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

and you are?

Sterling Energy PLC
18 March 2005



Sterling Energy plc ('Sterling' or the 'Company')

West Africa Deal to Fund Study into Major Heavy Oil Deposit



Sterling has signed a farm-out deal with Markmore Energy (L) Ltd, a private oil
and gas company wholly owned by investor Tan Sri Halim Saad for the Dome Flore
offshore petroleum license held by Sterling.


The Dome Flore block is located in West Africa, offshore Senegal and Guinea
Bissau, in the area administered by the Agence de Gestion et de Cooperation
(AGC). The deal is subject to the final approval of the High Authority of AGC.
The Dome Flore block contains an estimated 800 million barrels of heavy oil in
place. Thirteen wells have been drilled into the block, and several have
penetrated 10-13 API heavy oil deposits, with thickness of 20-35 metres, in
shallow Oligocene reservoirs. Additionally, two wells have found much smaller
deposits of 30-35 API light oil. The discoveries lie in 50 metres of water,
approximately 70 km offshore.


Under the terms of the deal with Sterling, Markmore will take over the
operatorship of the licence and pay for a feasibility study into a major heavy
oil project, a study of new exploration prospects, the cost of a possible
exploration well with an additional bonus on exploration success, and a small
initial signature payment. After the deal is completed, Markmore will own 55%
of the block, Sterling 30% and l'Entreprise AGC (a government-owned company)
will own 15%.


Markmore Energy will employ expert Canadian engineering firms to conduct a
year-long engineering study to assess heavy oil development economics and
options at Dome Flore. In particular, the study will examine the possible
application of Canadian steam assisted gravity drainage (SAGD) technology in the
offshore reservoir. Additionally, Markmore will study new exploration prospects
in the block in 2005, and could drill a new exploration well in 2006 / 2007.


SAGD technology has achieved recovery rates above 40% in heavy oil operations in
Canadian tar sands. The technology uses two parallel horizontal wells. Steam
is injected in the top well, where it rises and warms the heavy oil, allowing it
to flow. The bottom well drains the condensed steam and hot oil, where it is
pumped to the surface and separated.


Sterling Chief Executive Harry Wilson said: 'This is an excellent deal for
Sterling, with a partner that has a strong interest in maximising the potential
of this promising acreage. Moreover, without incurring any costs, we benefit
from a residual 30% interest in the significant potential of this permit.'


Mr Wilson added: 'With current oil prices and recent advances in technology,
heavy oil deposits such as in Dome Flore start to look very interesting
commercially.'


The initial Dome Flore permit period expires next January but can be extended
for two years subject to commitment to drill an exploration well.


Markmore Energy (L) Ltd is a private oil and gas company wholly owned by
Malaysian investor Tan Sri Halim Saad. Halim's other business interests include
Metro Ikram Sdn. Bhd., a wholly owned investment company, whose activities
include a current project for construction of 70,000 units and 100,000 units of
affordable housing in Senegal and Ghana, respectively. He also has a substantial
share in Seloga Holdings Bhd, a company listed on Bursa Malaysia, which is
building an asphalt manufacturing plant in Malaysia.






For further information contact:

Harry Wilson, Chief Executive, Sterling Energy plc: 01582 462 121
Allan Piper, First City Financial Public Relations: 020 7436 7486
07736 064 982

Henry Turcan, Evolution Securities Ltd: 020 7071 4324






This information is provided by RNS
The company news service from the London Stock Exchange

Another well hedged deal, with a 2006/7 result.

That'll be the time foir this Company.

Seems a good deal to me. We did have an 85% interest in this previously and in order to develop it, we would have to pay the costs. So now we have a reduced interest of 30% but have to bear no costs for developing the area. Another free carry situation. Considering the area seems to contain more heavy than light oil, I think it's a good deal for us. Bringing in experts who know best how to extract heavy oil seems logical to me.

My god its almost broke even for me!

Just another .10%,and i will see profit.

I plan to buy more if it closes over 21p (intaday high).

the makings of a great oil company?? well diversified, funded and government linked. bring on 2006/7.

This old dog seems to have teeth again!!!

http://www.killikmorningnote.co.uk/

Sterling Energy in attractive farm out deal in Senegal carried interest over 30%

STERLING ENERGY Farm out

Sterling Energy, the US and West Africa oil and gas business announces a farm out deal for its Dome Flore block in offshore Senegal. The block contains an estimated 800 million barrels of heavy oil in place and under the terms of the deal, Markmore Energy will take over operator ship of the licence in return for a 55% stake. Sterling will retain 30% and the government 15%. In return for the stake, Markmore will incur the expense of a year long engineering study.



Using a standard 40% recoverable rate, it is estimated that 350 million barrels could be extracted from the site and for Sterling shareholders, should this prove successful, for no cost, it will benefit from 30% stake in the proceeds. At current oil rates, this could prove very valuable.



The stock has held steady since the 100 million placing where it backed into the Mauritanian producing interests through a government deal. This is now increasingly looking unjust and we would expect a move over the 20p level (from the current 17p) in the short term.

Cheers for the Killik post SWW. Found this:

Halim Saad buys 55% stake in Africa oil block



Malaysia's Halim Saad, the former controlling shareholder of industrial group Renong, has bought a majority stake in an African oil block from Britain's Sterling Energy Plc for an undisclosed price.

Markmore Energy (Labuan) Ltd, Halim's wholly owned oil and gas firm, purchased a 55% stake in the Dome Flore block, located in West Africa off the coasts of Senegal and Guinea Bissau, the firm said in a statement.

Sterling will retain a 30% interest while the remaining 15% is held by a firm owned by the governments of Senegal and Guinea Bissau -- Agence de Gestation et de Cooperation entre la Guinea-Bissau et la Senegale.

The block has proven petroleum reserves estimated at 800 million barrels of heavy oil, according to the statement.

"Dome Flore has long been known to hold large quantities of oil and we believe that Dome Flore is an excellent candidate for possible development... we plan further substantial investments to move towards its development," Halim said.

In January, Halim agreed to join with the government of Senegal to build 70,000 homes in the African country.

Halim also holds a 32.6% stake in Seloga Holdings Bhd, which is building a RM270 million bitumen processing plant in eastern Terengganu state. - Reuters


http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_b4dc1447-cb73c03a-1b11b790-cfad9a80

the edge...that takes me back....the best business news in Malaysia. a surprisingly professional publication.

Things appear to be building towards May then as we thought.

I've got a feeling that we may well see more deals like this over the year, which seems to me to be a good move for the company. It cuts down on spending by bringing in others to help develop the areas. Makes sense to me that a smallish copmany spread the risks and costs by bringing in partners, especially with an active drilling program coming up.

Some other areas it may happen in this year.

Phillipines, the Reed Bank, Sterling hold a 100% interest there. Gas reserves beleived to be around 0.5tcf. 3D survey planned 1Q5 so another partner could be brought in there.

Croix du Sudin in West Africa. 88% interest and the operator. Again, looking to farm out and drill probably in 2005. 1bn barrels unrisked potential.

The reserves figures I used came from one of last years brokers notes. Interesting times ahead I think.

same her. this really could be the start of something or even takover stuff?

Got to say, similar in many respects to the way Hardman have dealt over the last few years, although there, times they are a changing.

I know a song about that!

If they can get these fields drilled and come up with decent drilling results then I think they may become a takeover target. I just mentioned 2 possible scenarios where deals similar to today's may happen this year. Of course we all know that there is much more going on in other areas that I didn't mention.

SWW, you wouldn't be talking of Bob Dylan by any chance! The times they may be a changing indeed!

New website up and running, just went live today I think, MUCH better than the last one and finally gives details of the company's operations.

http://www.sterlingenergyplc.com/

Sterlings web site has been improved as promised by Harry Wilson.

Much better.

They have a heck of a lot on the books for ongoing operations, some I had forgotten, or did not know about.

http://www.sterlingenergyplc.com/

Snap

Make a wish gavfdc.................

We're rich!!

Well, we will be one day............

Takeover is always there especially with all that stuff to have a go at.

The new website is indeed a massive improvement over the last one. So much info on there regarding the areas of operation, an issue i'd mentioned to them a couple of times. I like the detail they have put on the site regarding operations.

2m T trade just gone through at 18.38