announcement today from sibir on website + oilbarrel.com re agreement on mogc percentage share.but at what cost???

the way i understand it we are being given the chance to buy AGAIN up to 45% share in the company that we previously had 45% of

its not at all clear IMO as cameron is flagging it as a very good result after the negotiations........how and why????

also as i see it new shares in SBE will be issued, no mention of replacing existing so assume it will simply dilute our existing % of the whole

what DOES confuse me is tthat cameron and co. always said that the russian bit was worth some 20% of Sibir now after the fan has been on for a while and the proverbial whatnot has landed it seems that it represents much much more.

on the other hand there have been plenty of doom merchants saying that this was the end of SBE
since it now appears that it will not be perhaps we should be grateful for only being partly shafted......small mercies???

also statement suggested trading may resume late july!
or did i misread
rggds
keep fingers crossed

Regardless of what way they do shares I was under the opinion the result would be the value of previous holdings by about 20% (maybe a bit more due to lack of confidence etc.) - is this not the case?

Well its a comfort to have someone agree with me

frankly getting stitched up by Abramovich and 'only' losing 25% can probably be viewed as a 'good result'

i am much more concerned at the competence of our managers who have singularly failed to spot this coming, and having failed are now suggesting that they have done well!!!! in getting the deal they 'suggest' that they have.

i'm in large at 14p (large for me) (100,000) and will be studying the small print of the final deal when available
before deciding to retain of otherwise

almost of more concern/interest is/will be the action/reaction of the Russian government baring in mind future potential good 'investor relations'

not heard much about that so far!
rgds to all

Results are out - just reading now.

Highlights:
* Confident in legal position over dilution of stake in sibneft-Yugra.
* Positive statements of support from Central Fuel company & Tchigirinski (major shareholder).
* Good progress on West Slaym.
* Oil production expected to commence late 2005 at Salym with possible acceleration.
* Valuation complete - finalised agreement to substitute assets of sibir
for stake in Sibneft-Yugra expected end July.
* Confident of securing financial backing for further investment
in Salym (further investment expected to be $220m).
* Expect to emerge from current 'unpleasant experience' in stronger state.
* Material announcements expected over next few weeks.
* Resumption of trading in August.
* Production in 2003 1,826,189bbls (Magma 1,657,411bbls)
* Gross Profit 5,626,000
* Net loss 13m
* Loss per share .81p

Overall more positive now than when reading the doom and gloom on BBs recently.
I remain optimistic!!!

As I understand it.......the Sibneft-Yugra write down as included in the 2003 results just released.....although we only found out about it in 2004....errrrrrr..mmmmm....but they know it happened in 2003...

Rumblefish

Found this whilst looking at some news reports.
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/06-30-2004/0002202759&EDATE=