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

Thanks,
You'r right. Editted
http://biz.yahoo.com/ap/080407/oil_prices.html

looks like sterling have scraped the bottom of the barrel,get it!
what chance for a recovery?

Either the recent announcement is a fire sale or this is a good stategic move. But selling their assets in the US will have a negative impact on their cashflow greater than the cost of servicing their debt, using the sale proceeds on exploration will have a detrimental effect on their cash resources.

My friend donaferentes' view from another site with which I concur:-

SEY have been a diversified small time operation hitherto - both producer (US) and explorer/developer (Africa/ME). Selling the US producing operations is a good thing:-

1) If Acamas is correct the US operating margin is 30% with net profit of 10% after local/central overheads and regulatory costs (43 jurisdictions!), so it should be worth 30% margin, less very little additional overhead to an existing (US?) operator already dealing with regulation, to buy. So no reason we should not get a good price.

2) Having sold production, we become a pure explorer/developer which has always been the most exciting part of the company which they have managed well, getting into licences early then farming out for a good free carried interest etc. Seems like some licences are going to come good in the next year or so, no longer needing the production cashcow to keep the company going.

3) Geographically we will be concentrated within two closely proximate areas of the world Africa/ME - virtually one area. So much easier to run. And losing all that US regulation and overhead cost - what a relief!

4) Debt free - have you any idea how light headed we should all feel as the credit crisis lurches on to its nadir in a year or two's time still to go? Fantastic.

5) We seem to have a great little collection of diversified explorations to look forward to with a good deal of cash to get there.

6) Acamas (again, sorry!) complains about management change of heart. There hasn't been a change of heart - it's been a change of management! Most welcome - pace HW.

7) Shit or bust - that's the nature of exploration. But from this SP level the risk-reward ratio is far better than the current dual policy.

Great strategic decision with lots to play for IMHO!

Hi Stockie, seems those who have been around this share for a long time more or less concur.

I am afraid there has been an awful lot of heads in sand here and over there concerning the financial position of Sterling, the recall of their loan back in November, which the pi's were not told about is what caused all this sp distress post David O'Brien's first notifiable interest.

To manage to pay off the loan should any sale of US assets occur is a real bonus during this current climate as any residual cash will fund other imminent activities and still pay the Board their bonus.

It's still a high risk because they may not get a sale, or they may be striped up as I would have thought it is now a buyers market due to financial constraints, and I think this proves that the Whittier purchase was a very big mistake when it occurred timing wise, something they learnt on retrospect.

However, now with a decent sale, things should work out.

Ha well, we shall see as always.

stockdog,
Thanks for comprehensive review. It reminds me of Dragon when it decided to close its headquarter in London to move to Dubai. Oil price was $10 and DGO was 11p at the time. It was a great move.
Sey is close to selling a part of its asset at 150M, at the time it's profitable, its market cap is 133M and has substantial Oil reserves and huge potential. It worth twice the current levels. IMO

shares.mag- possible target 50p???

Realistic once they have found oil in Kurdistan of quantity but they need to sell the US assets first or I suspect the game may prove rather difficult.

Short term price target without US asset sale is 22p according to EVO their house broker.

What on earth Shares used as a calculator I don't know, probably split peas.

FWIW the price is right just now until they have a stroke of luck or sell the assets.

the price 50p is by evo sec analyst.
may be one of the US companies will buy, it could save money only admin costs with authorities???

The problem here is that the USA assets are producing...., correct me if I am wrong but I think the production will be almost zero when they have sold them....the good thing could be : no exposure to hurricanes which put off a lot of investors...including myself, or are they keeping some gulf assets ? (will have to check that), perhaps in 6 months this could be very interesting....!

poo - Shares usually crush the peas to get the numbers up!

true, they do get some of stuff very wrong. but if you watch broker recoms. evo sec had sey "buy" all the way till it (hopefully) hit the bottom.now still "buy"?????

Have reached bottom?

Well, maybe just scratching it!

Plenty of volume today 25.7M and some large trades, maybe the overhang is clearing
and the shares are ready for a proper bounce and stay there

Further to my previous post....yes all USA assets will be sold and they still have Mauritania....could be interesting later !

Yes could be............. thanks stockie.

Master, I am afraid you can post all the charts you want to, they may or may not say what you think they do.

Far better to wait for a result and then post one, more likely to get it right imo.

I think this will hover around here till something happens then it will move up or down according to the news, basic for a news driven stock.

If I were to bet I would say up is next, with a successful appraisal well at Banda which is a know quantity.

If Chinguetti succeeds then it will fly, if they sell USA will fly, if they fail at any of these, dont be a widow or orphan dependant in them.

Thats all!

poo bear

I spoted this morning a posible change of direction saying "KEEP AN EYE" on another thread.......

11 Apr'08 - 09:53 - 171 of 198
Keep an Eye (Added by Master RSI on Fri 11 Apr 09:52 am)

SEY - Mid 8.05p
Reason - On the bounce after a couple days of dropping on Two very good news recently

As I know you like charts, hope you know how to read them ( I doubt ) the other one was to see the volume, here is another one to see how low is the Slow Stochastic

This joint venture with Gulf Coast Western was scheduled to start 11th Apr.
It appears that the sidetrack will commence from about 7000' leaving about 5500' to be drilled so news on this well could be hoped for within days (barring problems) 39.2 BCF target reserves.
Success here would give us a welcome boost.


Mustang Island
Offshore Sidetrack
EXECUTIVE SUMMARY
LOCATION: 10 miles east of Corpus Christi, TX off of Mustang Island,
Block 748-L (Texas State waters)
Water depth: 41 feet
OPPORTUNITY: A re-drill/sidetrack of Sterling Energys MU 748-L #1 to
capture under exploited reserves estimated to be as much as
39.2 BCF gas recoverable from the Marg tex 1 Sand.
Cumulative production from this sand from the MU 748-L #1
was 5.5 BCF gas. It had an initial flow rate of 12,161
MCFGPD on a 17/64 choke with FTP of 6524# from
perforations of 12,320-12,466 with additional perforations of
12,199-12,288 subsequently added. Similar flow rates are
anticipated from this sidetrack. Production facilities are present
and the well can be placed into production immediately upon
completion.
RESERVE POTENTIAL: 39.2 BCF
OBJECTIVES: Primary Objectives: Marg. Tex 1 Sand
PROPOSED TD: 12,385 TVD/12,500 MD
SEISMIC DATA: Mustang Island, phase 6, SEI Pre-Stack Time 3-D (reprocessed
2004)
RISK: Very low

Note the paragraph:
Production facilities are present
and the well can be placed into production immediately upon
completion.