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

great article in the FT as well. not in the small cap briefing but an entire column in smaller companies UK. lovely story.

Just read it online. You're right Prop, it does make good reading. This deal is going to add a massive amount of cash to our accounts once the field is up and running. Thinking more on the deal, the more I think about it, the more I like it!

This part from the Killik note stands out:

"It is anticipated that the cash flow will be sufficient to repay the financing of this deal will be a rapid tow years and increase Sterling Energys reportable group cash flow from 20 million to nearly 60 million by 2006. On less than 5x 2006 cash flow, the stock is very cheap."

Well, I'm back from my seawallwalk, and it's good to see that we are all collectively coming up with the goods on this deal.

It is quite clear any one who dropped out has made a faux pas, and good luck to them with their other investments, I hope thay are able to earn as well as us.

25p to 30p a share short term will do nicely, and did I read the placing is going to be 19p, or did I misunderstand???

Whatever, it is a great deal, with the prospects of more to come.

The optomism is ooozing from this board.

I can not free up any more cash before the off so I will have to sit on the holding I have.

SWW

I thought 17p. Like you I'm fully invested so will just have to wait for one for one of the others to show a bit more profit. But by then I'll probably have missed the boat.
Great steak meal last night. Thanks for the advice on how to cook them. All washed down with lots of champers and G&T's. Rock 'n' Rolled the night away with Elvis, Jerry Lee and the best rock & roll singer of all time Little Richard imho.

MS

Good Golly................

Sounds like you had a great evening, the pair of you.

Just gpone back an d19p is mentioned about 5 items before my last.

Speculation of course.

I am up to the hilt now and need to free some for this and others, but if i miss the boat, okay!

I note on the motley fool, some punters are not so happy.

And one on iii.

This is a share with high risk, but then hasn't it always had some?

The main risk is to the Governement of Mauritannia, but even if that changed, who believes the new, (or any), Governement can get the oil out of the ground themselves?

I don't.

I will see this one through to all of the various points along the way.

Each is a bail point, but this is not one yet.

I will study the full deal when it becomes public and make decisions based on that, not rumour and speculation.

I agree. If you want safe then stick with the FT100 utilities AWG for instance.
Pays a good dividend but so boring. It's all a risk you just have to make a judgment and go for it.
In a couple of years or so we will all be looking back at today's price and counting our blessings whilst sipping large G&T's on some beach in the Bahama's.
That's if you hang on in. Am I ramping or what!

LOL

MS

No ramping at all.

It is your opinion, and mine, plus a few others, i.e. gav and prop. (I know there are others, so sorry if I don't remember as I write).

We all think this is a value share with the potetial to make us huge amounts of cash, but we are also realists.

FTSE100 is fine, but I have not made much on those and in fact as with BB. and RTO, my assets have gone backwards, (thanks to my mate who gave me inside information that they were going to be taken over imminently, 18 months ago).

If it were not for these smaller companies, I would be deeply in the red. As it is, I have made and taken money at various points in the past, perhaps more so as I have learn't the buy in prices and sell out prices along the way. With smaller stock I buy more and make more.

Sterling is one that I have always kept from the Fusion takeoever last year.

Yes there is risk, but there is more risk of something dire when you cross the road, so I intend to make the most of the Oil Minnows.

If it goes wrong, hey, it's only money!!

My missus can keep you company at Kings Cross at a halfpenny a time, so she can keep me in the life style that I have become accustomed too!

If it goes right, she can retire early with me.

That is the long and short of it!

Found this on an other site. Might be if interest.

MS

Killick Morning Note...

STERLING ENERGY Mauritania further thoughts



We met with the board of Sterling Energy yesterday to flush out more detail on yesterdays acquisition. The bottom line for those that want to just get to the point is that the impending placing of new shares (which we intend to participate despite the tight timing) looks very attractive. Do speak to your broker for further information. Risk rating high due to the small company status.



Sterling Energy first gained exposure to the Mauritanian interest last year through the acquisition of Fusion Oil and Gas. This company benefited from a royalty agreement with Premier Oil based upon production from areas of Mauritania. As a result, Sterling energy was in a unique position technically competent in the area but not conflicted in its positioning when working with the Government of Mauritania. The government has an option to acquire a 12% stake in any field off its coast but the Chingeutti field was due to expire in late November. It cannot afford or raise finance to take its stake, nor does it necessarily have the expertise to be a partner in this venture. It needed therefore a partner that could help it finance and run effectively a state oil company. Despite intense competition, it selected Sterling Energy.



Sterling now has to move quickly. In order to provide the letter of credit, it has to raise 97 million of new equity from the markets. A placing price has not yet been set but the market price of Sterling shares at 19p indicates the market has settled on the intended price. This finance will be provided to the new company (in which Sterling is estimated to gain access to 70% of the profit oil after all costs have been recovered). To provide some indication of the field, it is thought to hold 139 million of 2P risked reserves. This could rise to an estimated 205 million. Production from this field is anticipated to begin in early 2006 and full production of around 75,000 barrels a day will be achieved quickly (the structure of the field is pretty straight forward). It is anticipated that the cash flow will be sufficient to repay the financing of this deal will be a rapid tow years and increase Sterling Energys reportable group cash flow from 20 million to nearly 60 million by 2006. On less than 5x 2006 cash flow, the stock is very cheap.



Of further significant interest is that Sterling, being seen as a strategic partner to the Government is in a very strong position to repeat this exercise when further fields come on stream. The Tiof field may come on stream in 2005/6 and its proven and probable reserve (2P) is nearly three times as great as Chinguetti! The fact that Sterling is going for an equity raise at this stage and with the associated cash flow from this new venture, it should be able to go for gearing next time around.



Given anticipated cash flow per share of 4p, this stock is capable of moving from the 15-20p region to the 25-30p region comfortably but the deal has opened the door for further significant moves to the upside. For higher risk investors, the opportunity to participate in the placing is highly attractive. Inform your broker of any interest by close of play tomorrow.

SWW

Nice one well said and put a smile on my face.

MS

Makes good reading don't it?

Had seen it before, I thought here.

The 25-30p bit is what I like to see, that is why the price is up where it is currently.

That is also why pundits are saying buy at sub 20p while you can.

What, the halfpenny a time bit??

Sorry if I've duplicated.

MS

What, the halfpenny a time bit??

My word you all talk a lot I.ve hardly got time to read the other threads!! I notice you've all lost your appetite with all the excitement. I could only stretch to 5000 so I would like the opportunity to add before they shoot up. Very happy so far in fact thinking of dumping PXC to add here.

What, the halfpenny a time bit??

LOL.

Sorry.

It's good to talk.

S**t that was BT.

Getting our appetites back today it seems.

mickey got his last night!

A hour and it's all over for the day so here we go.

Tonights menu:- Cumberland sausages with fried onions mashed swede mashed spuds and peas. I'm salavating already. The dog can have the bone back proper grub for me from now on.

MS

Pumpkin and parsnip gratin for tomorrow night. Beans on toast tonight as we are both out.

Who gets the beans on toast?

mickeyskint's dog?

I am being lazy today.

I bought a ready made steak pie from tesco earlier, which I am serving with mash made out of steamed King Edwards, (remember the sack I bought for 5?), swede, carrots and green beans.

I have a fine bottle of New World Chardonnay that I have to drink before it goes off.

That's the trouble with white wine, it has a short shelf life of around 2 to 5 years.

After that it is sold to chippy's to put into the vinny bottles.

Threshers are doing buy 2 bottles of Gallo turning leaf chardonnay for 10, plus nectar pints.

Well I bought 2 and have drunk one already today, so I may as well do the second before the wife gets in.

Don't want that going off...........

Women just do not understand!

She always moans about what I do while she is out at work, can't think why!

Been out for a while. Yep it is good to talk, we're a friendly bunch on here. Sounds like you had a good night last night Mickey. No doubt sirloin is better than a bone! Tea for me tonight is a chippy, can't be bothered cooking! The dilema there is what to have!

Agree with SWW about the small caps. IMO is easier here to make money than on the blue chips, far better growth prospects on small caps, especially with SEY! :-))) According to Shares mag, SEY is on a projected PEG of 0.2, one of the lowest in the market. Can't see that sort of growth coming from a FTSE100 company.

From the Killik's note, I take it they are just assuming the placing price is around the 19p mark since that is where we roughly are just now. What was good reading from the note was the increase in turnover, from 20m up to 60m in 2006. Thats a nice rise! Plus we will be getting that sort of income from the duration of the field.

As for Gallo, tasty! Not had that in a while. The other problem with white wine is that it goes down far too quickly! Todays menu's all sound good, but me being a lazy bones will just have to do with a chippy!

I wonder why your wife moans at you SWW... ;-) Maybe she doesn't understand the stress you must be going through!