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

Prop,

ROFLMAO!


GAv,

Yes "close to pipeleines and production infrastructure" was a nice add on.

is that roll on floor laugh my arse off?

yes, great joke!


ps

The 'L' = "Laughing"

Lol! Good joke Prop. Looks as if your mob may pip the Mancs to 2nd place at this rate.

Andy,

Surrounded by proven oil fields - nice.
Close to pipeleines and production infrastructure - nice.

Hopefully this area will be of great profitability to SEY and others working in that area.

The Pan Ocean news out on another Canadian newswire.
CNW Telbec.


http://www.cnw.ca/fr/releases/archive/April2005/20/c7826.html

Quiet here today!

Nice little tick up, let's hope we can hold until the bell.

Andy, seems to be a bit of a quiet day for me anyway, apart from SIA dropping this afternoon!

very quiet but i will take a quarter point rise every day!

Wht is it about SEY that can't get started with all the positive vibes about the management and risk/capital free deals they strike one after the other? Is there something we can't see for looking?

SD

Sterling Energy PLC
25 April 2005



25 APRIL 2005



STERLING ENERGY PLC

SALE OF PHILIPPINES GAS ASSETS TO JOINT VENTURE


Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration
and production company, today announces the sale of its GSEC 101 license to
Forum Energy Plc ('Forum Energy'), in return for an equity interest of 23.0% in
Forum Energy.


Forum Energy is a joint venture company specially created by Sterling Energy and
Forum Energy Corporation, a NASD (OTCBB) listed energy group, to amalgamate and
manage the energy assets of both companies in the Philippines region. This is
subject to approval by the shareholders of FEC of which over 80% have already
undertaken to vote in favour at the EGM to be held on 18 May 2005. Mr Harry
Wilson, Chief Executive of Sterling Energy and Mr Graeme Thomson, Finance
Director of Sterling Energy, have been appointed non-executive directors of
Forum Energy.


The GSEC 101 license was acquired by Sterling Energy in 2002 and lies offshore
Palawan in the South China Sea, Philippines, an area known as Reed Bank. The
license contains the Sampaguita gas discovery which has flowed gas during test
and over which it is planned to shoot a seismic survey shortly. In addition,
Forum Energy will have interests in oil & gas assets in the Northern Cebu Island
and coal operating contracts in Central and South Cebu Island. A pre-IPO
funding of 3.35 million has also been conditionally completed valuing the
Company at 17.4 million. On this basis, Sterling's equity holding in Forum
will be valued at 4 million.


It is intended that Forum Energy will seek admission to the Alternative
Investment Market, operated by the London Stock Exchange, later in 2005.


Following the disposal, Sterling Energy will be focused on its core areas, the
Gulf of Mexico and Africa.


Harry Wilson, Chief Executive of Sterling Energy Plc, said:


'The disposal of Reed Bank will allow Sterling to focus its resources on its
core activities in the Gulf of Mexico and Africa, while retaining exposure to
the upside potential of a more balanced Philippine energy asset portfolio which
has a great deal of upside.'


'Sterling's exploration effort is concentrated on its African assets where an
active drilling programme is ongoing. In particular, it has interests in wells
in Mauritania, Gabon and Guinea Bissau at virtually no cost to itself, and a
range of other exploration/appraisal opportunities. Sterling is also intent on
substantially increasing production and cashflow in the Gulf of Mexico.'

reads ok to me...

SWW, Prop,

Personally I would have preferred a royalty arrangement, rather than a stake in another company, but HW going onto the Forum board gives a degree of confidence I suppose.


And if Forum list on AIM, one would suppose that their value may increase, thus increasing the value of SEY's stake.

it seems Andy, that you had warmed to the idea as you were typing your post!

these guys arew focusing on the big stuff...

seems good to me.

Looks a bit like a Westmount deal.

Stakes in everything, no risk in drilling, plus Forum are producers of gas.

So, money made every day.

Would it be right to say that all they have done is to offload risk [ cost of expo, etc: ] for a slice of forum.

aldwickk

It seems that way.

The Reed Bank needs specialist equipment and the use of new technology to extract the gas, hitherto described as "stranded".

Forum are already producers, so imo, the risk to the 4 is although there, is limited. Forum have a numbre of assets nearby relatively, and obviously have the expertise in development of new fields.

It does take away the risk from Sterling, so that to me is good news.

I must say have always been a little concerned about the ownership and development of this asset, so I am pleased someone else now has it.

SWW, i have the same read on the situation.

feels like thinks may start to be warming up here...

By the way, it has not affected the sp, and I did not expect it too.

As with WMT, when the Forum sp moves up or down, it will have a knock on the Sterling SP.

Itwill be seen for what it is at present, i.e. an assets swap.

This seems clever management to me --but when do we expect to see the sp reflecting the prospects it's been dull lately and the recipes will start creeping back. I'm off for lunch!!

I'm quite happy with the deal. Forum have the experience it seems from operating in that area so let them get on with it. A decent deal that adds to the overall picture at SEY.

Killik's take on this mornings news:

Sterling Energy Joint Venture



Sterling Energy has injected its GSEC 101 license (lying offshore Philippines) into a new company called Forum Energy in which it will take a 23% stake. Forum has been created to house various Philippines interests from Sterling and Forum Energy Corporation, a NASDAQ listed company, and the UK business will now seek a listing on AIM. Two directors of Sterling Energy will join the board in a non-executive capacity.



The GSEC 101 license has been in the Sterling portfolio since 2002 and has often been overlooked given the success the group has had in its West African exploration portfolio. However, potentially, it could be very exciting although little value can be credited at this early stage. Sterlings stake in Forum is valued at the pre-IPO stage at 4 million. The pooling of resources with Forum could well allow the economics of the site (hampered by its stranded location) to be improved and the potential upside is high. This looks an innovative route to extracting value from a license which was in the books of Sterling for very little.