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

One has to be very apprehensive in the short term about this Company.On its current share price of 24.75p the market valuation is 347 million. Infinitesimal EPS of 0.22p per share and a P/E of 111. The agreement with the Mauritania authorities on Chinquetti and subsequent fields may pay off in the longer term but in my view there is better value on offer.

churchill2,

Ok fair enough, you clearly don't hold as you feel "there is better value on offer", but unlike you, as a holder, I personally don't feel "aprehensive" about SEY, I have held since 9p, and am used to the ups and down along the way, and there have been quite a few to test the faith!

I have to admit I would be interested to know whether the newspaper report re the Mauritanian govt. seeking to renegotiate is true or not. Until it's confirmed officially, I am treating it as another rumour.

The AGM is a week or so away, so we may hear more then, otherwise I'm sure questions will be asked if they haven't announced before!

I think the focus has been totally on Chinguetti, but SEY have other producing assets in the GOM, where both production and price should increase this year, hurricane permitting of course.

And then we have the exploration prospects, the best of which is probably Madagascar, a potentially huge field,( if all goes well with the drill!) but Exxon didn't JV in without a reason IMO.

"better value on offer"?

Maybe, but I'm staying in SEY for the BATR, as some are already over two years, and others fast approaching.

Thanks for your thoughts, and whilst I don't agree, opposing views make a market, so I wish you luck in your choices.

Andy ... what is BATR other than something in which you dip fish? ...... This is one of the high(ish) risk stocks I mentioned in my post on SUB

Sterling Energy should gain if there is any problem in the Persian Gulf.

ahoj

at least every $ increase will offset to some extent the loss of production...

cynic,

Business asset taper relief, available to holders of AIM listed stocks for over one or two years, reduces your CGT liability to 30 and 10%.

Thanks Andy ..... I have an accountant to look after these things so trust he is fully au fait ...... meanwhile will use my BATR for Yorkshire Pud!

Cynic,

:-)

Mauritania and Woodside sign oil deal
http://www.abc.net.au/news/newsitems/200606/s1656884.htm

According to official sources, the agreement states "that if the price of crude goes over $US55, Mauritania will receive an additional profit of 5 per cent of that surplus value"

If the rumour of renegotiation is true it may be along similiar lines

chemkid,

Well given the extra revenue SEY would be receiving, given the current high price, I think 5% would be a fair deal for both sides.

chemkid

Thanks for that.

has put my mind at rest a bit

regards

I would say that 5% of any extra over $55 is a very good deal for Woodside. Cheap at twice the price!

so, for every $15 ($70 - $55 = $15) they get 75 cent per barrel. How many barrels a day do they sell?

IT SHOULD BE ABOUT 70K BARRELS PER DAY AND INCREASING TO 300K WITHIN NEXT 3 YEARS IF I AM CORRECT!

$52k a day.. about $1.5M a day more than expected for Sey. not bad NM

http://www.smh.com.au/news/business/chinguetti-partners-cough-up/2006/06/07/1149359817768.html

confirmation that the deal was signed yesterday.

Sorry R88, but I question the validity of your post (no reflection on you!), for there is neither an RNS, which would be manadatory, nor even any reflection in sp, which would surely be sharply upwards.

Fair point Cynic, it is somewhat strange that nothing is released from SEY?? Are they binding their time?

I do not think the authorites allow such luxury!

Why an RNS

the deal involved the Goverment not SEY. Any revenue would not be SEY`s but the Goverment in Tax????

All this means is that the terms of the loan may advance.

Just my take

regards