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

Instead of talking about Ching decreases in production, we should be talking about Ching increases in production. As stated before Ching 18 is one of the next wells to be drilled when the Atwood Hunter has finished its current well, so it will be drilling the first of the remedial wells soon enough. As I said before, Sterling were ahead of budget even with Ching production cut by half because of the high oil price. By the time of their next lift the oil price will be back up again and we will have the minimum increase of 10,000 bopd from the first remedial well to look forward to. Even the news story about wrong doings by Woodside in Mauritania states that there will be three remedial wells to improve production and the long term field plan always included further stages of drilling to optimise production.
With regard Kurdistan, I feel that the thing holding up a PSC announcement is that Sterling want a contract that will be honoured throughout Iraq. We have had Sterling saying they have made excellent progress on talks and we have had the Kurdistan government saying that they are ready to announce deals. So as long as we can have a cast iron deal, then an announcement cannot be far off.
Yesterday PM`s in Iraq approved the federal law allowing self governing regions of Iraq, and that can only strengthen Sterlings case in Iraq. Any deal is also covered by rule 141 of the constitution making any deal uncontestable in court. The bottom line is that Kurdistan are not going to be held back by Bagdad, and have already warned Bagdad that self rule and the ability to do deals on new oil contracts is part of the constitution and that any medling by Bagdad will result in a re think in Kurdistans membership of a federal Iraq.

Taken from Oil Barrel, the figures quoted for possible oil in place on Sterlings licences are truly staggering.

Sterling Energy, however, does do high risk high reward. This is a company that has grown substantially since joining AIM in 2002: the 2003 acquisition of Fusion Oil & Gas, which gave the company a promising spread of assets across Africa, was followed in 2004 by the purchase of producing assets in the Gulf of Mexico and, importantly, the breakthrough deal with the Mauritanian government that gave Sterling what amounts to an 8 per cent indirect interest in the producing Chinguetti oilfield.

It is the contribution of Chinguetti, despite its well-publicised production problems, that helped Sterling post some record financial results for the first six months of 2006: turnover was up 263 per cent and net profits up 158 per cent as the five cargoes lifted to date from Chinguetti netted the company around US$53 million.

The oil in place [at Chinguetti] is the same but its become clear its a more complex reservoir, said chief executive Harry Wilson, who refuted rumours that the Mauritanian government is trying to renegotiate the contract terms. A major review [of the field] is underway by Woodside and the results should be ready in the first quarter.




Harry Wilson fields questions from the floor on Chinguetti

The problems on the field have led to a reserves downgrade. We are hopeful there will be no further downgrade but theres no guarantee, said Wilson. He stressed, however: Chinguetti is important to us but its not all this company is about. And when answering questions from the floor about the impact of Chinguettis production problems, Wilson pointed out that from the rise in oil prices has largely offset the production shortfalls.

Sterling also enjoys production from the Gulf of Mexico, where it has a very active drilling programme planned. One well is drilling now and three more are on the books for the next six months with the potential to double reserves and production. The Thunder Stud prospect, for example, has potential upside of 1.5 tcf and is classed as moderate risk. Whats more, if successful it could be onstream within a couple of months ensuring a quick return on investment.

But for Sterling, the real focus is exploration. Production is a high yielding annuity business, which is nice to have but its not going to make the company, said Wilson. You need to explore.

Unlike Antares, the company is looking for high risk, high reward projects - but it wants to undertake this kind of wildcatting using other peoples money. This is done by farming out to other players: in Madagascar, for example, where the structures could hold up to a billion barrels, Sterlings costs are largely carried by farm-in partner ExxonMobil. Its the same in West Africa: Premier Oil, for example, will carry Sterling in the drilling of the Themis well offshore Gabon, which could net the company some 10 million barrels.

Sterling is also prepared to take on political risk. It has signed an MoU to explore in Kurdistan and is currently in negotiations with the Kurdistan regional government about turning this into a PSC. Given the current political and security situation in that part of the world, investors are likely to regard this as one for the long-term. In all, it was an interesting and well-received presentation that kept delegates hooked and eager to know more - despite the lure of the ever popular oilbarrel.com lunch waiting downstairs.

Stockdog LOL :-))))))))))))))))))))))))))))))))))))))))))))))

SWW good post nice to get inside your head for a change. Don`t let Fido wind you he hasn`t come to terms that thier is a civil war going on in Iraq never mind the fears of Iran, Turkey. Have Turkey removed thier troops from the border yet?

The only thing I would ask you to consider is Bakara`s Heron well spudded? targeting deep plays. read link below. a new dimension?????????????

Tevet 2

with that said back to sparring gents. Fido you will lose to SWW he is playing so far.

Regards

:-)))

Stella strikes again

Hello Square.

Nice to see you posting here.

I did not know you knew Stella too?

In respect of Fido, I dont think I need do anything to be honest.

People know me as a poster as evidenced by comments here and elsewhere plus email's recieved, and will have made their own minds up.

He has lost respect.

At the end of the day, it's was only words.

I would guess that I am not too far wrong in assuming he is working on a loss with Sterling, which will have caused him to strike out like that. If he bought in the 30's, it will be uncomfortable.

Bakara`s Heron well spudded - yes I saw that, I'll look at that later today. Have you still got my email if you need it?

good morning seagoon ..... all well with you i trust ...... longish bike ride for me today to work up an appetite for a good lunch at an ace place in the Chilterns

Hello cynic, that could be a long bike ride.

Here is a site with a map so you can find you way home again.

http://www.chilternsaonb.org/sites.asp?type=2

Lots of yellow lollipops on the way

delightful ride through the back lanes, though quite strenuous ..... Marlow, Frieth, Wheeler End, West Wycombe, Saunderton, Lacey Green, Princes Risborough, Bledlow Ridge, Radnage, Sprig's Alley .... it's only about 25 miles, but some quite serious climbs, but the lunch made it all very worthwhile (Sir Charles Napier - highly commended) ..... The "girls" met us up there, so we put the bikes on the back for the journey home.

From TMF "Looks to me like Chinguetti is in serious decline. According to WPL's latest Quarterly Q3 Activities Report [ http://tinyurl.com/y33997 ] production is substantially down over Q2:

Q2/06 41549bopd
Q3/06 30985bopd

Quarterly decline 25.4%

We also know that average production was as follows:

July 35068bopd
Aug* 33018bopd *[Aug 1-22 only]

This implies that the production average for Aug 23 through September 30 was only 26593bopd

due to partial pressure depletion of a portion of the reservoir


so looks like we could easily be under 25kbopd now!!!

At this rate we'll be sub 20kbopd in the not too distant future.

No wonder Hardman have recommended the Tullow offer !

xxnjr

For those scepitics amongst us, this poster holds shares in members of the JVP (as I do), and has no axe to grind.

http://boards.fool.co.uk/Message.asp?mid=10230461&recscode=2

Sterlin have moved up rapidly early this morning Oct 26th.
Is there an offer from Tullow or what?

well spotted .... volume is exceptionally heavy too .... already 6/7 million when average is only 7.5 million all day

peter011/ Cynice,

Interesting, 1p up now, and as you rightly point out, heavier than usual volume!

Let's hope there is some good news on the way!

Dulpicate.

Duplicate

good repeats Andy, in case we did not read you the first time ... lol!
price now drifting right back, but very high volume has to be for a reason even if only some fund building an investment stake

cynic,

Ooops, the repeats were pc related, not sure what happened there.

SEY was tipped in Shares Magazine today apprently, but I doubt that would have caused such a rise, and certainly not the volume.

The price of oil has risen to $62 today and fallen back to just over $60.

That's why the sp rose.

The poo is more relevant to a good sp than some realise or understand.

I have a feeling the bad times are now behind this share as OPEC cuts are having an effect.

Also read Hardmans Quarterly in respect of Chinguetti production, remedial hopes and fears

Good luck you Sterling holders.

Still not coming in.

Also in answer to a previous enquiry; http://www.hdr.com.au/documents/news/00437_15%20May%20-%20Operating%20Cash%20Flows%20Chinguetti.pdf

"Production from Chinguetti is not expected to increase significantly from the present level until well intervention and/or additional drilling takes place. Such remedial actions are currently anticipated by end of the third quarter or beginning of the fourth quarter 2006. Optimally configured wells or sidetracks should add potential of at least 10 mbopd per well in the southern sector of the field and 5-10 mbopd in the northern sector. Plans for even earlier intervention, including sourcing additional completion equipment, are currently being evaluated though would have the effect of delaying the commencement of the 2006 Mauritanian exploration campaign."

some months back talk on here was that SEY may have been interested in these.
they have started to drill the HERON1 well onshore 50k from Chinguetti.

http://www.barakapetroleum.com/ENGLISH/projects_mauri_link01.html

SWW,

A post by hectorp across the road mentions "stability" in Chinguetti production, albeit at under 30k BOPM.


Hardman, which is the subject of an offer from Tullow, issued Q3 results this morning with much of the focus on Mauritania and the production issues that have beset Chinguetti since 'first oil'. Production in the field averaged 35.1 kbopd in July, 28.3 kbopd in August and 29.5 kbopd in September on a gross basis. Much of that has emanated from four wells in the south with minimal contribution from the two wells in the northern section of the field, with water injection providing little in the way of support. Reserve estimates for the field are under review and it is anticipated that an update on reserves will be provided at the end of the year. Relative positives that we would deduce from the statement include the relative stability over the past two months and, indeed, it is anticipated that gross production in the field will rise by 10 kbopd in early 2007 with the drilling of a new production well

Back to normal with SEY. This one has been hammered back down again. Disappointing.