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

Very bullish RNS, all doubts dispelled.

Sterling Energy PLC
27 February 2006



27 February 2006

STERLING ENERGY PLC
('Sterling' or 'the Company')


FIRST OIL FROM CHINGUETTI FIELD
OFFSHORE MAURITANIA



Sterling Energy, the AIM listed (symbol: SEY) independent oil & gas exploration
and production company, today announces that crude oil production has begun from
the Chinguetti oilfield, in PSC B offshore Mauritania. This has been achieved in
line with the production schedule issued by Sterling and its partners.


The Chinguetti development consists of 6 production wells tied in to the Berge
Helene Floating Production Storage and Offtake (FPSO) vessel. Production is
expected to rise to a plateau of 75,000 bopd in 2Q 2006. The field has
estimated proven and probable reserve of 140mmbo. The original discovery was
made in 2001; since then, the partners have invested in the region of 400
million in the successful development of the field.


Sterling has two economic interests in the Chinguetti development. The first is
through the Funding Agreement with the Mauritanian Government, signed in
November 2004, which enabled the Government to directly participate in the
Chinguetti development through the recently renamed Societe Mauritanienne des
Hydrocarbures (SMH). In return for funding the 12% SMH share, Sterling will
gain an approximate 8% economic interest in the field's gross production.
Sterling is proud to have worked closely with SMH to develop Mauritania's first
oil field.


The second interest is through a farm-in agreement signed with Premier Oil PLC
in 2003 covering PSC A and PSC B, under which each net attributable barrel of
Chinguetti produced, equivalent to 5.28% of the field's production, is subject
to a sliding scale royalty at a rate linked to the realised oil price. At an
oil price in the band $58 - $61, the royalty payment would currently be around
$7.25 per barrel.


Sterling anticipates development announcements to be made in the next 6 months
on the Tevet and Oualata (Tiof) discoveries in PSC B, and exploration drilling
continues in both PSC B and PSC A, in which Sterling has royalty rights and
discovery bonus entitlements.


Sterling expects to announce its preliminary results for the year ended 31
December 2005 in late April, 2006.


Harry Wilson, Chief Executive of Sterling Energy Plc, said:


'We are delighted by the news that Chinguetti has produced its first oil and
within the time schedule outlined last year. This outcome endorses Sterling's
innovative Funding Agreement with the Mauritanian Government signed in November
2004, which could pave the way for similar agreements in the future. The
substantial increase in our cash flow that will now follow from the start of
production in Chinguetti offers us many opportunities to invest in significant
new oil & gas projects.'

Hardman's sp didn't move a muscle in Oz overnight. Let's hope the response for SEY is somewhat less muted.

Depends on what is thought to be in the sp?

However, seen this with Oz recently with AZA(ael.L), have a look at thge sp difference, and they ahve to have different rules to London.

In any event, I am not too worried as Hardman did at least go up over 2% on over 5 million traded, which is an acknowledgement.

Taking the SMH royalty at 8% of $25pb = $2.00pb at the well head and the farm-in royalty at $7.25pb on 75kbpd, X 365 days at $/1.75 gives an annual net revenue of 144.7m p.a. or EPS of about 10p. How much of this is already in Friday's closing price of 23.25p?

sd

Stockie - I would guess at not much, or why would Sterling feel the need to mention it?

EVO target is oft quoted at 32p plus depending on what note the writer has seen.

SWW, Stockdog,

I agree with SWW, not much, otherwise they wouldn't have mentioned it in the RNS, IMO.

I saw the RNS as very positive personally, mentioned Tiof and Banda too!

25p is more or less where I hoped it would go to, there seems some decent buying volume, so let's hope we can establish a base at this level.

Another RNS
AMVESCAP topped up on Friday with another 5.75 million shares. They now hold 24% of the company. So who bought the rest on Friday then? Can we expect another RNS?

Pondy,

Maybe, slightly disappointed with the price today, but not surprised.

Amevscap are the major players in any takeover approach now, I can't imagine SEY are too happy at the size of their stake.

Bit of a 'Brown Ale' day then. Ho hum.... hopes of instant riches beyond the dreams of avarice postponed again.
Always the AMVESCAP stake to dream about. I do wonder who bought the 40 million shares on Friday then. 40 million is a declarable stake so there should be an RNS.

I feel this was a very poor showing today, especially given some of the rocketing SP's we've seen from some SEY peers over the last year or so. I really can't understand why. I've been a holder from 7p so am in a good position but this really should be flying now.

ola

i have been a bit busy of late to participate in the thread so wanted to say hi.

Hi.

nice rise but i agree with you all that this is an underperformer. 30p should be a hop skip and a jump from here...

had a simply scrumptious lunch at itsu...can't get enough of the place.

rgds
PT

BACK OF ENVELOPE STUFF:

a i right in saying that SEY is looking at revenues of about US$141 million a year???? that is based on 5.28% of the Premier stuff plus 8% of its own government lined contract....

if so this thing is the WRONG price in a huge way! i would appreciate your thoughts....

Your back of the............ you are using what? $60 per barrel? (He says guessing)

Safer to use the OPEC basket price of $45, and then the answer would be yes, gross.

Nice to see you here prop, I began to think you didn't love me any more.....xxx

Then again name changiong etc, has caused a bit of a kerfuddle.

it threw me totally off to tell the truth...it was something like as extreme as your best friend having a sex change...it was just wierd old boy!

i was using 60 but even at 45 it is still over US$100 million a year! then they are trading on a theoretic 6x next year????? this really could be a quid by xmas!

speak later and its good to be back xx

prop ,thats funny I was thinking about your 1 by Xmas only this morning, although it may have been tongue-in-cheek, it could very well be...

Now we are really dreaming! This is SEY we are talking about. 50p would be stretching it a bit. Unless of course Exxon turn up trumps for us in Madagascar.....

All.

I have had really good feeling about this at the moment.

The key is the Madagascar licenses, Exxon are to drill this year as far as I can remeber, one find who knows?

As I have said before though, why would Exxon want to freely carry Sterling when they can have it all themselves for peanuts?

The Vanco licence next door has got them all fired up, they only have a small proportion of that one.

Quid by Christmas?

It would be nice, I actually see Mauritania as the interesting side play and Madagascar as the meat in the sandwich.

Quid by Christmas boll*cks. As I stated earlier today I've held SEY since they were 7p and had to "endure" the 1 by Christmas routine from posters for months and months on end. And then a small spate of less-than-good news came SEY's way last year and most of the 1 by Christmas brigade bailed out! Well it was never a bail-out situation but by the same token, and unless they break with all tradition, it will never be a 1 by anytime situation. And I'm a holder, not a de-ramper. If they do make a 1 I'll have multiplied my original stake by 14 so I'd be delirious.

Tap just turned on - give it a chance, vultures gathering
Looks OK to me

Why queen1.

Dont hold back will you?

Patron Saint is what you are, and there is no mistake!

By the way where have you been in all that time?

Lost your sense of humour?

Ps. dont swear even in a veiled way, it does you no credit.

Actually shows a lack of intelligence, except I think I know better than that?

If you dont like what you read, then squelch me, I dont think I will care and it really wont matter either.