SEY exited its US business to fund drilling in Kurdistan. The Company has completed tendering for seismic acquisition services and is ready to award a contract, subject to the approval of the Ministry of Natural Resources. The Company plans to acquire the 2D seismic data during the second and third quarter of 2012 and this may lead to the drilling of an exploration well in 2013 on the Sangaw North block.

The political situation in Madagascar following a change of Government by non-democratic methods in March 2009 is whats holding up progression. The Government of Madagascar has not been recognised by the African Union or by the United Nations. In September 2011, the political parties in Madagascar agreed a process, prepared by the Southern African Development Community, leading to elections expected by the end of 2012.

Cameroon Ntem Oil Co. Ltd (Murphy), a wholly owned subsidiary of Murphy Oil Corporation under which Murphy was assigned a 50% working interest in, and operatorship of, the Ntem concession. Sterling retains a 50% non-operated working interest. As consideration, Murphy paid to Sterling a contribution towards past costs and is committed to fully fund joint operations in relation to the current phase of exploration.

Operations within the Ntem concession area are currently suspended under the force majeure provisions of the licence owing to an overlapping maritime border claim between Cameroon and Equatorial Guinea. The Company believes that both countries are actively working to resolve this issue and that the impact of the outcome will be either neutral or positive to the Company’s position however, the possibility exists that the resolution could take longer than expected and that the outcome could have a negative effect on the Company’s position.

When force majeure is lifted, there will be 15 months remaining in the current exploration period which includes the drilling of one exploration well. Having introduced an experienced deep water operator, the Company is now well placed for this operation when it occurs.

The $110 million could be used to progress either of these blocks pending developments, the company remains profitable and as such is in a good position to wait. I see no reason for a buy out on Sterlings side and doubt unless the offering was exceptional shareholders would support it.

Shortie

I do not think SEY exited USA businesses to fund Kurdistan, as you say.
I believe that gas prices were consistently low in USA, and SEY bought into
a USA gas company, which they subsequently sold off at a big loss, and any gas that SEY did find in USA was running down at a faster than anticipated rate


I thought we were told that the work at Kurdistan was "carried" by Korean
National Petroleum at no cost to SEY.

Also SEY had a rights issue about three years ago to raise money from us shareholders, and that is mainly why SEY has $110m in their bank

SEY has been "unlucky", so why should we keep waiting even more years
for Cameroon and Madagascar and for SEY new CEO to achieve something.
Better if AFREN buys SEY out, and we make some salary and overhead savings.

.

SEY / AFR both in Madagascar, Kurdistan, Nigeria / Cameroon, all in SEY at no market value, as SEY cash in bank same as market capitalisation. Almost a gift for Afren

Very odd - no prices presently quoted ?

.

Just a robot trade....but why, doesn't seem to make sense...but what does with SEY!

.

Seems to have been such a long time since we had any release from SEY...perhaps they are to busy enhancing shareholder value to let us know what is happening to what's left of the company :-/

.

Almost 1.5 million traded so far today.

ps laughed enough for today mnamreh :-)

.

Cheers, you too.

N,

Don't be so abusive.



8-)

... _ _ _ ...

Sudden burst of shares trading within last week ???
Half yearly report is due out - probably within the next two weeks.

Perhaps some good news at long last ???
- or could it possibly be that Afren , or Shell, or other oilers are buying SEY ,
as two SEY very large license areas off shore Madagascar are not too far from
Cove offshore gas - ( Tanzania / Mocambique ).
Shell and others seem to be presently in an auction to buy Cove.

Cash in SEY bank is probably worth 33p per share at a guess -
the whole business excluding cash, is valued at about 4p per share at a guess.
Could be a fair punt at 37p, for risk takers.

Present market capitalisation at 37.50p is stated as £82.00 million
say cash in SEY bank was / is now $115 m or about £73.71 million
_____
All business excluding cash is valued at £ 8. 29 m

219 million shares - Cash is worth 33.655 p per share
Other business interests 3.785 p per share
______
37.44 p

Not much downside risk if all oil licenses fail - any comments. Am i wrong !!

About time we had some chart's and link's to company website put on the header rekirkham

$120 million in bank = £77.49 million cash in bank
Market capitalisation at 37.50p £82 million
Business excluding cash in at £ 4.51 million
Business ex cash valued at 2.06 p per share *
Business cash valued at 35.38 p per share
*( excluding tax liability )

AFREN - TAKE SEY AS A GIFT ---- Take SEY for almost nothing

SEY has $120 million in bank = £77.49 million
SEY market capitalisation at 35.5p £77.74 million
SEY business interests excluding cash £ 0.25 million


SEY share price at 35.50p represented by cash 35.25p
SEY share price value of business interests .25p
( Excluding taxation )

Almost no downside risk now to a SEY share buyer at 35.50p

and upward potential almost for nothing

A bit of life.
Any move has to be cracking....