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

Evolution says 6p and if they hit oil, many times that.

no wonder that the share have been a bit weak lately .........


Westmount disposes of 15m Sterling Energy shares

Westmount Energy says that it has disposed of 15m shares in Sterling Energy at a price opf 4.7p each.

The Company says that it now holds 65m shares in Sterling Energy and 5.1m shares in Desire Petroleum.

The Westmount Board comments that the next six months should be an exciting time for Sterling and Desire with drilling expected to commence in Kurdistan on Sterling's acreage and the long awaited rig will in November commence its voyage to the Falkland islands with drilling planned by Desire for early 2010.

so why are they selling?

Precisely !....at a guess : probably profit taking with free ride on a certain amount of stock and now capital in hand.

I am talking about ME..

Just bought in, going to take the gamble on Sangaw. Impressed Mr Denis O'Brien EX Deputy Governor Bank of Ireland has a 14% interest in the stock.

http://www.londonstockexchange.com/exchange/prices-and-news/news/market-news/market-news-detail.html?announcementId=10183461

Must be Rights Issue time for these boys very soon?

"Further to the Placing undertaken in September 2009 that raised 62.5 million (gross) at 1.3 pence per Ordinary Share, the Board stated it was Sterling's intention to undertake an Open Offer to raise approximately 20.6 million at the September Placing Price of 1.3 pence per Ordinary Share, which will give Shareholders the opportunity to subscribe for two new Ordinary Shares for every nine existing Ordinary Shares held at the Record Date of 8 September 2009.


The documentation for the Open Offer, which will include an excess application facility, is currently being finalised with Sterling's advisers and the UKLA. Sterling intends to launch the Open Offer following the sale of its USA assets, announced on 20 October 2009. The sale is expected to complete in early December, and the Company expects to close the Open Offer prior to the year end."

Sterling (symbol: SEY) is pleased to provide the following update on its activities:

Kurdistan- Sangaw North PSC.
"In the Sterling operated Sangaw North block (53.33% WI), the drilling rig is now in transit to the well location and the well is scheduled to start drilling in the second half of December. The planned total depth of the well is 3,660m, with an option to drill to 4,160m.

The well will target several prospective reservoirs in the Cretaceous. An independent review of the Sangaw North prospect undertaken by RISC (UK) Ltd gives a best estimate of gross prospective oil resources for the Cretaceous interval of 804 million barrels. If the well is drilled to 4,160m it will also test potentially prospective reservoirs within the Jurassic.

Sale of USA business
The sale of the Company's USA business is progressing well and is expected to be completed in early December. The proceeds of the sale, after costs, will be used to repay the outstanding bank debt and the remainder will be used as working capital.

Proposed Open Offer to Shareholders
The Company is completing the prospectus for the Open Offer and proposes to post the document after the sale of the USA business is completed."

Sterling (AIM: SEY) is pleased to announce that it has today completed the sale of its USA business to the Atinum Group from Korea. The Company's outstanding bank debt has been repaid in full. The sale process was handled by BMO Capital Markets

Terms of Sale
The initial sale consideration was $90 million with an effective date of 1 April 2009 and on completion was adjusted for intra-Group cash movements since 1 April 2009 and other costs.

In addition to the initial consideration, there is a three year 'upside sharing agreement', under which Sterling is entitled to a 40% share of the annual excess net production proceeds (arising from the disposed USA business) if the average realised oil price exceeds $90 per barrel and/or the realised gas price exceeds $9 per thousand cubic feet in any of the years 2010-2012.

Use of Sale Proceeds
After adjusting for cash received from the USA business since 1 April 2009 and the various bank and other expenses associated with the sale, Sterling's net consideration is $78.9 million on completion, of which $8.3 million is held in escrow pending USA tax clearances; Sterling expects these clearances will be obtained within the next 180 days and will result in the receipt of the full escrow amount.

All of Sterling's outstanding bank debt of US$71.6 million has been repaid; the Company is now debt free. Sterling's cash balance is currently $73.4 million, including the US$8.3 million held in escrow."

RNS proposed share consolidation 1 for 40 after latest capital raising.

"Sterling Energy entitlement shares offered at a rate of 2 entitlements for every 9 ordinary shares held. These will entitle you to purchase 1 new share for every 1 entitlement held at an issue price of 1.3 pence per new share."

Business Financial Newswire
"Sterling Energy has received a 97.7% take-up for its open offer, announced along with a placing on December 4 at 1.3p per share.

The company is proposing a 1 for 40 share consolidation."

Harry what usually happens to the sp after shares are consolidated?

It will be a fine looking short :)

I suppose in theory, nothing should happen. You will have less shares, but the individual value will go up, but it's sometimes seen as a bit of a smoke & mirrors exercise & there is likely to be a re-adjustment of the sp! Pth probably correct.

I think I did post somethong along similar lines Harry when the initial fund raising was mooted and predicted a share consolidation at some point in the future.

Nice to see SEY is up 3624% today! ;o)

mmmmmmm, 40 x their closing price of 3.92 last night equates to 156.8p.
2517

Market cap over 311m..........

Thats an awful lot of oil they need to find @$1.47 per barrel in Kurdistan, should be easy if results elsewhere are anything to go by.

A billion barrel field will double your money and a bit more.........

Could be worth a punt if only they could sell any find!

Currently the Iraq Oil Minister says no........... and he also says he won't change his mind Kurdistan licenses are illegal and yes we have heard all that before.

One to watch nevertheless.