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

No position atm so I'm neither bullish nor bearish, but it looks to me as though the dilution from the Mauritania deal has killed the prospective eps growth which was being priced in last autumn. Straight out of a Jim Slater novel.

Fully diluted earnings per share, which reflects the potentially dilutive impact of options, was 0.33p per share (2003: 0.33p). This is despite the impact of the shares issued for the Fusion takeover in late 2003 which was exploration focused and the 97million placing in November 2004, the shares for which affected the computation since their issue.

Future growth is definite. The share price movements are the result of manipulation.IMO

Could anyone please update me on the past few days events! I have been away for a few days but read today that 'the bulls have lost out on recent company figures'. Many thanks.

bella - you got that from where?

Can someone find any negative point in the result?

Afternoon all,

Just read the results, am happy with them. Especially pleased with the activities in the GOM. Just noticed this part so it seems we may get an update on this by end May perhaps.

"This drilling programme is underway. The Mustang Island 749 GU No. 2 (Sterling:
100% working interest) is expected to reach target in mid-May. This well targets
5+ bcfge gross, proven undeveloped reserves in the Oligocene, Cib Haz sands at
an approximate depth of 11,500', with upside potential of 15 bcfe gross
reserves.

Sterling will shortly begin a work-over operation on the Eugene Island 268 No. 1
well. This re-completion is targeting 3+ bcfge (gross) of proven behind pipe
reserves in two sands at an approximate depth of 4,800'. Sterling has a 60% WI
in this well."

I see that Evolution have put out another buy note with a 26p target. Am trying to get my hands on a copy of it.

Also, nice little write up on Citywire, here's a snippet:

"Sterling's management has built a solid company with a good mix of production and potential upside from exploration. It has also reduced a lot of the risk involved with exploration by farming out its interests and getting partners to shoulder a lot of the financial burden of projects.

Citywire tipped Sterling at 6.75p in April 2003 and the shares have been as high as 19.6p since. Today it is down 0.25p at 16.25 and with its solid base and exciting portfolio we remain fans of the company. Sterling's management has a track record of rewarding shareholders by building companies and then selling them on and it appears well on the way to doing the same again"



http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=74208&MenuKey=News.Home

Hightech, a negative in the results? The delay of work in Cameroon is one negative that stands out.

"Sterling had planned to farm-out this licence, and had attracted a good level of
industry interest, but the award in late 2004 by Equatorial Guinea of a
partially overlapping licence to the South of Ntem has delayed this plan.
Discussions are presently being held with the government of Cameroon with a view
to resolving this territorial issue. Until that time the proposed drilling
activity is suspended."

i am hardly fretting about that small aspect of the results!

Gav,

As always, thanks for those snippets.

Neither am I, but Hightech asked about any negative point and that was one, although it is a small point. A lot of positive points in the results as I'm sure all have read.

You're welcome Andy.

bella - 11 May'05 - 12:18 - 3956 of 3964

bella - you got that from where?


Looks like we will never know.

Oh well.................(sighs)

The most important thing is that all holders who express a preference, are pleased with the results.

Not many shareholders of other small caps can say the same.

I may get a bit frustrated now and then about the movement or lack of it, in respect of the share price, but I have been here long enough now not to worry.

Production and reserves in the GOM more than doubled last year and is targetted to double again by end 05, I'm happy with that.

Also, getting 8% of Chinguetti "which lays the
foundation for a quantum leap in production and cash flow in the first quarter
of 2006" also makes me happy.

love the word quantum, especially when followed by the word leap...

Good results
Good fundamentals
Good management
Good numbers
Good prospects
Good investment

Who wants the price of something we should be buying more of to be high now?

sd

gav,

I think that the US comments are the most intriguing of the lot within the rns for the reason that they are the sole contributor to the bottom line until Q1 2006 when the Chinguetti development is scheduled to start producing. The rns said:

2005 Progress and Outlook:

US drilling and workovers programme aims to double production there by year-end

I did not take it from the above comment that the earnings contribution from the US would double this year, but rather that by the year end they would be producing twice the amount that they are producing now. In which case earnings growth could realistically be anything between 10% and 90%. I would therefore be interested to learn what the output over the course of the whole year is expected to be.

The reason for this is quite simple in so far as their PE ratio is imo quite high atm. That's fine so long as their expected growth can support the high ratio and offer an undemanding PEG. Anything over 40% and I believe that they are a buy. Anything less and I feel that they are probably either fairly- or over-priced.

It's no good just having a 1 year "flash-in-the-pan" though and I'd also be interested to learn what their growth projections from the US for 2006 and beyond are.

Btw, thanks for your comments about broadband on the ESY thread. We still haven't decided what to do.

hilary, why dont you arrange to go to the AGM and ask these questions if they bother you?

"It's no good just having a 1 year "flash-in-the-pan"................ "

You really know your stuff don't you?

I still respect you view, even if it is wrong.

Hope things are good with you and yours.

Good luck for the future.

seawallwalker,

I asked a serious question and had hoped that either you, Gav or somebody else on the thread might know the answer. If not, I can always give them a call.

As for knowing my stuff ........... Yes, you're right. I do.

Hi Hilary,

I agree with you that the comments re the GOM production are indeed very interesting. As to the statement you highlighted, I to read that as the aim for 2005 is to produce twice as much daily as they did in 04. In today's RNS, they don't seem to mention an aim of doubling earnings for 05 but of production.

The average daily production numbers are taken from today's RNS. By end 03, daily production was 5.3 mmcfge/d rising to 10.2 mmcfge/d by end 04 with a target for 05 of 20 mmcfge/d. I would argue that these figures are quite impressive, especially if they do hit the 05 target. As to total output projections for 05 and 06 are, I don't have the exact numbers.

You make an interesting point re a 1 year flash in the pan which I also agree with. It's no use having one excellent year and then not being able to build on it. However I feel that growth will continue over the next few years. A lot of the drilling planned for 04 seems to have been moved into 05 due to expanding the Houston office. Between 3 and 6 drills are planned for 05 in existing fields so I'm assuming this is why they are confident in doubling production in 05. Looking further into 06, I have no details as to what will be drilled in the US. However, as you know 06 brings Chinguetti online with revenue from the 8% share in the field plus the sliding royalty payments for other production in Mauritania. I would also expect that by 06 we should have some more activity in some of SEY's other assets.

I note that Sterling are doing a presentation at this years Oilbarrel conference in June. Perhaps by then we will have a some indication as to end 05/06 drilling plans. I guess one of the reasons why I am bullish on Sterling over the next few years is that I feel higher oil prices are here to stay, but that's a different discussion.

Cheers

Gav