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

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.

stockie and Andy - I can't beieve I said that!

I knew that it was a letter of credit, but for some reason my brain has not registered that when writing.

Thanks for reminding me.

SWW - No blame attaches - SEY refers to "repayment" itself in their circular I notice. Not having a go, just an excuse to air my thoughts.

SEY get their money back and the ongoing interest in 8% of field production. That's why it's such a good deal for them. They will get the loan repaid out of the production revenue, so they won't be waiting for a cheque from the Mauritanian Government. That's also why the possible deal to buy BLVN would make such good sense - they would be able to do it quickly out of cashflow and not have to issue any more diluting paper. Remember also, the new board member recently announced, has been signed up to help SEY grow. Corporate action is on the cards - and very soon by the looks of things. Exciting times. I was thinking of top slicing my SEY shares, but I've decided to stay put to see how things pan out.

Remember this?

Board Appointment

Sterling Energy plc, the AIM listed energy company with activities in the Gulf
of Mexico and Africa, today announces the appointment of Mr. Christopher
Callaway as a non-executive director of the Company with immediate effect.
Mr. Callaway joined the 'City' in 1973, initially with the London Stock Exchange
and in 1983, he moved to Capel Cure Myers (subsequently ANZ Merchant Bank) in
the role of corporate finance adviser, specialising in small and medium sized
growth companies. He became a partner at Coopers & Lybrand in 1990 before
joining Beeson Gregory in 1995. Beeson Gregory was subsequently taken over by
the Evolution Group in 2002 and on the merger Mr. Callaway became Joint Head of
Corporate Finance, retiring in December 2004. Since then, Mr. Callaway has been
involved in the flotation of a number of companies of which he is both an
investor and a director.
Mr. Callaway will join the Audit, Remuneration and Nominations committees of
Sterling.

Richard O'Toole, Chairman of Sterling Energy commented:

'I am delighted to welcome Chris Callaway to the Board of Sterling. His long
experience of the City and advising growth companies will be of great benefit to
Sterling as we seek to deploy the significant cash that will shortly begin to
flow from our investment in the Chinguetti field, offshore Mauritania.'

And the first 'deployment' is?

On the move, slowly but surely. We live in interesting times.

SWW,

Good comment re BLVN, thanks.

Soul,

Well we are now 1p down today!

Quite incredible IMO.

UBS reduces shareholding

Amvescap increases shareholding

Been a fuunny old day!

Been a rotten old day. My worst day for over 6 months! BUR, SEY and JLP all took a haircut.
UBS were very cute. The market held the price up just long enough for them to unload - and then wallop! Market manipulation anyone? Interesting that AMVESCAP have been buying in volume yet again. I would love to know what their plans are. They haven't bought all those shares without a good reason.

Pondy - JLP, SEY for that matter SCR and HNR.

All a matter of guessing when to sell and wait for lower to but back in.

Compare it to deal or no deal, and you can watch what we go through every day there.

The wise man does not punt too much, but takes what he can when he can, of course we have the luxury of guessing if in 3 years time things will be sparkling for a company or not!

They have the luxury of guessing if they really have 250K in the box.

Usually things will go well, and we can take the second option.

Sometimes we should really take whats on the table and see if we can get back in lower than we sold for.

If not, don't look back.

Great words but did I do it?

Nah..............

No deal.

SWW,

I really can't believe there haven't been any posts here for 8 days, with the share price at an all time high, and final results imminent!

Did anyone see the 250,000 trade after the bell?

BUY at 27.17!

Hi Andy

I Did :-) I also saw the UT yesterday at 27p could be a good close to the week??

Regards