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

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.

Been on hoilday for two weeks. Noticed the rise in SP while away which does not seem to have been explained. Perhaps this may help as it shows that the problems at Ching are now in the process of being resolved:

09:25GMT 26Oct2006-Sterling Energy rise 7 pct on Mauritania update

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Shares in oil and gas explorer and developer Sterling Energy Plc (SEY.L: Quote, Profile, Research) rise 7 percent to 19 pence on a positive update about the Chinguetti project in Mauritania, where Sterling has an 8 percent interest in drilling being carried out by Hardman Resources Ltd (HNR.L: Quote, Profile, Research) (HDR.AX: Quote, Profile, Research), an analyst says.

"Chinguetti has been disappointing but now Hardman are saying they are getting to the bottom of the problem ... they're going back to drill another well which should push up oil production in early 2007," says Keith Morris, analyst at Evolution Securities

There is a terrific 2 page spread on SEY in today's Shares Magazine, worth a read IMO.

Hopefully this will raise our profile a tad.

wonder if shares mag will be hyping a winner for a change ...... wasn't there a big article on SUB within the last week or so?

:-))))

Andy the profile can't be raised any more than it is.

At the moment PI's are not intertested enough to jump back on and that includes me.

I'm too busy being shafted by Australian and Canadian Oilers to think about Sterling.

What country do they come from?

cynic,

Like everyone, Shares get some right, and some wrong, but my point is they had a two page spread in a reasonably well read inverstment magazine, which is good exposure if nothing else.


SWW,

too true, some good news on the GOM well would be particularly welcome now!

Sorry to hear about your TXS and ASX trades, hopefully the oil & gas sector will perk up again soon.

i read the mag too, and find it very interesting

To be fair, I have not yet lost anything on the ASX othert than the profit I did not take in respect of ROC, and now they are doing a rights issue that I can not particpate in as I am ineligilbe. I am faced with a dilution that will only affect shareholders living in the UK who hold in a nominee account. SIPP's it seems this evening may not carry the same problem. I am contemplating bailing out on level terms which I suppose is netter than watching the shares get diluted. I could always buy back in later if I want to.

Of course I alsoi hld Hardman and have made a little, but that is the problem, it should have been more but for...........ML amongst others

TSX is Grove, I can't understand why they have disposed of the North Sea assets to Encore plus they have now drilled a duster in Romania.

**it happens!

Move on.

Now Sterling should have reported Theran -1 by now which spudded on the 19th Sepotemeber so that has to be a duster as the schedule is

"The North Theall Exploratory Prospect (34% WI), Talso in Vermilion Parish, south Louisiana, is expected to spud in early November, targeting a net 10-30 bcfe

http://www.sterlingenergyuk.com/common/downloads/Interim06.pdf

I suppose there could yet be a surprise, but it is looking doubtful.

2 more after the second so they must get one result I would have thought?

sww - spud in early Nov means they START drilling this week or next - no result due for however long it takes to reach pay-level - give 'em a chance.

stockdog, I am referring to the first drill Theran-1. that spudded on the 19th September and should be finished, not the second one which spuds this week or next.

Anyway here is something else.



Huntley Broker note lifted from HC.

Parts relevent to Sterling left in, the remainder can be found on the Hardman thread on advfn if you want it.

Huntleys Broker Note(no link, posteed by aka hooter on HC.(Thanks H)

Event

Last Update - 02/11/2006

HDR's share of 3Q06 Chinguetti production fell 26% to 458kbbls close to expectations. Sales volumes fell 34% to 563kbbls. Two oil liftings substantially reversed HDR's underlifted position. Only around 15kbbls remain outstanding. The average price achieved fell 6% to US$60.30/bbl. The ~US$10 discount to spot reflects uncertain Chinguetti production levels and 'new crude' status. A lengthy unplanned shutdown in late August and early September impacted output. Reservoir delivery was otherwise fairly stable and facility availability high..........



........HDR said measures to improve Chinguetti field underperformance are progressing. The first infill well Chinguetti-18 will drill from late 2006 to increase field deliverability. It targets a currently undrilled segment of the reservoir. A production increment of around 10,000bopd gross or 0.7mmbls annually net to HDR is expected. There appears to be little evidence of support from water injection to the reservoir. A review of the estimated recoverable reserves is ongoing and results are anticipated by year end. Expect a substantial downgrade. Tiof development concept definition studies continue. Expect some delay and potential cost inflation Project sanction remains scheduled for mid 2007..........."

A little more information here, I note that water injection is having little effect.

Not a good sign.

SWW - "little evidence of support from water injection" suggests to me that they are not using it much rather than it isn't working???

"Expect a substantial downgrade" - would you reckon this is in the price for SEY already, or is there more downside to come?

Water injection does affect the amount of oil recovered and the rates of flow as far as I am aware. this indicates that the injection well has encountered compartments which is why the recovery is affected.

I dont think it affects the sp at all as they are free carried.

The cause and effect of the price of oil and gas are the drivers at the moment with regards to the sp.

You have time to read what was here so it is removed now.

The offer remains.

SWW,

ROC rights issue is a disgrace to exclude UK shareholders when they will be diluted IMO, what is the reason behind that?

Hardman was unlucky, if Chinguetti production problems hadn't occurred, it would be over 1 now easily IMO.

Funnily enough, the only reason I did't buy Hardman earlier this year was the fear of just the sort of problem the partners now have, and of being too exposed to the one project.

Thanks for posting that review of the operations, it's good to read the negatives, and as the shutdown explains the drop in average production recently, there's even a positive in there!

Theran-1 may not be a duster, and even if it is, it's quite small compared to the other wels dur to be drilled in the current onshore program. Clearly a good result would instill a bit of confidence, so I am still hoping we may hear something, SEY have been slow to release good news in the past.

Stockdog,

SEY have already downgraded thei reserves estimate by 40%, so I think the comment referes to the other psrtners that have not yet done so.

Look.

It's not the right time, but as I follow this Company so closely, I am taking a few shares on board.

Buy now, buy later it really is irrelevant and it will qualify what I think of the Company.

It's a good one.

I will still research and post everything that I see as needing public knowledge for shareholders, good or bad.

I intend fully paid up so I will be on thew company Register again.

I think since fido challenged me, quite unfairly, so of his mud has stuck and this is a way of demonstrating that I like the Company without qualification.

So, here I am and to stay whatever.

This is written without checking as I am currently short on time.

Andy / SWW . .... notr quite sure why you think SEY is still a good bet, or do you both feel that all the bad news or downgrading Ching + possible duster are already discounted?

Nice to have you back on board sww. Keep up the good work.

cynic - as I have always said, this share is about Madagascar, short and simple.

Chinguetti downgrade is in the sp imo as Sterling went to great lengths to tell it how they saw it in the Interims which dealt with 50% IIRC.

In respect of the possibility of a duster at Theran -1, I would say that's a certainty by now.

Madagascar blocks adjoin those owned by Vanco and Exxon , Exxon are promoting Madagascar as highly promising, so this is not for now, for me, it's for later.

I think there is a good chance that Chinguetti will be further downgraded and I see that between the lines from Huntley.

The question is, how much?

Will it affect the sp?

Well the answer is yes but it will recover sooner than Hardmans would have done.

Frankly unless something big is found in th GOM, and unless Chinguetti gets a full face lift which is not likely, then Sterling need a diversification for revenue.

I do not believe they have money to throw around on new prospects or takeovers, more likely they are minding the reduced revenue from Chinguetti so that they can deal with those that they have to develop within the terms of licenses.

Does that answer your question cynic?

I thought you were in here too?