Sterling Energy’s $117m cash appears markedly under-represented in its market cap of £39m ($62m). Against this cash the group has $30m (£19m) of commitments, a $22.7m (£14.19m) abandonment liability for the Chinguetti field in Mauritania, and a further $8m (£5m) of potential staged payments in Somaliland. Post these commitments, the stock remains at a discount to cash, with no value ascribed to the current asset portfolio, or indeed, any ‘option value&rsquo
01 Jul 2015
Company snapshot
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Company snapshot
- Published:
01 Jul 2015 - Author:
- Pages:
Sterling Energy’s $117m cash appears markedly under-represented in its market cap of £39m ($62m). Against this cash the group has $30m (£19m) of commitments, a $22.7m (£14.19m) abandonment liability for the Chinguetti field in Mauritania, and a further $8m (£5m) of potential staged payments in Somaliland. Post these commitments, the stock remains at a discount to cash, with no value ascribed to the current asset portfolio, or indeed, any ‘option value&rsquo