Energy and Dundee Securities; share prices as of September 7, 2014 Note: peer group defined as E&Ps with market…
Summary Fullcycle E&P company: - 2014 operating cash flow from Breagh plus option exercise proceeds expected to be US59m - Significant UK tax losses with no tax payable until 2023; value exceeds current market cap Minor further…
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