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

prop, queen1

You cynics!

Steadied now, and volume has dried up, so I doubt we will see any more rise today personally.

As the results approach, and the subsequent analyst presentation, I feel we will move further northwards, at least until the pertinent points of the presentation are known.

I don't expect much from the results, but I do expect SEY to announce revenue projections for 2006 - 20077, and of course an update of their other projects.

We are due a drilling result from the GOM, I wonder if that will be forthcoming next week?

Cynical maybe Andy but if today was the result of a rocket it was a cheap one from Woolies that fizzled out rather tamely after a few collective "ooohs" & "aaahs" from the watching holders.

queen1,

Well I would have settled for this price at the open this morning personally, SEY never moves with any great speed, so early today was the exception.

I wonder whether this is the start of the run up to results, and possibly more importantly, the post results presentation?

I can't imagine they have gone to the trouble of organising that presentation without having something interesting to say, can you?

Andy, queen1,

Looks like I might have just got on board before they lit the fuse, hope the rocket keeps to its trajectory!

Andy - agreewith you on the importance of the future projection as the main accelerator for SEY. If it looks good and they keep the GOM on side this could be a cracker, either as an independent or takeover. No sign of GOM being any more difficult than any other Govt and they have the pressure of the IMF meeting in midyear to concentrate the mind.

Don't get me wrong chaps, I'm a holder and all for SEY and everything they stand for (bless 'em all). But you summed it up nicely Andy when you said, "SEY never moves with any great speed". Enough said. 1 by Christmas.....2046?!

3.5% p.a. compound - could be worse!

I thouhgt that pennant on the charts was never going to give way. I'll settle for 1p rise today (on the bid). Lots more to come and I think we might even see our 30p by the end of the month. Happy days are here at last.

queen1 - m8.

It has to happen?

The only thing that can go wrong is the paying of the cash from the agreement between the Government and Sterling...................................

Hmmm............

So, it can go wrong then? (Ever the pessimist).

Oh I'm sure it will happen. I wouldn't have held for 3 years otherwise! I just wish it would get a move on!!

Mmm........ me too.

MInd you certain other beauties are moving well :-))

Such as?

From today's Financial Times.
---------------------------------

"Bowleven eased 0.9% to 172p, in despite talk that Sterling Energy, up 5% at 26p, might seek to make an offer for the troubled oil exploration company"


Bowleven has a market cap of 48 million, and between 50 - 60 million in the bank!

Andy, that is a very interesting piece of news re Bowleven and I hope that there is substance behind the speculation - I've been banging on about BLVN being undervalued for two or three weeks, but was beginnning to think I'm the only one who sees it, as the lack of response on my discussion thread implies. Thanks very much for posting!

soul traders, have to agree re blvn.

Mind you any bid now on them would not attract full value unless there are more than one interested parties.

The formula looks similar to the Fusion Oil & Gas takeover by Sterling, in that the Management were seen as the reason why they were not backed by shareholders when the approach was made.

Reckon if there is any truth behind this, and the Sterling sp indicates something is afoot, then blvn will soon be a part of a rapidly developing Company.

Good way to use the repaid 97 mil, rather than a share buy back as muted by some imo.

queen JLP and SCR

One other item.

the 97 million!

The Mauri Government has recently been paid $100 million by Woodside, so there may be machinery in place now for an early repayment to Sterling, especially when you add revenue from the first two lifts and taxes collected which must be swilling around in the Mauritanian coffers by now.

Just a thought.

SWW,

Would that not be to the detriment of SEY, as it would reduce the % take from the revenue earned?

I can't believe they wouldn't have put some stipulation into the contract to prevent that.

SWW - of course, there is nothing to be repaid to SEY as such - they provided a letter of credit in the sum of $130m as collateral for Gvt of Mauritania [to borrow from a bank?] to fund its purchase of a 12% interest in Ching. As GoM is repaid (or repays its lender) out of proceeds from Ching, then the obligation on SEY's LC should diminish gradually until it is extinguished.

Don't think the 26th October shareholder circular from SEY mentioned expiry date of LC or other terms as to reduction in obligation. Can't tell how much of the $100m paid by W'side to GoM allows reduction of SEY's LC. GoM's share 12% of 75kblpd @ $55 = about half a million dollars a day - so could take in excess of 260 days to settle, if none of W/side's money is used for that purpose. Remember, the split between "cost" oil and "profit" oil is confidential between SEY and GoM, so we really can't tell the pace of release of SEY's 71.2m (actually used to support the LC) for other purposes.

In terms of the remaining funds raised, 8.5m was paid as a signature bonus to GoM and 7.0m was used to cover expenses and commissions on the deal. These need to be recouped out of the proceeds in some form. The balance of 10.3m was used a general working capital of SEY.

I hope SEY's forthcoming accounts make these mechanics clear, otherwise us poor benighted shareholders will not really know as much about SEY's cash position and balance sheet as I think we should to remain long-term holders. So far, I've given them the benefit of the doubt in light of the massive Ching prospects, but the day of reckoning is at hand. Time for HW to become a little more transparent, please.

sd

PS. Andy - in answer to your post which intercepted mine - the share of cost oil will continue until recoupment (as defined?) and of profit oil in perpetuity. What we won't ever know are the exact terms of "repayment" so we know how much of the 97m still on SEY's BS is unencumbered.

sd

stockdog,

I agree with you, it is time for SEY to become more transparent. to allow shareholders a chance to assess the value of our investment, and the long term income prospects.

Hopefully, the finals may reveal more.