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

Madagascar Farmout
Perfect Timing I think.

Sterling Energy PLC
19 July 2005



19 July 2005



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



Madagascar farm-out to ExxonMobil



Sterling, the AIM listed (symbol: SEY) independent oil & gas exploration and
production company, announced today that it has signed a farm-out deal with
ExxonMobil for the Ambilobe and Ampasindava offshore licences in Madagascar.



Sterling was granted a 100% interest and operatorship of the two licences which
were signed in July 2004 and formally ratified in November 2004. The licences
cover approximately 20,800 sq km and 13,147 sq km, respectively of the Ambilobe
and the Majunga Basins. The total exploration licence term in each licence is 8
years and in the event of a commercial discovery a 25 year production licence
will be granted.



Under the terms of the deal with Sterling, ExxonMobil will pay for a significant
exploration work programme in return for a 70% interest in the licences. The
agreement is subject to certain milestones being achieved with the initial
ExxonMobil commitment for the first two exploration phases under the licence
covering technical studies and 2D seismic. Assuming a positive outcome of this
initial work, which could take up to a further 3 years, ExxonMobil will then
finance 3D seismic and up to two wells per licence. The transaction remains
subject to approval of the Government of Madagascar.



The Ambilobe and Ampasindava licences cover a large under-explored area offshore
Madagascar in which all of the geological elements for a working petroleum
system are believed to be present. Madagascar has seen an increase in
exploration activity - in 2004 ExxonMobil and Norsk Hydro farmed-in to Vanco's
exploration licence in the Majunga basin, adjacent to Sterling's Ampasindava
licence.



Sterling Chief Executive, Harry Wilson, said:



'The signing of this deal with a partner such as ExxonMobil, with their
extensive existing interests in Madagascar, reflects the potential of this
acreage. Sterling will benefit from its residual 30% carried interest in the
licences without the financial risks of an exploration work programme.'





For further information contact:



Sterling Energy plc (01582 462 121) Web site:
www.sterlingenergyplc.com

No one gets up in the mornings here any more.

I'm up and at my desk after a healthy bike ride to the office.

As you say perfect timing to push us through the 20p previous peak into uncharted territory - dun, duh, dah, dah, daaaah! as they say in Star Trek!

I take it this was the reason why the Interims were held up?

Last year they appeared on the 30th June according to Company Reports here.

Looking at the chart there is an interesting extended formation worthy of note, I think.

Taking the double bottoms of Dec and May with the double top of April, these three micro patterns, taken together, form a larger and very strong double bottom at 14.5p with an intervening peak at 18.75p - a difference of 4.25p. Having broken north of the middle peak, one may expect the SP to rise by 4.25p to 23p in relatively short order (today? - certainly pre interims). See Proptrades post 4567 where he suggests 22-23p. I agree.

SWW - I'm not sure you are right about interims - finals appear in May the last two years and interims appeared in September last year, looking back at the RNS.

sd

great news and what a great major to tie up with...

some real momentum building here. this could curry favour (felt like saying it) with the US guys even more now. sell side will comment because of Exxon and just takes the name of SEY to new places and punters.

yet again, the managers are proving themselves.

prop,

Totally agree, another good deal for SEY, Harry and the team have done well again IMO.

I would hope 20p will become support rather than resistance now.

exactly. a bit more (fully funded) diversification to what is turning into an excellent international portfolio.

I am told that EVO have upgraded their projected sp to 33p.

Yet to confirm.

stockie, I think you asre right and Money am is wrong about the dates for interims and finals.

I'll stay quiet for a while and ponder.....................

To heck with selling in 2006 Q1, this has mileage to go for the next 5 years before think of it now.

ftse 100 constituant in 5 years (forget the quid by xmas!)

Morning all,

Not been around much hence no posts from myself, so thanks for all the posts for me to read. It's summer and has been too hot just sitting in front of the pc all day! Although it's grey and windy here today. Good to see the recent rise continue past the old high as we enter new territory, I just hope we can hold here. Excellent news this morning with the Exxon farm out, although not getting too excited as any activity will be a long way off. Still, it's good to see a deal done with a real heavyweight in the sector.

Evo have reiterated their buy on SEY this morning, but I haven't seen the note:

"Evolution says buy Sterling Energy (SEY.L) and Premier Research (PRG.L) and add Punch Taverns (PUB.L) and Ricardo (RCDO.L)."

cheers gav. good to see you again!

Reuters - Exxon boosts Madagascar presence with Sterling deal

"Madagascar is one of a number of new oil frontiers being explored off the east African coast as high oil prices and scarcity of opportunities force majors to explore in areas previously not deemed highly prospective.

Production in Africa has been dominated by west African players from Nigeria to Angola and Equatorial Guinea.

Success at Ambilobe and Ampasindava could transform London-headquartered Sterling. News of the deal boosted its shares 2.5 percent to 20-1/4 pence at 1020 GMT on Tuesday."

Two prospective Company transforming deals in one year, means one of them will no doubt happen.

Cheers Prop, always good to take a break, especially when the suns out, doesn't really happen much up here!

SWW, good post, liked this part:

Exxon already has a 40 percent stake in the Majunga block, immediately south of Ampasindava, which is operated by privately-owned U.S. oil group Vanco Energy, and in which Norway's Norsk Hydro holds 30 percent.

Vanco has said that two wells in its acreage encountered gas sands with resources potential in excess of 1 trillion cubic feet of gas

Seems someone is interested in getting in on the Themis and Iris Marin areas:

"Afren announces the acquisition of two companies which own a 12.86% participating interest in Themis Marin and Iris Marin blocks Exploration and Production Sharing Contracts offshore Gabon.

Afren has entered into an agreement with Ascent Resources plc (Ascent) to acquire two wholly owned subsidiaries, Gabon Investments (Iris Marin) Pty Ltd and Gabon Investments (Themis Marin) Pty Ltd. These companies hold a 12.86% Participating Interest in the Iris Marin Exploration and Production Sharing Contract (EPSC) and in the Themis Marin EPSC respectively."

Gabon

Sorry, here's the link, can't seem to get these links to work!

http://www.oilvoice.com/m/uploadDetail_public.asp?upload_ID=4133

As I recall, Sterling have a large holding in Ascent.

I will need to look it up.

No actually Hardman sold on their bit to Ascent for shares, Sterling still own 20ish percent.

Nice deal for Hardman I should think.

But even better for Ascent.

Ascent floats, sells Gabon and has royalties, drilling starts August 2005.

As Sterling have 20% of royalties I thought worthy of posting Ascents RNS.

Monkeys.