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

sector malaise....hold your water boys and girls!

Right about the CO2.

And methane.

I needt to be bottled and pressurised.

Can't stay, good to see some thread action here.

Reasons to be cheerful - Part One

Hi all. Remember this email from last June approximately?

Extract sent by Harry Wilson to me.

Firstly, we receive a discovery bonus from Premier of $2m for each new discovery over 50 million barrels declared commercial there are presently 3 potential field developments where this might apply Tiof, Tevet & Banda. Secondly, we receive from Premier a sliding scale royalty payment on 6% of the gross production taken out of the license (this will be reduced by the government back-in where we also have an interest). By way of example, the sliding scale royalty is $2.75 per barrel when oil price is $28 31 per barrel and $4.75 per barrel when oil price is $40 43 per barrel. This royalty payment comes to us without any costs apart from tax. So it is clearly in Sterlings interests to see as much drilling by the partners as possible in the license. I hope this is clear."

(The remainder of the mail asked after the wife and family plus a dinner invitation if I recall, or was that Tony Blair's?)

The 6% Premier Royalty payment mechanism is detailed below :

Oil Price / Royalty

< $16 $0.25
$16 - $19 $0.75
$25 - $28 $2.25
$34 - $37 $3.75
$43 - $46 $5.25


For every $3/bbl change in oil price, the royalty changes by $0.50/bbl. There is also a small esculation of the prices with time."

$49 = $5.75
$52 = $6.25
$55 = $6.75
$58 = $7.25
$62 = $7.75

From this deal alone assuming 75000 barrels of oil a day ( Hardman says up to 75000 b/d) for 365 days of the year assuming $45 per barrel which is OPEC's stated fair price I believe.............

so :- say it only produces an avarage of 50000 barrels per day,

50000 barrels at $5.25 for 365 days of the year, add the same again for the Mauritanian Government deal, (which is a guess, we have been told it is similar in structure to the Premier deal on royalties), how much does that make for this deal alone?

Now do the same calculations for 75000, (ever the optimist), and what do you get?

So, why do you think nearly 40% of this stock is owned by hedge funds and institutions?

Tell me I dont have a handle on this deal and explain why please.

You do have a giant crank SWW (allegedly), on SEY, just as Fundamentalist did a few years ago with DNX.

Keep the faith people. Look what happened to Brent Walker and Polly Peck (sorry - bad examples. Doh)

Nam

BP is upgraded today.

SWW - OK, OK, OK! I'm back in at 16.00p - too damn slow to get the 15.88 by about 10 secs. Still who's counting. Made a penny turn on selling out at 17.00p - every little helps.

sd

Namreh

What do you mean by having a giant crank?

You had a handle on DNX and I suspect it paid off for you. If you are a Cockney at heart I apologise as I have just realised that Giant Crank rhymes with Barclays Bank (with grateful thanks to the late Kenneth Williams).

Hope neither you nor SWW were offended by the doobel.

Happy hunting.

Nam

nam

yes a cockney at heart lol and yes DNX did pay off for me - and still is :-) - not offended at all just didnt understand what you meant.

Still watching SEY with a view to buying in again

Thanks Fundy.

Ditto, 15p ish looks attractive. I remember DNX dipping a few months before the consolidation when I got in at just the right time. Perhaps history will repeat itself. Everything crossed.

Nam

I feel kind of reassured that you are back in stockdog.

Someone sold 2.5M!!
Why are some of the fund managers happy to sell at lows?

They sold Marconi at 318 last week, it's 375 now.
They sold QXL at 215 over a year ago, it's 6500p now.
They sold CW. at 106 last week, it's 112 now
They sold DGO 140 last week, it's 150p now

nam

yep i too remember buying DNX pre consolidation for approx 14-15p which equates to 210-225p in current price terms - now over 800p - that would be nice here but only once im back in!!!!!

Precisely Fundy.

Nam

goal - no good one blind man following another over the cliff. NB. SWW may have a big crank, but his eye sight's terrible!

sd

Sd. Yes but sense you have bought back the price has moved up...

SD yes that's because his palms are hairy.

Nam

Oi you lot, don't talk about me as if I'm not here, just because I wasn't.

Well well, intersting trades again today.

The joys of being a holder of this stock.

No idea what the heck is going on!

Nam, thanks, but I'm not that good.

I am grasping trying to get a hold really.

Berge Helene is metaphorically around the corner........ just be good to know where we are and try to fathom out the lastest fall, but before we did it rose again.

SWW - such modesty. Speak on the morrow. Chin chin.

Nam

trading Oz again and bored! bloody mkt doesn't open until 1 am!