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

The company (SEY) sells some or all of its oil production forward at a predetermined price ...... This protects against a fall in the price of crude but of course loses any additional profit over and above the price at which they have contracted to sell.

saintserf,

They sold some of the GO gas at a hedged price, but they do not have a hedge in place for the majority of Ching oil to my knowledge.

What happened to the price today? We appear to have taken a late dive for some reason. That plus a late trade for over 6 million shares. I topped my holding at 25p. I am now wishing that I had sold the lot.

Pondie .... prob no reason at all other than peeps tidying away their positions ahead of w/e ..... My own feeling is that this share should be worth quite a bit (no idea how much) more, especially as Amvescap clearly think it's worth having a 25% holding ...... However, the stock is currently out of favour with the punters, so shall just sit on the relatively small holding I have

I put this on the board a few days back

Starts:-
Posted by remus98 on advfn 26/5/2006

"This has been on the http://www.africaintelligence.com site for a few days. I've tried to speak to SEY and have emailed them but no one avaiable to speak to me.

"AFRICA ENERGY INTELLIGENCE N417 - 24/05/2006
OIL & GAS
Sterling Braces for Change
Africa Energy Intelligence understands the Mauritanian government is seeking to re-negotiate the stakes of Britain's Sterling in the Chinguetti field in Mauritania's offshore. (...).
[ 354 words ] [ 4 ] Read the article"

_______________________________________________________________________________________________________________________________________________

Followed by this yesterday.


Mauritanian deal to be renegotiated?

So says remus 98 on advfn thread.

remus said, "SEY did ring me back eventually and mentioned the meeting above which he said would be in the coming week. He didn't know how it would go and quoted Gordon Brown's 10% shock, they just had to negotiate but some of the amendments were to bring the agreement into line with standard oil documentation...........

http://www.advfn.com/cmn/fbb/thread.php3?id=10427549

I ask, is this the reason?

Funny time for Amvescap to buy more if it is the reason.

Personally I would not panic, as any renegotiation is better than a total unravelling of the deal.

Of course the Mauritanian Governmet is no longer as poor as it was.

DYOR etc

There is no big mystery why the share price has gone down. Sterling has very small earnings but a large expectation value placed on the Company mainly in respect of Mauritania.

Unfortunately the bad news out of Chinquetti 75 to 41 thousand barrels a day and the renegotiation of the previously agreed contract with Woodside when markets are jittery is the last thing you need. Furthermore Oil is not expected out of Tiof until 2009 at the earliest. As a Hardman shareholder I am also suffering some pain.

Evening gents

SEY have hedged $38 lowest limit they can recieve anything over $45 has a reduction of $4 put on it so at present $70-$4 SEY would recieve $66. Hope that is clear.

SAR`s RNS now has anyone noticed. 1: They did not have to put out that RNS. It was niether on a % threshold nor had it taken them through one from the previous RNS ??

2: Low and behold a 6 million trade appears at the end of the day.

3: It is the first time I have seen a list of holdings for each firm / Fund I notice from memory Invesco London have now gone and transfered thier holding to Invesco Perpetual. I would love to know who exactly VIDOCAS NOMINEES ARE?

Few points being missed Mauritanian Goverment stated quite clearly THEY WILL HONOUR ALL INTERNATIONAL AGREEMENTS. Woodside caught with a bribe??? but still had the option to go through the agreed procedure to resolve the issue.That is why they faced the music

SEY payed a $15 million bonus clearly stated and up front. Are we saying that SEY bribed the last goverment to get the deal? or are we saying that the $15 million was above board but did not reach the treasury (SEY`s fault then).What about the JV`s $100 million bonus?

The worst will be 5% on oil above $55 same as Woodside but I personnel do not think it is that obvious. Tie backs is were the issue lies IMHO and I am hopeing that we will get clarification on this issue at the AGM.

Regards
Have a good weekend

This is the real reason for the drop off..........
FT.com

Equator Exploration rose 12.3 per cent to 114p amid talk that fellow oil and gas explorer Sterling Energy was considering a bid for the company, attracted by Equators Nigerian concessions and cash pile. Sterling shares eased 6.4 per cent to 22p.
http://news.ft.com/cms/s/543e05c4-f789-11da-9481-0000779e2340.html

Morning SWW

Good find & nice fit from what I have just read.

Regards

Could be a very good deal for HW. KBC Peel Hunt put a target of 500p on EEL as recently as March (ancient history in current market conditions). My understanding is that EEL's current market cap is almost entirley covered by their net cash, so the enterprise assets are in the price for free. Even allowing a bid premium on the current bombed out price, SEY could get ot below NAV at 171 p per share. Exciting times.
Having felt thoroughly dejected at close of play on Friday I am now feeling very chipper again. Roll on monday, bring it on....

Morning SWW,

Many thanks for that, still not sure why we would sell off so quickly though, I see that speculation as positive for SEY.

Harry did a great deal for SEY with the Fusion, and I'm sure he would achieve another one if this goes ahead.

Like pondy, that article has put a spring back in my step!

churchill2,

A repeat of your post on ADVFN, and as a Hardman shareholder you seem to have missed some of the differences between the two companies.

SEY stated before Chinguetti production that it would take some months to achieve maximum production of 75,000 BOPD, yet Hardman raised peole's expectations by declaring dull production had already been reached, only to dash them when the problems in the north field started.

SEY, correctly IMO, allowed for some teething troubles, unlike Hardman, who rushed out the "fulll production reached" statemement.

Sey have a seperate deal with the Mauritanian government to Hardman, and I have not seen anything official to question the validity of this agreement to date.

SEY have an increasing production in the GOM, much smaller than Ching, but a profit earner nevertheless.

The 12% royalty from even 41,000 BOPD will still increase SEY's 2006 earnings very substantially, and once the production level is back to normal after the technical problems are resolved, hopfully during Q3, 2007 should be a bumper year.

The delcaration of commerciality of Tiof is far more important IMO than the start of actual production, because if it happens, it will alow SEY to book more reserves, and hence increase asset value.

And now we have rumours of a deal for Equator!

Equator shareholders wish!

Andy

sorry to question you

But Tiof is outside the Ching field boundry so SEY would only benefit from the Premier deal. Am i wrong on that? If so I will be happy to be lambasted. Tevet /Lamb and possible Banda would boost SEY`s reserves.

Regards

Dr Square,

I think you are probably right, from their last staement below;
-------------


PSC A and B have delivered a high exploration drilling success ratio with four significant discoveries from 8 wells - Chinguetti (2001), Banda (2002), Tiof (2003) and Teve't (2004). First oil from the Chinguetti discovery is anticipated in March 2006.Evaluation of both the Tiof and Tevet oil discoveries is underway. The Teve't oil and gas discovery lies 10km east of the Chinguetti development, within tie-back distance. The Tiof oil and gas discovery lies 50km to the north of Chinguetti.

In addition to oil developments, gas discoveries (Banda) are being evaluated for potential European and North American markets.

Sterling's interests include a sliding scale royalty based on oil price coupled with specific cash bonuses for each commercial discovery in PSC A & B; and an economic interest derived from our financing of the governments 12% interest in the Chinguetti Field.

The Royalty and Discovery Bonuses
Royalty payment is linked to oil price, for every barrel produced net to a working interest of 3% in Area A, and 6% in Area B, subject to the Government's back-in rights. Also cash bonuses of $1mm for a greater than 50mmboe discovery in Area A and $2mm in Area B are payable to Sterling.

The Royalty payment per barrel escalates with oil price and inflation. For an average price of $50 in 2006, the royalty will be $5.87 per barrel.

If SEY made a bid for EEL there would be a counter bid by the likes of Chevron etc:

so are you going to buy EEL on Monday? ...... I shan't as got myself burnt last time I though they were cheap

cynic,

me neither, as the "news" (rumour) is already out, the price may gap up at open, and then you're playing into the MM's hands if you chase the price.

If the rumour is unfounded, it will be down again at double quick speed, and of course if it rises too much, any interest SEY may have could be extinguished as the deal becomes more expenive and loses it's premium to SEY.

News we may of missed.

Cameroon developments

Regards

Dr Square,

Are you a regular reader of the Tehran Times by any chance?

Interesting article though, and thanks for drawing our attention to it, it's high time this particular border dispute is resolved.