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

goal

SEY tipped as a BUY in the Buisiness today, accoprding to a poster on another board.

Here's the link to the Business report;



http://www.thebusinessonline.com/Stories.aspx?Aim%20Investor&StoryID=6950C52E-F938-4031-A918-584CA7897961&SectionID=9A21BE85-0186-496A-9DFF-7C2F0883CFC3



Aim Investor
By Andrew Griffiths
05 February 2006


SHARES in Sterling Energy, one of the strongest hydrocarbon plays on Aim, have jumped after an announcement that production from the offshore Chinguetti field in Mauritania should start as planned in March 2006.

Sterling has an 8% interest in the field and described the event as a milestone that will transform the company. Add this to a sliding-scale royalty over 5% more of the field worth nearly $7 a barrel and promising other discoveries, and you can see why investors are starting to get excited.

Last October, an adjacent well discovered oil, helping to confirm Sterlings estimate of a field of 50m barrels. If declared commercial, Sterling would benefit from its royalty interest and tariff income as production is expected to be transported through a tie-back to the Chinguetti facilities.

A further exploration well is expected by the end of the year, and four or five more wells in 2006. Due to its royalty interest, Sterling pays no costs for any of these wells.

Sterling came to Aim in October 2002 by reversing into the oil production and exploration company LEPCO. At that time its main revenue-generating assets were offshore oil and gas production facilities in the US Gulf of Mexico. Since then, it has expanded into West Africa, through its acquisition of Fusion Oil & Gas and increased its presence in the Gulf through the acquisition of five gas fields.

Sterlings strategy is straightforward: it uses cash-flow from the low-risk Gulf assets to drive exploration elsewhere. Exploration activities are higher risk, but the company saves money by partnering with production businesses that bear most of the costs of extracting the oil and gas that Sterling finds.

Independent consulting engineers have upgraded Sterlings proven and probable US reserves by 5%. Of the total, 60% are in the proven category.

Sterlings production has been affected by Hurricane Rita although gas prices have since been markedly higher.

A farm-out deal with ExxonMobil for the Ambilobe and Ampasindava offshore licences in Madagascar adds to the gravitas. ExxonMobil will pay for a significant exploration work programme in return for a 70% interest in the licences. Chief executive Harry Wilson suggested rising cash-flows would allow Sterling to be bolder in exploration and selectively add further production assets.

Interim results to June 2005 showed sales of 6.7m and a pre-tax profit of 3.3m and earnings per share of 0.17p compared to 0.15p in the previous year. The shares were recommended at 13p. A strong hold.

Andrew Griffiths is managing editor of the Aim & Ofex Newsletter www.aimnewsletter.co.uk

at bloody last for the long suffering holders. a few of the placement at 17p finding its way out...

prop,

not sure what you mean there, but another nice rise this morning, slow and steady is fine by me!

Rising strongly on hight volume. Onwards and upwards.

All the interestin thing about this little mother. Is that I have seen the value of my stock increase day by day for the last month and for the first time for a while have we seen an increase of 4% vis-a-vis the usual of 1-2%!!!!! Now that HAS SIGNIFICANCE!!!! WATCH THE TOP BLOW ON THIS SOON!

Yes - sooner or later we are going to run out of sellers, but with so many shares in issue its a very liquid market. No sign of froth just yet.

Pond Lie,

I agree, planty of shares around, and a rising price on strong volume.

What's going on here today then? It takes a month to travel 2p higher and an hour to drop by the same amount. Hardly seems fair.....

queen1,

I agree, but it has risen a bit from the low now, -1.25p.

ALL oilers and most commodity stocks have fallen today, although SEY has fallen by a higher percentage than most.

oops - this wasn\'t in the script! At least it recovered some ground during the day. I suppose we were due a pull back at some stage.

But why Pond Life? After treading water while all around were doubling, trebling and better their share prices, why should this rise be pulled back? Not a critisism of your thoughts, more a need for understanding (and before you say it, I know that no sp goes up vertically...).

could the drop be a bit of fallout from the rest of the gang ,hnr and co oVer talks with new goVernment.I sold last week on this problem,then when sey carried on riseing bought back in higher.If we get all the oil flowing this month this is a Very cheap share,there income is at least doubleing.

queen1,

It seems to be part and parcel of owning SEY to be constantly frustrated by the lack of forward movement, but value will out in the end, I'm sure of it.

The Warren Buffet saying about the market being a "short term voting machine and long term weighing machine" springs to mind here.

AMEVSCAP have acculalated 23% of SEY, and I'm convinced that is a strategic stake that will ultimately come into play when someone makes a bid for SEY. time will tell if I'm correct.



Celby,

You may well be right, but I'm near certain that SEY are not involved in the minor spat with the Mauritanian government, and the government have cionfirmed that this dispute will not effect the Chinguetti production startup, probably because the Mauritanians need the income as much as the partners!

queenie - search me. The only thing that I can think of is that the run up from 16p to 25p took place very quickly and that it has just run out of steam. This co-incided with a day when most of the oilers were off - I also hold BUR and VPC and held DGO and MXP - so I took a bit of a hiding.
SEY looking very flat as I write. Hopefully just a bit of profit taking and churning prior to another rise. I have to say, however, that I don't subscribe to some of the wilder estimates of value with this stock. If we get anywhere near to 30p then I'll look to trim my holding.

Thanks for your thoughts Andy & Pondy.

Pond life,

Well it's never wrong to bank a profit!

I agree that some of the price estimates here are far too excessive IMO, but I certainly expect to see over 30p, within the next year, on current production in the GOM and AFrica, and maybe an exploration success or two.

IF Madagascar proves fruitful, we may see a price beginning with a 4, if not a 5 in 2007, IMHO.

Andy,

I like this one too, market should respond when black stuff starts flowing next week and so picked up a few more at 22.43 - look forward to your 2007 forecast!

Just read the Shares Mag. for what it is worth. Highlights the despute between woody and GOV. effect to ROC,Premier,Hardman, No mention of SEY. But would explain some of the small holders leaving this week. shame if they have used this information or lack of it.

anyone have a view on the increase on daily swings in share price over the last 2 weeks. It seems to have gone from 0.25p up or down to 0.75p

regards

Andy;
Well TB-2 was expected to take 50 days from 7th Dec, that makes 66 days
ago. If successful along with Chinguennti reaching full production by April, i was hoping this would help us to reach 30p a lot sooner.
cyril