anyone got any ideas about the block trades that went through today?

website: http://www.sterlingenergyplc.com/



weather: www.nhc.noaa.gov/refresh/graphics_at4+shtml/084938.shtml?50wind120

How do we find out what the placing will be.

MS

Proptrade morning , its been a up /down sort of morning,no position as of yet 15 is the magic number for me,but will be calling in from day to day,good luck all.

Prop, agreed. Investors need to look at the long term and to where the company is going to. As I said earlier, for those of us in this for the long haul, I do believe this is a good deal.

Perhaps what spooked some earlier was not knowing the price of the placing, or maybe not the deal they had been hoping for.

cheers...my guess is that the placement will be a bookbuild just because of the size versus mkt cap. i think 15 to 16 is around the level it will settle at from experience. there must already be an indication of interest from an anchor because you don't undertake something like this unless u have checked the mkt quietly beforehand.

Thanks for that Prop. I wouldn't have thought that the City would have got in on this deal unless they thought it would be a good one. I will be adding some more once everything settles down a bit.

Me too.

MS

Hi all, I have been lurking on this thread for a while I am in at 18.5 and spotted this link posted on advfn suggesting a figure of 17p

http://www.guardian.co.uk/business/story/0,3604,1336614,00.html

Do you suppose we will get a take up offer or will these go straight to the markets? Might have known the price would fall in the short term....it always does as soon as I top up again! Long term I'm sure these will rocket!

thx for the link. the guardian probably has it right, they would have heard it from brokers involved. if that is the case then happy happy days. put this is perspective, we may be diluted but the mkt is obviously in agreement with the continuing fortunes of SEY and their management.

Some interesting observations on advfn. Have a look.

MS

Sandrew, we won't get to see any of the new shares. It says in the RNS that the 97m will be in a placing to the institutions. Would have been nice to get some though, but would have taken a lot of time I think to set up for us to get them. I remember Kenmare did something similar early this year for retail investors, buy 4 new shares and get 1 warrant free. But of the top of my head it took quite a few months to sort out.

Shame....usually a good chance for a bargain!

If the news in the Guardian about the placing price being 17p is correct, I wonder if we will actaully get anywhere near that with a view to buying more? Any thoughts anyone.

sagem
The MM's love people like you

not really...obviously this has been well researched otherwise we would be deeply discounted by now. expect the price to move closer to 17 (and maybe slightly below) by Nov 20th. only because of the overhang issue. the reason why we are holding steady now is to reflect the potential premium concerning the drill programme. good news. there is a chance we could even see 20 soon and the issue be hugely oversubscribed....

there is a chance we could even see 20 soon and the issue be hugely oversubscribed....

Proptrade - won't the amount and the price already have been agreed with the purchasing institutions? How could it be oversubscribed?

not sure if it is a bookbuild or set price...of course if 17 in the fixed level then it will be first come first served but what will be key is how quickly the stock is placed. if there is/was appetite for more then these will bound through 20.

proptrade - and wouldn't it be in the co's interest to place as few shares as possible at the highest price? It would certainly be in my interest!

Re How good is the deal?

It seems to me we should be taking our lead from the company and the investors putting in the 97m. They have access to all the facts and presumably the inside track on the latest drilling data from Mauritania.
Our back of the envelope attempts to calculate the value of the deal and in some cases to suggest its not really good, can't help but be wide of the mark.

Got this from an other BB.

To me then there is no doubt that this must be a fantastic deal for SEY with 1 but. And its quite a big but and its the political risk.
We have already seen recently what happened to the Hardman share price when the Mauritanean government had to deal with a group plotting a coup (it fell from about 93p to about 77p). On the positive side the government seems to be very successful at putting down opposition. And of course much of Africa can be regarded as having unpopular governments or governments with a rebel group. So on balance I will hold.

From a personal point of view one further complication is that I also have a considerable holding in Hardman!
With SEY now mainly a play on Mauritania instead of a balance betwen the Gulf Mauritania and other countries, I have too much invested in one play. I think I will reduce Hardman though not Sey. The opportunity may come as soon as next week with the Capitaine exploration well drilling currently in block B.

MS

nice post, thx.

chinapete - a agree of course but any chunky investor needs a disc, however small. if there is great demand then that disc will be minimal