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

What interest are they farming out CWMAM?

edit: have just seen the RNS. Does make sense with current day drilling costs.

symbol: SEY), an AIM listed independent oil & gas exploration and production company with interests in the Gulf of Mexico, Africa and the Middle East, announces that it has conditionally agreed to farmout an 18% interest in the Iris Marin Production Sharing Contract ('PSC'), offshore Gabon. Following the farmout, Sterling will retain a 32% interest in the PSC.




Sterling's interest in Iris Marin is held through two group companies. Sterling will reduce its interest in the PSC to 32% through the sale of its wholly owned subsidiary, Sterling Energy (Iris Marin) Limited, which holds an 18% interest in the PSC. As part of the conditional sale to an existing partner, Addax Petroleum Overseas Limited, Sterling has received US$3.3 million in cash and will, in respect of its remaining 32% interest, be carried for well costs on an 18% interest in up to two wells on the PSC. There is a monetary cap on the carry in any second well. Sterling will seek to transfer operatorship.




The ICM-1 exploration well on the Charlie prospect on Iris Marin is due to spud in late June. This well will test a target of 20-40 million barrels of oil. Sterling's initial estimates are that an 8 million barrels find could be commercial.




Graeme Thomson, Chief Executive of Sterling, said:

'This farmout reaffirms our strategy of managing our exploration portfolio risk whilst retaining a material interest in the upside potential. In essence, this deal more than covers our expected share of costs of the Charlie exploration well and, in the event of success, for over half of our costs in any subsequent well. This deal also materially improves our near-term cash flow.'

For optomistic and sey fans.

I was expecting this to be above 20p by the end of this month!!!

me to

I wasn't!

New article, click HERE

SEY at 3.65p or so....a few years ago this was 15p plus....and now a placing...but at 2p....that will pull the sp down even more...2p to 3.65p...that's a big difference !. Their make or break time will be the Iraq drilling with AXC next year !.

Even if Iraq doesn't come good after the US sale SEY will still have some producing assets. Too much debt against a falling commodity price is the current problem.

This is another one that has fallen over the cliff.
Who is to say that thje price of oil will not continue to fall.
After all ,was it not at ludicrously high levels!The justification for which is hard to fathom.

how much bottle of water? 80p or so..........in that case, oil is cheap IMHO. all the technicalties, plus political issues make it very cheap and its running out in next decade.

Water will not run out that quick, ridiculous to spread such nonsense.

Back to Sterling, this is on a knife edge IMO.

If the US asset sale stalls then things may go from worse to terminal come spring next year. The interims make it plain enough how close they have come recently, if you are brave then try to bottom pick it, but realize that even if Sangaw comes good, it will only put 7p on the share price after this recent farm out/dilution.

Madagascar may be on later next year, Mauritania may produce more oil from Chinguetti, will that be enough and in time?

(I have no position now after trading here and there and wont be buying anymore)

A great deal of buying in this one today,but look at the price!
Any prospects for a recovery on the horizon?
The price of oil should stabilize around these levels.

Anyway back in this yet being so it's dropped like stone for no real reason that I can see. Hs it hit the bottom.

Ted the problem here is that they will probably be forced into a fire sale if buyers can't be found.

I look back at First Africa Oil where I also held for a while, the same could be happening here.

The large shareholders will take a paper loss on the chin if they think they can get a better management in to do the best for the assets.

I note EVO and Gartmore are trading around the 4p mark which does not fill me with confidence for any better than that either in cash or in paper, but holding the few I do bought for just over 2p having said I would not do it again, I did, I will hope for a better outcome later on.

EVO are the house broker so why should they do this if they realistically expect a better share price to come from any offer for the company?

As I have already said concerning them, they have their own agenda which may not necessarily coincide with ours.

Has it hit bottom?

I would hope so but with FAO it went for a smidgen of it's former share price to Bowleven as an example.

As always dyor, I am but a prat, lol.

Interim report says - "sale of USA assets should complete by end Nov early Dec" .
Why do directors not inform us of their progress or problems, as no news issued ?
What are shareholders to believe with this disappointing Co. ?
It seems they do not want to issue news and progress reports. Why is that ?

I have even emailed SEY information offices in UK and USA, asking for a progress report, about USA sale, but both ignored my emails ! What else can shareholders do ? Let me know.

no news is def bad news in this instance

Was supposed to be a sale of US assets before before Christmas and the news famine does back up yours and my thoughts.

Still a couple of days to go however the price of gas and oil is not helping them even though some oil is hedged, the gas isn't!

No position currently but an avid follower of the fortunes of this company having once held a shed load.

Will everybody please do me a favour and send emails to -

info@sterlingenergyuk.com and also to info@sterlingenergyusa.com
asking for an up date of planned USA asset sale.

If they receive several emails we may shake them to give
some answers - either bad or good

Bob at email - robert.kirkham10@virgin.net