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

Thank you for that Seawall

I find the sp very difficult to fathom, most of the time, with this share. With consideration your explanation makes much sense. Also, there seems to be a large percentage of institutional investors, coupled with the large number of shares, imo it could be the mm's needing to satisfy large orders which reflects their sentiments with the sp.

I hold only 12k. I don't hold enough to concern me 1 way or the other but like you, feel there is so much potential and SEY appear to be penalised and other lesser stocks zoom ahead!

I am in for the long term. If my shares make a fortune I shall be able to retire early. Otherwise, keep at it. Back to the grindstone and see you later somewhere else.

Gerry

sww - I think you may well be expressing a self-fulfillinig sentiment. Lack of interest or progress leads investors and traders alike to look elsewhere for a more stimulating engagement - as likely losing as winning, but at least more active!

I'll sit on my modest holding unless price falls below 16p which I've set as a floor just now.

What else are you in? (in case I need to join you!)

sd

oil price has fallen and it is september when shares usually fall like leaves. nice time to buy more, i believe.

Hi stockie - you coments may be right, however, AST BLR TRP HNR ROC SIA VOD LLOY, the last two are ltbh, more so LLOY. I have held LLOY for some time now

I am looking at UU. SAB for the divi again but not due for a while.

I am interested in GBP JKX TLW JLP AFR AEX, I have bought into all of the latter but do not currently hold, the fact that they are on my watchlist means that I may buy at any given point.

I have half an eye on PANR, FAO more for interest sake really.

I will take note here too, and see how things pan out.

No advice intended, just my stilted views

I used to hold almost all my shares in CNA, and sold at a fantastic profit! I had LLOY for quite a while too, mainly for the high divi (too uninteresting), but cashed them in about 6 months ago when the new MD was appointed, and bought into SEY. At that time I believed in their potential and still do. So will hold and await Madagascar and other other developments with interest. They have done very well during the past year and have a good cash flow. I may very well sell HNR (which has languised for ages) and top up at these cheap prices. IMO DYOR....

I know what you mean about Lloyds but I have enough excitemt in my portfolio to forget I have them.

Oil Barrels presentation:

http://www.oil-barrel.com/conference/sept06/sterling.pdf

http://www.oil-barrel.com/conference/sept06/sterling.pdf

In my opinion the problems with the Ching field have been overplayed. The company say that the northern wells have been choked back leading to a loss of production. The reason for this is the inability to cope with resulting gas due to the failure of compressors leading to the inability to re inject in the field and Banda and processing limitations on the barge.
With the compressors now operational, it is my opinion that the ability to increase production is being played down because of the operators wanting to get a better deal on the plans for Tiof and Tevet which are due for submission soon, together with additional licences in Mauritania.
The object being to play the poor man to get a good deal and then crank up production. The only problem being that near term politics is causing short term pain with the SP.
Sterling are now negotiating a PSC and an announcement could come soon.

Hey fido, now you've gone and told the Mauritanian Government what the plan is! :-)

doh! :-(

sorry to be a wet blanket again guys, but all the indications are to stay clear .... used to be a holder about 3 months back but am glad to be out

CYnic
by january,you will be back again when the market's perception of SEY has changed, just maybe. I remember few months ago the investors chronicles put a sell on SEY but now it all changed to buy. in my opinion this company has the ability to do VOG. best luck

Sterling energy lifted interim production from its oil and gas fields in mexico and Africa almost twofold but said it had encountered problems at its biggest field.
Total production increased to 4671bopd but the group said it ran into mechanical troubles and issues with the reservoir in its field off the coast of Mauritania, which began producing oil in February. Sterling expects the fields' development costs to rise and has reduced its internal reserve estimate by 43% to 80million barrels. The field generated almost two-thirds of Sterling's 24.5m (6.74m) turnover in the six months to june 30. The group plans eight exploration wells in the next year, with five scheduled for the second half of the financial year.
Sterling is in negotiations with KURDISH authorities over a production-sharing agreement to develop a field in northern IRAQ. It is also to open a local office. Pre-tax profits rose to 7.2m(2.8m), while earnings per share jumped from 14p to 35p.
Sourced financial times 20sept2006

Interesting to compare prospects and sentiment for SEY with EEN, both of which I hold and both hit by serious down turn from recent peaks - 50% and 45% falls respectively, albeit from very different SP's.

Whereas SEY have good, growing cashflow and half a dozen exciting developments ranging from drilling new wells in two goegraphical ares to negotiating TEA's (or whatever stage they've got to) in Iraq and a management everyoine seems to like, EEN have a modest organic growth prospect in Colombia, a single new hopeful in Syria (another dry well would seriously jeopardise the SP) and a very distant new concession in Colombia with a management everyone seems tee'd off with.

I've set a strict stop loss on both at 16p and 200p respectively (late in the day I know, but I have recently renewed my vows!), but I'm secretly hoping I'm stopped out of EEN (where I don't have a proper sized holding) so I can boost my holding in SEY which seems much the more prospective story, leaving me with CHP, SEY and FOGL as mid/long-term speculative holdings.

Any views, anyone?

sd

Sterling expects the fields' development costs to rise and has reduced its internal reserve estimate by 43% to 80million barrels .......

and that is the nub of the problem ..... now add in Iraq, which is scarcely the most stable of locations, that crude prices are now 20%+ off their highs and currently showing no signs of recovery (ok, long term may well be different) and finally the precipitous downtrend of sp (dangerous to bet against such a trend) ..... and there is no good reason whatsoever to invest new money, though it looks as though there may be some chart support at around the current level.

cynic,

Interesting that whilst SEY have taken the (IMO) prudent step of downgrading their recoverable reserve estimate, the other partners have not!

The true position will not be known until Q1 2007, when the operator, Woodside, will update the market, so the position may be better ,or worse, than SEY's downgrade.

Either way, by taking a 43% hit now, they have prepared the market for the worst case scenario, IMO.

SEY have a largely free carry at Ching BTW!

Then consider the additional fields such as Tevet and Tiof, and the possible tie backs to Ching that would acrrue SEY bonuses and revenue, and the picture is perhaps not as black as it first appears.

Kurdistan is a risky place, but the Norwegians have drilled, found oil, and are preparing to produce there, so somebody looks as though they are going to make a profit from the country in the near future!

SEY are currently in negotiation for a PSC there that could lead to exploration in early 2007.

Sey are intneding to participate in the forthcoming licencing round in the Cameroon.

SEY are participating in four exploratory wells in W. africa in the next year, all with either a free, or virtually free carry.

SEY are currently drilling well 1 of 4 in the GOM, onshore Louisianna, with results due in a couple of weeks.

US gas prices have fallen , and are currently around $5, any cold snap in the upcoming winter will soon see that price increase.

Madagascar seismic and drilling in 2007, plus wells offshore W. Africa make up an interesting company and at 16p, is hardly overpriced, given expected revenues, and a continued and diverse exploration programme IMO.

unlike SEO which i think is dead in the water, SEY probably or even almost certainly has a future, but that does not mean that there is any need to dive in now ..... imo, better to wait and watch and (try to) make money elsewhere in the meantime

cynic,

"probably" has a future?


Come on, have you seen their revenues and profits?
And this is from reduced Ching production, and current low US gas prices.

SEY have quality proven management, increasing revenue and profits, and a highly prospective exploration portfolio, and that ticks all the main boxes for me!

With the current SP, and four wells to be drilled by year end, one due in the next two weeks, I think now is the time to be in SEY, as any decent result at the well head, or an increase in production at Chinguetti could be forthcoming at any time IMO.

You've got to be in it to win!

i repeat "probably" for SEY is only a minnow and many many things can go wrong ..... and no, i don't have to be "in it" just now, though it is not impossible that i shall re-enter at some future date ..... in the meantime, it would do you no harm to watch that trend; even you must admit that it is currently precipitous, and that is rarely without reason (qv SEO!)