Sterling Resources Ltd. (CVE:SLG) (PINK:SGURF) stock tumbled down as the company announced the drilling results weren’t up to expectations.
SLG stock collapsed on Wednesday as the price gapped down nearly 28% after partly disappointing drilling results were announced. The price attempted to recover yesterday, but the selling pressure continued throughout the day.
Trading volume was very strong following the announcement. It topped 4 million, compared to the average 621 thousand and some of that activity poured into Thursday’s trading as well. 2.1 million shares changed hands yesterday, confirming that the commotion caused by the press release is still ongoing.
On Wednesday, the company announced the completion of the drilling of one well in the United Kingdom North Sea. It was the third well drilled on a four-well campaign dedicated to check the extent of the Cladhan reservoir. Streling Resources hit wet sands while drilling and confirmed that the central channel is separated from the main reservoir in the area.
The CEO John Rapach tried to sooth the situation by saying this discovery will aid in better understanding the reservoir distribution, but that didn’t seem to affect the selling shareholders.
The last appraisal well is planned to be drilled in the southern section of the northern channel area.
