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

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

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."

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

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.

Were they holders of Whittier by any chance?

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!

Reading between the lines, are Woodside planning to get out of Mauritainia?

See comment re LNG

i was informed that news was due on this pile of shit now it is down to less than 16 p who is running must be useless,

Can't argue your assessment.

I do not understand why the sp has ended up down here at 15.5 pence, but there it is.

The consoling point is that Institutions and Management own over 50% of the shares so that sp can not last long imo.

I bought back in tradig stock briefly recently only to sell shortly after as the price of oil fell, the two are linked no matter what some may think!

There are better stocks out there.

have got 220000 of these time for some action not all this jam tomorrow,

SWW .... you're right that there are better stocks to play with but your assessment that because the institutions hold >50% sp must de facto rise is cods i'm afraid

In which case the institutions will have caught a cold.

I'll leave the cod alone, it's having enough trouble trying to avoid being caught and eaten.

Bad luck then Tanker.

avg 16.86p

if you really 220k of them, that's still plenty of exposure to a dodgy outfit when 1p in either direction = 2200

As averages go with this stock, I know of some in much worse positions with Sterling shares, not that that will matter to you.

You average indicates entry either some time ago, or very recently, which is it?

FWIW I think the spike last year was driven by a PR machine and was completely unwarranted given that Chinguetti had yet to be tested when the first signs on the spike occurred.

We all know what happened there, and if I may say so, this board indicated early problems there as having a detrimental effect on the sp.

If you were not aware, PMO recently stated that production is 22kbopd on an average for 2006 a far cry from the figure touted as 75kbopd.

PMO are going to sell up all of their Mauritanian interests I see from their prelims. BG already recently sold out at a loss to the purchase price, and writing off production and exploration costs, Hardman sold themselves because they could not cope with the increasing costs of Chinguetti, way back in 2003 ENI and Agip sold out before development of the wells, I wondered why then, seems we have the answer now!

Barkara 2 weeks ago reported that their maiden hole in block 20 was an non-commercial HC find, Dana dug 3 dry holes, it don't look too promising in Mauritania does it?

The plus side is that Sterling has a free carry, and therefore free money taken at the gross sale price even if that is diminishing. Now lets turn to Chinguetti -18.

It has been drilled and will be brought into production imminently, good!

When originally drilled the figure touted for increased production was 10 to 12 kbopd, now I see from PMO's prelims they estimate 8 kbopd. Why the drop or are they being conservative?

More field problems?

Okay initially it may well do better than quoted figures, but I have a sneaky feeling it wont last, in any event the best that the JVP can hope for is 34kbopd at peak till more remedial wells can be drilled, meantime all these extra costs and the JVP who are paying costs, are sill to beak even, one year later.

Sterling have been very wise buying Whittier Energy a shame they had to issue yet more shares in the 16 pence placing. It's no wonder the sp has languished at that level than for such a long time.

No one can say if it will go up soon and by how much, or for that matter down and by how much even if the chart shows an incomplete head and shoulders now with the final down leg yet to go, that may not happen if a positive news event happens.

The future may well be bright with other ventures, but they are not happening yet, but don't look to Mauritania to do anything any time soon.

You can keep it!

Lead picture article on Business Section of yesterday's Times is all about Iraq/Kurdish oil fields and mentions SEY. Seems to be yet another headline saying "close to resolution of oil rules" with Kurds being independent subject to ratification by Baghdad - same old story.

SWW - as far as the chart goes you could as easily be looking a the right hand neck of an inverted H&S.

I've been in since Sep 2004 at a tad over 16p average, inclusing swapping in and out at a few pennies gain at one stage. I'm truly bored of O&G and much prefer trading profitable companies in tangible goods and services that I understand. Contemplating liquidating all my O&G stocks - CHP, FOGL, EEN. Why oh why did I not sell EEN and FOGL at last spring's ridiculous peaks!

SD .... i too hold CHP (but not the others), but as it is a fairly modest holding, along with similar in GOO and GTL, i shall prob stay put ..... DOO almost falls into the "rubbish stockpot" too, but that is starting to come to life, and in fact i think i am just about in the money ..... by the way, someone suggest i should short EEN (to keep my BFC short company), but i don't understand why sp fell out of bed in the first place

Hello stockie, liquidating O&G?

I have over the most part, leaving now just a couple, I'm happy not depending on the bit of luck with the drill bit to either make or lose a fortune according to the slant of the luck.

I have always felt a bit miffed at this one, (Sterling), held all through the sector rises on the back of the price of oil, this one did nowt!

The spike was nice but unsustainable then, and oh yes Kurdistan may do something, it may well be what is needed here.

I keep looking at some of the oil & gas "dead certs" that were "no brainers" to succeed, SEY, AFR, PRE, PANR, EME I could go on, where have they all ended up?

For the most part, in disaster land for holders.

You need balls of steel to stay with some of these nowadays, and my balls have shrunk through years of fear already without this, (hung up from my old job), so it's off to the lunatic asylum again for me, I need a little but of strong medication.

Oh sod it, Riesling will have to do.

Please excuse my occasional ramblings on once trusted shares, I can't help it while reminiscing, plus sometimes I want to be nice to people, the trouble is my conscience gets in the way, (but then so does the occasional idiot, present company excepted of course!).

good riesling whether new world or mosel or rhine is wonderful stuff and interesting varied; don't knock it! .... as for needing balls of steel to keep holding most of the stocks you mention, it's actually brain cells you need to know when to cut your losses and go elsewhere

And while I am waiting for my seawallwalker minors to come home, have a look at this thread.

http://www.moneyam.com/InvestorsRoom/posts.php?page=3&tid=11131

How many little oilers are in there?

BTW GTL @150????

So the locals have sussed that they can up the price of corn then and screw the boi makers once they have built the refineris then?

Nasty lot!

Bugger the Mexicans, they can't afford to make corn bread any more either. Don't try to invent bio fuel from beans of they will have had it and so will Mr Heinz.