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STERLING ENERGY big buyers about... (SEY)     

proptrade - 14 Jun 2004 11:58

anyone got any ideas about the block trades that went through today?

website: http://www.sterlingenergyplc.com/

graph.php?movingAverageString=%2C50%2C20

weather: www.nhc.noaa.gov/refresh/graphics_at4+shtml/084938.shtml?50wind120

seawallwalker - 20 Jan 2007 20:52 - 6728 of 7811

I said what I meant.

A company built on several recent acquisitions which includes a premium every time, and then a premium to buy.

This will require a bit of work with the drill bit I think.

At 96 million having assumed the outstanding loan and an expected 2P payback of approximately four years.

Here is what Whittier say about it.

1/19/2007 9:08:11 AM ET News Release Index


Whittier Energy Agrees to be Acquired by Sterling Energy PLC for Approximately $188 Million

HOUSTON, Jan 19, 2007 (BUSINESS WIRE) --

Whittier Energy Corporation (NASDAQ:WHIT) announced today that it has entered into a definitive merger agreement with Sterling Energy PLC (LSE:SEY.L) under which Sterling will acquire all of the outstanding shares of Whittier for $11.00 per share in cash resulting in aggregate merger consideration payable to Whittier equity holders of approximately $145 million. Sterling will also assume approximately $43 million of Whittier net liabilities.

The Boards of Directors of Whittier and Sterling have unanimously approved the transaction. In addition, Whittier Ventures LLC, holder of approximately 14.34% of the outstanding shares of Whittier, has agreed to vote in favour of the transaction. The transaction is subject to routine regulatory approvals and other customary conditions as well as approval by Whittier's stockholders. The transaction is expected to be completed in the first quarter of 2007.

Bryce Rhodes, President and Chief Executive Officer of Whittier said; "This transaction allows Whittier Energy stockholders to realise substantial value at an attractive premium. It is keeping with our stated strategy from the outset of creating value for our stockholders by monetising at the appropriate time. This has all been made possible by the very talented team of Whittier directors and employees. Their hard work and dedication has made the rapid growth of the Company possible and has resulted in significant value for all the Whittier stockholders and I'd like to take this opportunity to say thanks to each of them."



http://www.integratir.com/newsrelease.asp?news=2130981504&ticker=WHIT〈=EN

They have not given it away, there are no similarities to the acquisition of Fusion Oil and Gas which was a steal.

They have paid the Market price and then some.

It's a good fit to the Company. It should do very well for Sterling and the shareholders. It also makes the Company look very attractive to any other Companies of a like mind, but not yet.

I not buying either for probably the same reasons as cynic.

I have enough oilers, and I am looking to other areas for investment.

As usual no advice given etc.

Does this mean I will stop, posting on the SEY board?

Not on your nelly.

I'm still interested to see what I am going to miss, other than the better quality posters here.

Some may exclude themselves in my view.

I see the price of oil was not supported at $60 after all.

stockdog - 22 Jan 2007 09:30 - 6729 of 7811

I ned your help, guys - from one of the more knowledgeable oil threads around.

I have 10% of my portfolio in oils spread across 4 shares - half the normal 5% I allocate to each of my stocks before going overweight.

I now realise I don't know very much about oil stocks and am being drawn towards more trading stocks like ASC, COH, DGT, MYH, RCG which I find I do understand and can do my own analysis on (margin, ROCE, EPS, PE, PEG etc) pretty competently. Whereas I fins oils a mixture of prosaic trading and pure speculation. Much as I like a flutter, it's not a reliable way of building my pot for me. So I contemplating reducing/extinguishing my exposure to oils.

Of the four stocks I hold, CHP, EEN, FOGL and SEY (all of which appear to be on the brink of the "big break through" - well, maybe FOGL has a yeaer of two longer to wait than the others) in what order would you advise me to dispose of each in turn - leaving the best prospect till last, of course?

Perhaps I know what the answer from this thread will be, but nonetheless TIA!

seawallwalker - 22 Jan 2007 10:27 - 6730 of 7811

.

stockdog - 22 Jan 2007 11:34 - 6731 of 7811

Thanks - poo! Intrigued by your sell winners and hold losers philosophy.

seawallwalker - 22 Jan 2007 11:42 - 6732 of 7811

.

seawallwalker - 22 Jan 2007 12:07 - 6733 of 7811

Stockie - let me ask you a question, if you thought the recent Sterling acquisition was such a good deal, why are you thinkiing of selling?

cynic - 22 Jan 2007 12:33 - 6734 of 7811

perhaps he's noting that the market is unimpressed by the latest news and also that small E&P companies are not the best place to be at the moment while crude prices continue to weaken

stockdog - 22 Jan 2007 19:41 - 6735 of 7811

I'm thinking of selling because I have developed a personal preference for non-oil sectors where I am doing better and feel more confident. That said, I still think SEY's acquisition is a good deal for SEY. These two ideas are not mutually exclusive.

Cynic, when you support anything you say with any research or evidence of any kind it will start to carry more weight than mere opinion.

Perhaps the veiled hostility on this thread from those who think they own it is reason enough to sell. I like to enjoy making money as well as just making it.

cynic - 22 Jan 2007 21:21 - 6736 of 7811

stockdog ...... i care not one iota if you follow what i suggest or not ..... i rarely research; not my idea of fun and am happy to leave that to others whom it excites .... for myself, i tend to follow trends and that has served me pretty well, and continues to do so ..... hence, have put money into ICI, RTN, DOM, SHP, Gold, SSL etc and shorted BFC ..... of course I also have my share of stinkers like VOG and CHP and GOO, which I fondly though perhaps vainly hope will show profit in due course, as similarly with CSR and BUR (much more likely).

As for SEY .... well i recollect making money from this share in the past, but cannot get at all excited about it in the prsent climate.

By the way, i guess too much research led plenty down the worse-than-blind-alley of the likes of PRTY and SEO.

seawallwalker - 22 Jan 2007 23:44 - 6737 of 7811

stockie - don't point fingers, it's not polite!

I think Sterling is a great Company in the making, I just don't think i will live long enough to see it, so who ever wants it can have it and good luck. You have been here as long or nearly as long as me, and my patience has run out, so has yours it seems.

New holders may want it for another 3 to 4 years but unless they get a real grip, those holders may well be in the same boat as me and you later on, but I will be elsewhere then!

As far as hostlity goes, honest is often hostile because people won't listen uless it suits them.

It is quite clear that Mauritania is is severe difficulties now, Hardman sold out, BG, sold at a 50m loss. ROC don't care with average 4%. USA may be the new Company maker, but lets face it Mauritania was too, and here we all still are, still waiting..........................

I think they paid too much for acquired assets at a premium in USA it could well pay for itself, and it is on the face of it a good deal but at a premium.

Sell up and move on, or take a loss if you have to, it's your choice.

I have been trading this co, for a while now as the range is predictable, and I may well continue to trade it, but LTBH?

Forget it!

You have developed a personal preference for non oil sectors?

How come it took you so long?

I did the same and just did it but I also have been honest with myself and sold up because some of the stocks are lame ducks.

seawallwalker - 23 Jan 2007 07:55 - 6738 of 7811

cynic - you rarely research?

Speaking as one who does often research, (too much), I think that yours is the best approach.

seawallwalker - 23 Jan 2007 08:05 - 6739 of 7811

And if I am fair, fido does sell the company well with his research.

Those who like to know in absolute detail all of the possible ins and outs would do well to read his posts thoroughly.

This does not mean I want to be his drinking buddy any time soon however.

cynic - 23 Jan 2007 08:12 - 6740 of 7811

SWW .... if there was a sure-fire way of making money by using research or momentum or charts or whatever, then we would all be retired somewhere warm! ..... i certainly do not ignore others' research; it's just that i am too idle and too stupid to be able to do it myself

canary9 - 23 Jan 2007 09:04 - 6741 of 7811

Why the lack of interest in oil and oil related stocks? Sure the returns over the last year have not been the best, but it depends at what price you are buying. Over a period of 3 to 4 years there are not many oil related stocks that I have lost on, and there are many you would have more than doubled your money on. Most companies are moving ahead with their plans and there will be disappointments on the way,but their share price is a punt on where the oil price heads over the next 2 years. We know demand will rise steadily, but what of supply? Over the longer term the oil price can only go one way imo.
One sure way to lose money is to follow the herds into fast rising shares unless you are a short term speculator. Far better to wait until the herds have lost interest and the shares have plummeted usually on no news, or lack of interest imo...or be there before the herd. I am more than 40% weighted in oil and energy related stocks at the moment, as I am concerned aboubt debt in the Western world and the lack of growth there. Asia is a different story.....
Many oil stocks have good asset backing and are on low forward PEs, oil service stocks are growing fast and many very profitably, but you do need a spread so that gambles on the more speculative stocks are just that...money you can afford to lose.
If we have seen the oil price bottom for the moment the herds will be chasing the shares again soon and we can take some more profits!
Not the time to be pulling out imo, but do your own research. As always though it is a gamble!

TANKER - 23 Jan 2007 10:20 - 6742 of 7811

buy buy, excellent news ,26p for sure soon,

seawallwalker - 23 Jan 2007 13:17 - 6743 of 7811

Oilbarrel

"23.01.2007
Sterling Energy Strengthens Its Production Base Significantly And Can Fund A Greater Level Of Exploration Through A Neat Takeover
The recently announced takeover of US NASDAQ-quoted Whittier Energy Corporation by London-listed Sterling Energy seems to tick all the right boxes. Sterling is paying US$145 million (approximately 74 million) plus the assumption of an estimated US$43 million (approximately 22 million) of debt for the entire issued and about to be issued share capital of the US gas producer.

The purchase is to be funded from approximately equal amounts of existing cash (Sterling has around US$80 million in its war chest, it is thought) plus new equity and debt. For this purpose 26 million (approximately US$50 million) gross has been raised through an institutional placing of 163,250,000 new ordinary shares at 16p a share and a new US$100 million debt facility has been arranged with Natixis.

Yes, Sterling is paying a premium of 26 per cent to the closing price of Whittier on January 18th 2007. And, yes, a value of US$15.8 per boe (US$2.6 per mcfge) of proven and probable reserves, which might seem a trice on the high side, has been arranged. But there is hardly any dilution (Sterling's market cap is around 225 million) and the benefits of the takeover can hardly be gainsaid.

Sterling's current production will almost double from 3,400 boepd to 6,500 boepd. 2P (proven and probable) reserves are estimated to increase from 12.9 million barrels of oil to 24.8 million boe. Annualised cash flow from operations is estimated to rise from US$35 million to US$80 million.

The key point, however, is one made by Sterling's CEO Harry Wilson, namely that the Whittier takeover de-risks a large part of production while significantly increasing the scale of cash generation and allowing the company to build its portfolio of exploration projects.

Sterling's current production comes from offshore the US in the Gulf of Mexico and from the underperforming Chinguetti field offshore Mauritania. Sterling will wash its face from the investment offshore Mauritania, but it has thus far not been the cash cow once envisaged. Whittier's production is onshore in the US and therefore lower risk than offshore the US and Mauritania.

Whittier operates over 50 per cent of its reserves. There is a programme of near term exploration projects with substantial upside in train. Over 40 low risk wells are planned. This complements Sterling's own 2007 exploration programme, which together with Whittier, means the group is targeting 60 million barrels of oil equivalent.

Harry Wilson and his team of executives, who have been together a long time and have built other companies in the past, have never made any secret of the fact they do not want Sterling to be just a cash flow business based on accumulating production. They want the big step ups exploration - including frontier exploration - can provide as well. Chinguetti did not quite fit the bill, but there will be other forays to make new discoveries."

cynic - 23 Jan 2007 13:26 - 6744 of 7811

as usual, a well written article from Oilbarrel ..... but still no compelling reason to buy SEY at this moment, though that could change some time in the future ..... surely at least 12 months off, and quite probably a lot more

seawallwalker - 26 Jan 2007 16:31 - 6745 of 7811

New kids on the block.

No doubt one of the placing beneficiaries.

Sterling Energy PLC
26 January 2007




Sterling Energy PLC (the 'Company')
Holding in Company


The Company received a notification on 25 January 2007 from MassMutual Financial
Group on behalf of The Massachusetts Mutual Life Insurance Company
('MassMutual') that, as at 22 January 2007, MassMutual's subsidiary
OppenheimerFunds, Inc, had an interest in 60,000,000 ordinary shares of 1p each
in the Company ('Ordinary Shares'). This interest represents approximately 3.83
per cent. of the issued ordinary share capital of the Company, being
1,566,200,558 Ordinary Shares.


Pond Life - 26 Jan 2007 17:17 - 6746 of 7811

Were they holders of Whittier by any chance?

Ray A - 27 Jan 2007 21:04 - 6747 of 7811

Just noticed in today's FT Directors dealings and not previously posted here, 4 Directors, Harry Wilson, Graeme Thomson. Andy Grosse, Paul Griggs each bought 150,000 at 16p as part of the placing on 18th Jan. At least that shows confidence in the future!
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