New Sterling Energy (LSE:SEY) CEO Tony Hawkins spoke to London South East and spelled out the changes happening at #SEY, where two long term institutional holders have chosen to sell their combined 45% holding on to a wider group of institutional investors, and two senior executives formerly from Tullow Oil (LSE:TLW) join the board as Executive Directors.
"Its probably useful to say that Sterling Energy has always been an oil and gas explorer and developer and is quite well versed in West Africa, the Middle East and North Africa, so our renewed focus on West Africa is a continuation of that strategy really. The important thing is that we have a new executive team coming on board to help us grow the portfolio that we have and build on the legacy of the past. We have refreshed the board with the addition of two Executive Directors, the former CEO and EVP of Tullow respectively."
Two long term institutional holders, Waterford with 29% and Mistyvale with almost 16% have agreed to sell on their shareholdings. "They came into Sterling in 2009" said Tony, "We worked on several exciting joint ventures with them and we are nothing but grateful for their support over the years. They have now decided to sell to a group of institutional investors which broadens our shareholder base, we have retained the cash which we have in the company [reserves of almost $43M in November] and we move onto the next phase."
"The 45% share stake has been split up across 20 or 25 different institutions which invest in a wide variety of oil and gas projects, and we would look to enlarge our retail holding over time." he explained.
"Our positive cash position means we have roughly $40M to spend on a new venture to grow the business. My pitch to retail investors is: we are a well funded, well capitalised well managed oil and gas company looking for growth. If that's the stock you are looking for, if that's the risk appetite that you have, I'd encourage you to look at our stock very closely, look at our management team, our assets and ambitions, and please follow us."