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

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!)

Oil that is, black gold, Texas tea....


I don't believe in Peter Pan
Frankenstein or Superman
All I wanna do is

Bicycle bicycle bicycle
I want to ride my bicycle

I think this has a fair bit to do with this drop, plus the rumours that have been scotched.

Sp still in down trend though.

15p is next support.

Will it get there?

The sp performance in the last five years was excellent and this pause is a very nice opportunity to buy. cautious investors can wait to buy when the trend has changed but there is nothing to be cautious about here as the earning power of SEY is excellent. now for those who got in at 30p, i think it was a wrong timing but there are too much values here now. Best luck

cynic,

SEY and SEO are like chalk and cheese IMO!

They do not compare at all IMO, one has revenue, profits, exploration possibilities, and a large institutional holder, the other doesn't!

I know which is which, I hope you do too.


Hardman have had an offer!


Announcements

A$1.47 Billion Recommended Offer for Hardman Resources from Tullow (25 Sep 2006)

Hardman today announced that it has entered into an agreement with Tullow Oil Plc for the proposed acquisition by Tullow for all of the shares in Hardman.

Andy .... just because Hardman has been gobbled up, it doe not remotely mean that it is open season for lots and lotsof minnows to be similarly swallowed (as one swallow does not a summer make!) ...... and yes of course SEY and SEO are totally different; partly a little stir, but nevertheless with some validity when related to trend.

Good morning cynic.

hi Seagoon .... are you stalking me? .. lol!

Not anymore.

I like what you do though.

Keep it up, it keeps feet on the ground.

can't cope with compliments! ..... too used to fielding abuse!!!

LOL