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

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.

SWW,

thanks for the tech update, and I too thought SEY would never develop this asset themselves.


Proptrade,

If you get any warmer, you'll be roasting! LOL!

Seems like the market has a nuetral view thus far.

The Forum press release today:

Press Release Source: Forum Energy Corporation


Forum to Participate in Significant Philippine Gas Asset Through Joint Venture With Sterling Energy Plc
Monday April 25, 8:33 am ET


CALGARY, Alberta, April 25 /PRNewswire-FirstCall/ -- FORUM ENERGY CORPORATION (OTC Bulletin Board: FRUEF, Frankfurt/Munich: FE8) ("Forum" or "The Company") reports the previously announced Joint Venture transaction has been completed, subject to formal shareholder approval, through the formation of a new company named "Forum Energy Plc".
The new company has been specially created by Forum Energy Corporation and Sterling Energy Plc to combine and manage the energy assets of both companies in the Philippines. Both Forum and Sterling will vend their respective Philippine assets into the new company, in return for pre-negotiated equity stakes.

Sterling will transfer to Forum Energy Plc an oil and gas license situated offshore North West Palawan known as GSEC101 (Reed Bank), located in the South China Sea, Philippines. The license contains the Sampaguita gas discovery. In a recent assessment PGS Reservoir Consultants (UK) Limited estimated the potential gas reserves of the Sampaguita field to be approximately 2.3 TCF (trillion cubic feet).

Forum Energy Corporation will transfer to the new company its 66.67% interest in Forum Exploration Inc., which includes oil and gas license SC40, onshore and offshore of the northern portion of the island of Cebu, Philippines, as well as the Central Cebu and Southern Cebu coal operating contracts (COCs).

Following the transfers, the new company will apply for admission to the Alternative Investment Market (AIM) of the London Stock Exchange. Forum Energy Plc has already received pre-IPO commitments for 3.4 million pounds sterling (c. US$6.5 million). The funds have been raised through an institutional placement brokered by Noble & Company of London & Edinburgh. The investors will acquire approximately 20% of the new company.

Following the pre-IPO placement, Forum Energy Corporation's stake in the new company will be approximately 57%, whilst Sterling will hold an approximate 23% stake. The pre-IPO placement initially values the new company at 17 million pounds sterling (c. US$32.5 million).

"We are delighted that Forum Energy Plc's pre-IPO fundraising efforts have already resulted in 3.4 million pounds sterling (c. US$6.5 million) of commitments. The transaction with Sterling Energy will provide Forum Energy Corporation with the means to fast-track development of its Philippine assets, through access to the London market along with the additional exposure to GSEC101, a natural gas prospect with world-class potential. We are also very pleased to be working with a company such as Sterling Energy, which has an excellent reputation and track-record. We are confident that this transaction will add significant value to the company," commented David Robinson, CEO.

The transaction is to be finalized on May 18th 2005 following an Extraordinary General Meeting of Forum Energy Corporation's Shareholders. Shareholders of record as at April 18th have been invited to attend the meeting. At the meeting shareholders will also be asked to approve a name change from Forum Energy Corporation to FEC Resources, Inc.


Further news will be released as appropriate.

FORUM ENERGY CORPORATION
"David R. Robinson"
President & CEO
This release contains "forward looking statements" as per Section 21E of the US Securities and Exchange Act of 1934, as amended. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Management is currently reviewing many options and there is no assurance that they will not make decisions other than those now contemplated. The Company is subject to political risks and operational risks identified in documents filed with the Securities and Exchange Commission, including changing and depressed oil prices, unsuccessful drilling results, change of government and political unrest in its main area of operations

For more information please contact David Robinson at 403-290-1676 e-mail enquiries@forumenergy.com or visit the Forum Energy website at www.forumenergy.com

Contact: David Robinson of Forum Energy Corporation, +1-403-290-1676, or enquiries@forumenergy.com.




--------------------------------------------------------------------------------
Source: Forum Energy Corporation

Thanks SWW and gavdfc for the posts and everyone else for the commentary.

I am quite intrigued by the coal assets, not to be overlooked lightly with current oil price.

Overall an intelligent way to re-focus away from an inaccessible field of operations to the main events in GoM and W. Africa whilst standing to take advantage of the upside from Phillipines. I assume Harry got a good price, although the 4m is neither here nor there to the current 240m market cap of SEY.

Basically a good move to consolidate/rationalise the company's strategy which will have long-term benefit, if not much visibly in the short-term.

SD

nice summation SD

Good post Stock Dog. Thanks to all for the posts on this board, makes the board what it is. Just had it confirmed by SEY that the date for the prelims is the 9th May.

Interesting day it will be too, gavdfc