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

jameel06,

I am expecting a price increase into the 20's, providing Mauritania startup goes ahead without any hitches.

I think T traders will come into SEY now we are possibly within 35 - 40 trading days of production startup, and this should produce an increase with volume IMO.

There's many a slip between cusp and lip, so there may be some last minute delays, but I have a feeling we will start more or less on time.

Don't forget that it is a phased startup, so there will be a gradual buildup to the 75,000 BOPD target production figure, over the period of a few months, so the additional revenue will increase exponentially.

Andy, your views are much appreciated... I'm gone stock up on Thursday see if sp stays flat till then and provided there are no hickups. Im sure I read the ft recommended SEY as a small cap tip.. What are your views regarding the success of Hardman vis-a-vis SEY, especially as both similar regional focus in Africa. But also how do you compare SEY with SER (Sefton)?? Views welcomed, cheers And

jamee,

Sorry just a brief visit, so a quick reply.

I rate SEY higher then Hardman, at the moment,due to their free carry in Ching, and some of the other wells.

Hardman and partners are spending some fair amount of money on wells that have not proved successful, whereas SEY are in for free.

Also, there is a cost overrun to the partners at Ching, but not to SEY, due to their free carry.

Once Ching is up and running, I plan to rotate some funds into Hardman, as they have some good exploration potential, particularly in the Falklands JV with FOGL.

I haven't studied SER so cannot comment, other than to say there is clearly an overhang, and if I buy, it will be after that is clear, and only if there is a much smaller spread.

Just in case anyone is interested, I am closing seawallwalker in favour of poo bear from now on.

Bye all.

Aye aye..........

We're up then!

Cancel that, just spotted you.

From Hardmans latest duster report the 2006 2007 drilling campaign.

Please note the duster is of NO, repeat NO, interest to Sterling Energy, but the drill program is very important next time around with all those lovely free carries.

I shall be looking to sell my Hardman position before then, one risk is enough I have decided and I prefer a free one.

Hardmans latest drilling report

Sterling holders will be particualarly pleased to see PSC A and PSC B getting so much attention in the 2006-2007 drilling campaign.

Mind you that seems to be the oily area so far.

"Upon completion of the Dore-1 well the 'Stena Tay' drilling rig will be released
by the PSC A and B Joint Ventures. With the recognition of a number of
attractive prospects in the shallower, eastern part of PSC A and B a rig capable
of drilling in shallower water depths than the targets of the 2004 and 2005
programmes was required. The 'Atwood Hunter', which is capable of drilling from
approximately 100 to 1,500 metres, has been contracted to conduct the PSC A and
B 2006 and 2007 drilling campaigns and is due to arrive in Mauritania in the
second quarter of 2006 after completing its current commitments. The initial
exploration wells will be drilled in PSC A and are likely to include the Colin/
Colin Deep, Kibaro and Awatt prospects. Hardman's 2006 Mauritania exploration
programme is expected also to include wells in PSCs B, 7 and 8. The 'Atwood
Hunter' provides the joint ventures with significant operational flexibility as
it is able to carry out work on any of the Chinguetti development wells, if ever
required, as well as conducting appraisal on existing discoveries

pooo bear, please te;l; me what is the signifance of this vis-a-vis Sterling... what r u trying to say with this posting? views warmly appreciated

jameel06 - I appreciate you may be new to Sterling, so here goes.

PSC A and PSC B are currently the only areas of interest to Sterling Energy. PSC B which contains the discoveries of Chinguetti, Tiof, Tevet, and Labneidna is where all the commercial or possibly commercial oil fields are.

Sterling has approximately 8% of all production royalties of the Chinguetti field, via the deal with the Governemnt, plus a royalty deal inherited from it's hostile takeover of Fusion oil and gas, where Premier bought Fusions interests in return for free carriews and a royalty deal. Chinguetti will produce at 75000 barrels of oil day at its peak.

Production is due to commence at the end of February (Hardman) or the start of March (Sterling) depending on what you read. In addition to that 8%, Sterling will get from Premier Oil as follows.

The Mauritania royalty from Premier Oil

In Mauritania, Premier received a 3% stake in PSC-A and a 6% stake in PSC-B. In
return Sterling will receive a royalty payment from Premier on production
attributable to the original stake sold by Fusion. The deal with Premier gives
Sterling a sliding scale royalty linked to all sales of petroleum attributable to
Premiers acquired stake in these licences. Thus Sterling retains some leverage to
higher oil prices.
In addition Premier will pay a $1m or $2m bonus to Sterling in the event of further
commercial discoveries greater than 50mm boe in PSC-A & B respectively.
Declaration of commerciality for Tiof or Tevet in 2005/6 would trigger payments of
$2m each.
Sliding Scale royalty payment
Gross sales price ($/bbl) Per barrel payment to Sterling
Up to $16 = $0.25
$16-$19 = $0.75
$19-$22 = $1.25
$25-$28 = $2.25
$28-$31 = $2.75
$34-$37 = $3.75
$43-46 = $5.25 (source EVO Broker Note)

So, to reiterate, there are 2 sources of royalty, The Mauritanian Government deal = 8 %( approx) and the Premier Oil deal as above.

At its peak, Premiers share will be 75000x6/100=4500 barrels of oil per day, assume $45 per barrel of oil- $8623125 per year for Sterling.

To that add 8% of total production and assume $45 per barrel of oil = $98550000


Total royalties to Sterling per year therefore $98550000 + $8623125 = $107173125 per year assuming $45 per barrel of oil.

PSC A contains Banda which is a large Gas discovery, as yet not declared commercial Sterling have no other interest in offshore blocks at the moment.

It stands to reason therefore that any further drilling in PSC A and PSC B are most desirable to Sterling, especially if further discoveries are made, and especially if they are within tie back distance to Chinguetti, as the same royalties outlined above will apply.

I have said, and will say again that Sterling is freely carried in the Premier deal in all drilling of PSC A and PSC B. They just can not lose.

In respect of the Government buy back in of Chinguetti, the Government is responsible for the development costs of Chinguetti, which has been funded by the share placing by Sterling.

I am sure this may generate comment; I certainly hope so, as this board is quite barren at times.

If you need more, please reply.

Poo Bear!!!! Thank you.. I guess it shows thaty one (like me) should start making his investment deicsions more on detailed objective and accurate data..... THanks!!

Am i right therefore the once spudding takes place the sp will increase and further again at drilling! I have approx 6oook shares in SEY and I plan to stick to this over the long term

jamee106 - I have edited the above in between posts.

In respect of investment decisions, don't wory about it, I have made some good ones and bad ones on much less info than this.

I have lived with this, as other posters have for a while now, and it has taken a while to understand everything concerning this deal.

The next big deal for me and Sterling is Madagascar. Sterling hold 2 enormous licenses, which Exxon bought into last year. These appear to be fast tracked now from what I hear and we may see movement within the next 6 months, with seismic.

If they get results that look good Exxon have a fast drill method which will no doubt be used on targets there, they have the equipment on adjoining licenses which they share with Vanco, so there will not be much in the way of waiting.

Sterling have a 30% free carry there.

Extraordinary!

How long do you think Sterling will have that if Exxon find something?

Not long imo, why would Exxon want to give 30% of anything to Sterling for nothing?

The answer is, they won't imo



Long term buy/hold.

Poo Bear... something is afloat with elp - elixir.. A prominent Norwegian oil expert (Lars Marius Furu) of Fondsfinans has predicted it to increase my approx 3,500% this might be slightly over optimistic ---- see below its in norwegian!!!

Lars Marius Furu sp aksje opp 3.400 prosent

Fondsfinans-analytiker Lars Marius Furu tror oljeaksjen Elixir Petroleum kan stige smye som 3.400 prosent. "Et spesial-case for sminvestorer", er dommen over DNO-partneren.


Artikkel av: stein Byberg (11.1.06 06:26)


Fondsfinans-analytiker Lars Marius Furu anbefaler kundene kje London-noterte Elixir Petroleum. Selskapet eier 40 prosent av Jaguar-feltet, hvor DNO sitter p50 prosent og Rocksource p10 prosent. Elixir eier dessuten 80 prosent av Leopar-prospektet, samt flere andre prospekter.
Ifge Finansavisen mener Elexir det er 25 prosent sannsynlighet for et funn p470 millioner fat olje. DNOs ansl et sannsynlig funn p58-280 millioner fat, trolig 138 millioner fat.

I dag prises oljeselskapet til 200-300 millioner kroner. Dersom DNO f rett, er verdien av Elexir p2,75 milliarder kroner. Elexirs egne estimater gir en verdi pfem-seks milliarder. Dersom Fondsfinans f rett, er verdien hele ni milliarder kroner.

Furu sl fast at dagens bskurs impliserer bare to prosent sannsynlighet for et oljefunn pJaguar-feltet. Potensialet er phele 3.400 prosent!

Dersom Jaguar-feltet skulle feile, er ikke fallhyden stre enn 30 prosent. Aks

My Norweigen is a bit rusty, I will finish it in a mo.........

There done it!

Lars Marius Furu am forecasting share up 3.400 per cent Fondsfinans - analyst Lars Marius Furu believing oljeaksjen Elixir Petroleum able ascend as much as 3.400 per cent. " a spesial - the files for a little investor ", am adjudication above DNO - partner. Article at : stein Byberg (11.1.06 0626:) Fondsfinans - analyst Lars Marius Furu commend clients to buy London - booked Elixir Petroleum. Company owner 40 per cent at The jag - cell , how DNO sit on 50 per cent and Rocksource at 10 per cent. Elixir owner again 80 per cent at Leopar - the prospects , and more other prospecting. According to Finansavisen considers Elexir it is the 25 per cent likelihood for a find at 470 millions fat oil. DNOs estimates a likelihood find at 58-280 millions fat , believable 138 millions fat. Today price oil company at 200-300 millions crown. If DNO getting correct , am the asset at Elexir at 2,75 billion crown. Elexirs own estimation administers a merit at five - six billion. If Fondsfinans getting correct , am the asset entire nine billion crown. Furu demonstrates that today's bskurs implicate only dates back to per cent likelihood for a oljefunn at The jag - cell. Potensialet is on the entire 3.400 per cent! If The jag - cell do be about err , aren't fallhyden bigger than 30 per cent. Aks

Epic is ELP

Speculative punt?

Maybe, wait one...........

Just a point here, the Industry average for drilling and finding commercial oil and gas is 25%.

Coincidentally, that is the figure quoted by Lars Marius Furu for the Leopar prospect.

I wont get too excited about this yet. One to monitor though, if the field comes in there will be an RNS, buy on the day because you know what they think it may contain.

That's the last off topic on this thread.

poo bear ur a genious! thanks for the interpretation,
BUT how do you compare sey to ELP

I don't.

...........and er, a genius I am not, but thanks for the thought.

poo,

Another frustrating week for SEY holders, but we are still a few weeks away from the (hopefully!) commencement of production, so the hot money is yet to arrive IMO.

I notice some of the ramper type posters have arrived over the road, a sign that it's about to liven up IMO.