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

15 please,very soon that will do fine. Time to think of what went on today at sey,there my be a few people tonight thinking very hard about the short term..

DD,

Can't see 15p again, although you never know!

Interesting change of tone and happiness throughout the day, thought you were all going to do some wrist slashing first thing this morning, but thankfully the long term implications have now set in and we continue to have a solid core of happy long term SEY supporters. Personally, if some of my dogs become pedigrees, they are out the window and SEY, ASC and CFP will be the beneficiaries. (Sorry couldn't resist a small plug). Good luck to one and all, looking forward to topping up possibly before they become too expensive!

Regards

PTH

Well.

The end of a perfect day.

Rounded off by knowing micky has eaten today!

taken from citywire.

With the shares unchanged at 19.25p it looks like the placing price may be in the late teens anyway, so existing holders have a chance to top up in the market. If institutions and directors were to get a material discount then it would be objectionable.


Existing holders should give serious consideration to buying more. Despite Sterling's rise from 3p a share in 2002, today's deal could be a watershed. The main risk is oil prices coming off the boil and consequent markdowns in shares. You have to be steeled for this.

Happy long termer here. Just opened a bottle of white wine, nice! No thoughts of wrist slashing here!

Thinking about the Chinguetti deal, we don't have to do anything once the field is up and running from 2006. All we have to do is sit back and collect a share of the revenue stream over the life of the field. 75000bopd is expected to flow to which we get a share. A nice addition to the company accounts over the fields duration. But remember, this is only one new part of our stake in Mauritania.

Forgot to post this from UK-Analyst Stockmarket Report:

"Sterling Energy stock also took a hit on dilution concerns after the company announced its was to raise 97 million pounds by way of an institutional placing. This follows an agreement signed on Tuesday to provide a letter of credit for 130 million dollars to the Mauritanian government to enable it to exercise its right to participate in the development of the Chinguetti Field. The project looks interesting. Sterling will gain an effective interest in the oil production revenues from the Chinguetti Field, the first commercial development in Mauritania. Oil production is expected to commence in early 2006 at a gross projected rate of 75,000 bopd. The Mauritanian Government has provided written confirmation that it considers Sterling as a strategic partner for the development of its future oil and gas assets, the company said. The shares fell 0.5p to 18.75p."

Investors Chronicle comment

27 October 2004

Sterling boosts African exposure


Sterling Energy is the hidden player off the coast of Mauritania, the west African republic that's currently hot property in the oil industry. It doesnt own direct stakes in either of the two key blocks (production sharing areas A and B), but will benefit from their development courtesy of a system of royalty agreements.

The first of these was put together by Fusion Oil and Gas, which was taken over by Sterling in a close-fought hostile bid battle. Fusion had previously sold its direct holdings in PSC A and B to Premier Oil in return for a royalty agreement and milestone payments for further oil discoveries.

Now, Sterling is getting together with the government of Mauritania to give it additional exposure to the Chinguetti discovery, which will come on stream in 2006. The government has an option over 12 per cent of PSC B, within whose boundaries Chinguetti lies, which it has until 20 November to exercise. It has now decided to do so. Sterling is effectively bankrolling the exercise in return for a stake in the government's share of production. Its asking shareholders for 97m, in the form of an institutional placing, to finance the deal.

It is unusual for a private company (and a smallish one at that) to underwrite a sovereign government in this way. Whether its a good deal for shareholders or not depends on how much royalty revenue Sterling gets paid. Theres relatively little detail on this in the statement, although theres plenty on the estimated impact on net asset values.

Theres some intriguing detail too, such as the disclosure that Sterling paid a signature bonus equivalent to 8.1m. Transparency International, which monitors corruption, says there is nothing wrong with such payments per se. They are designed to provide revenue for a host government until such time as oil production actually starts. The second is that Sterling is paying Warba National Contracting a 2.1m fee for introducing the deal.

The shares are pretty flat, probably because of the size of the share issue. Sterlings market capitalisation is 154m and its issuing another 97m worth of shares.

Is it going to be a red day/or blue you decide.

Alrighty then ..... I'll go for blue!!

Who cares today I may in a year or so Dave.

Of course, the greater implication of the Mauritannia Government Options being taken up is that all participants get their share trimmed by the timely move.

That is, all but Sterling who are the gainers of this share along with the Government.

Basic, but sometimes it takes a nights sleep to work a few things out like finer points.

12% from the PSC on Chinguetti will hardly dent them of course, as they must have accounted for that portion to go anyway.

But there it is!

Well, I know someone can come in with a big sell and spoil the party but things look better from early trade, many more buys than sells.

I am with you sandrew64, I think blue!

Morning all, nice start to the day so far. Here's to a blue day hopefully. Thanks for the IC post SWW.

Welcome.

Seems we are off to a flyer.

Wonder how far it will go?

Dave, did you buy yet or are you still holding for 15p?

Still waiting sw,and looks iffey at the mo.

Personally I don't think we will hit 15p, but I may be wrong of course.

The main advice that I have seen elsewhere was a recommendation to buy in at sub 20p while you still can.

Must say I did not think the time space was this short, but I suppose if the new issue is only available to Institutions and Banks, that may explain what is happening.

Also, I suppose as the news starts to age, then perhaps the price will drop back towards 17p again, then again, maybe not!

Its just one of my options,i will see it out over the next month and hopefully be in,as of now i cant lose.

To good times ahead

Fair enough!

Such a dilema, to buy more now or wait a while to see what happens with the placing shares. Think I might wait a bit and see what happens. It's certainly a tough call! But looking to the future, a couple of pence here or there will be irelevant.

From Rigzone.com:

Sterling Energy has secured a position as a strategic partner of the Mauritanian government. It has reached a conditional agreement to share in the revenues from the government's 12% interest in the 120 million barrel Chinguetti offshore oil field.

Sterling Chief Executive, Harry Wilson said: "This represents a stunning deal for Sterling, and establishes us as a key player in Mauritania, now recognized as one of the global hotspots for oil exploration and development activity. It cements our close relationship with the Mauritanian Government going forward as we have been confirmed as a strategic partner of the Government to help it develop its additional oil and gas assets."

Chinguetti, due on stream in early 2006, and operated by Woodside, is expected initially to produce 75,000 barrels of oil per day.

Sterling is paying a $15.5 million signature bonus, and providing a letter of credit for $130 million to cover the Government's share of past costs, forward development costs and contingencies. In return, Sterling will receive income from a sliding scale share of the field's production.

Sterling is seeking to raise 97 million (US$ 175 million) to fund the deal and supplement its cash balances, through an institutional placing. A shareholders' meeting has been convened for 18 November.

Sterling is already involved in Mauritania as a result of its successful 40 million take-over last December of Fusion Oil & Gas plc. That gave Sterling production royalty interests in offshore license areas PSC A and PSC B with no future capital costs paid by Sterling.

A 20-well program is currently under way in PSC A and B, which includes development drilling on Chinguetti, appraisal of the 2003 Tiof discovery, and a five well exploration program, the first well of which resulted in the Tevet discovery last month.