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

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.

Business Financial Newswire
"Oil and gas company Sterling Energy says drilling for its Sangaw North exploration well in Kurdistan is likely to be delayed to the end of January due to heavy rain which has hampered construction. "

It's good that they are trying to act as planned. Very positive IMO.

Up 6.73% or 10.25p today - Are they begining to generate interest now that Kurdistan drilling is anticipated to begin any day soon.
They may rise more on breaking news of spudding in ?

Taking an old price of 4p for compasison = 2 for 9 at 1.3p plus extra available 1/2 share at 1.30p per share =
9 x 4p = 36p + 2 x 1.3p = 11 for 38.6p + 1/2 for .65p = 11.5 for 39.25p = 3.41p

Even more .. 3.41p consolidated at x 40 = 136.52p .. therefore up 18% from a pre Xmas price of 4 p ....

I like playing with numbers, it keeps me sain in an odd sort of way, but I think it will now rise steadily from 161.75 to ?? 235P in anticipation only of an oil find ???

That CSE in maths wasn't wasted was it.....lol the only figure i'm good at is
(**)
( . )
as close as I could get it...lol

On Selftrade 2 analysts have a target price of 280p for SEY. No reasons or timescale though, but sp nicely up today to 166p.

.

Wow! An impressive climb!!!

The stock was consolidated you idiot!!