Sterling Resources* (SLG : TSX-V : $1.03), Net Change: -0.26, % Change: -20.16%, Volume: 1,024,979
Probable cost and schedule overrun. Sterling Resources said Monday that it has been informed by the Breagh field operator, RWE Dea U.K. of a probable cost and schedule overrun on its Breagh development project (SLG 30% and RWE 70%). The
probable cost and schedule overrun relates to modification works being carried out at the existing Teesside Gas Processing Plant (TGPP) so that the Breagh production can be received and processed at TGPP. Sterling had previously announced that such modifications at TGPP were anticipated to be completed during the second quarter of 2012 and that first gas from Breagh was anticipated in the third quarter 2012. First gas from Breagh may now be delayed into the fourth quarter 2012. Management stated that significant efforts are ongoing to evaluate the extent of the delay to start-up and the cost overruns associated therewith and identify and implement measures to mitigate any such delay and cost overrun. If such mitigation cannot be achieved, overall development expenditure for the first phase of Breagh development could increase 4-5% over the estimate provided previously. Output from Breagh is forecast at 160 million cubic feet per day once it is fully operational. Also on Monday, Netherlands-based commodity trader Vitol Holding B.V, one of the world's top three crude oil traders, announced thatone of its wholly-owned subsidiary has acquired 300,000 common shares of Sterling Resources. As a result of this transaction,