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

Ted the problem here is that they will probably be forced into a fire sale if buyers can't be found.

I look back at First Africa Oil where I also held for a while, the same could be happening here.

The large shareholders will take a paper loss on the chin if they think they can get a better management in to do the best for the assets.

I note EVO and Gartmore are trading around the 4p mark which does not fill me with confidence for any better than that either in cash or in paper, but holding the few I do bought for just over 2p having said I would not do it again, I did, I will hope for a better outcome later on.

EVO are the house broker so why should they do this if they realistically expect a better share price to come from any offer for the company?

As I have already said concerning them, they have their own agenda which may not necessarily coincide with ours.

Has it hit bottom?

I would hope so but with FAO it went for a smidgen of it's former share price to Bowleven as an example.

As always dyor, I am but a prat, lol.

Interim report says - "sale of USA assets should complete by end Nov early Dec" .
Why do directors not inform us of their progress or problems, as no news issued ?
What are shareholders to believe with this disappointing Co. ?
It seems they do not want to issue news and progress reports. Why is that ?

I have even emailed SEY information offices in UK and USA, asking for a progress report, about USA sale, but both ignored my emails ! What else can shareholders do ? Let me know.

no news is def bad news in this instance

Was supposed to be a sale of US assets before before Christmas and the news famine does back up yours and my thoughts.

Still a couple of days to go however the price of gas and oil is not helping them even though some oil is hedged, the gas isn't!

No position currently but an avid follower of the fortunes of this company having once held a shed load.

Will everybody please do me a favour and send emails to -

info@sterlingenergyuk.com and also to info@sterlingenergyusa.com
asking for an up date of planned USA asset sale.

If they receive several emails we may shake them to give
some answers - either bad or good

Bob at email - robert.kirkham10@virgin.net

if there was good news, you would have had it soon enough

No information of the possible sale of US assets and I would suggest the first credit review by the Company's Bankers is now underway as indicated in the September placing document.

Details highlighted below.

http://www.sterlingenergyplc.com/uploads/sterlingenergyplacingannouncement30sep08final.pdf

"6. Working capital
In the opinion of the Directors and assuming the completion of the Placing, the working capital available to the Group is sufficient for the Groups present requirements, that is for at least 12 months following Admission. However, in the event that Shareholders do not approve the Resolution, the Placing will not proceed and the Board will need to consider alternative sources of funding, which may or may not be forthcoming.

Following the recent Borrowing Base review, further debt repayments of US$7m and US$6m are scheduled for February 2009 and August 2009 respectively under the Borrowing Base Facility Agreement. In January 2009 and July 2009, the Companys bankers will undertake a further review of the Companys Borrowing Base at which points the Borrowing Base may be increased or, in the event that the Company does not perform in line with expectations, the Companys bankers may seek to further reduce the Borrowing Base requiring additional payments from the Company. Any re-determination of the Borrowing Base will be based on
the Company's bankers determination of certain economic and technical assumptions. However, in the event that the Company is able to achieve a successful sale of its US assets the Company expects to repay the outstanding debt under its Debt Facilities and the Company expects to have a surplus of cash available to fund its working capital requirements.

Shareholders should be aware that in the event that the Companys Borrowing Base is further reduced by its bankers or the Boards revenue expectations are not met, the Company may require additional funding sooner than anticipated, which may or may not be forthcoming." (Their bold print)

poo - how's it going???? i cant beklieve this thread is still alive!!!!

are you still invested?

Hi prop.

No, morbid interest now really but I have been in and out on a few trades, and may again, but I only hold for a day or so, but none in recent history.

As the days pass with no update on the sale of the US assets, the more I think they are fooked.

What are you up to lately?

I am playing mainly in Uganda E&P's and done really well having banked some last year.

If one looks at Gulf Keystone latest progress reports for Kurdistan, it is shown that Sterling acreage is next to Heritage acreage, or very near, and on the Kirkuk oil field side. It appears that Heritage Oil ( HOIL ) may have a major oil find on their acreage, being sweet light crude and near an existing export pipe line. They say will take the next few weeks to do tests etc. Heritage is up 10% today and has been rising for the past three months.

SEY say they will be drilling in Kurdistan (Addax rig) towards the end of this year, and seismic surveys are very encouraging.

What price SEY if they are lucky in a year - 30p / 40p / 50p from todays price of 1.70p ?

SEY is well worth a punt, and am surprised it has not gone up with Heritage news.

because SEY has found nothing and will not be drilling for several months and who is to say they will find anything at all

To Cynic -
I suggest you forget share trading as you seem not to know much about it, and are very negative towards all MoneyAM posting threads and you want to treat them as a joke.

I told you Sterling Energy was on the way up because of Kurdistan - Heritage Oil, and Keystone Oil. If you have not bought, who is the joker now ?

Please do not waste my time by replying to any more of my threads.

This one continues to creep up, am wondering if theres something brewing????

Volume is rising again today and offer holds at 1.90p despite large buys,
some of the investors are paying 1.93 and 1.96p well over the offer price 1.90p

SEY is short of big cash, as they have not sold their Gulf interests as they wanted. This does not matter too much, as they have farmed out a share of Kurdistan to Addax in return for reimbursement of siesmic work and the cost of drilling the first well - SEY is still left with 53.33%. - pity it is not more like 75% - but still OK.
Korean National Oil Co have "a back-in interest" of 25%.

I understand the SEY Kurdistan block is about 492 sq. kilometers, with several oil seepages on the surface. It is about one third the size of the Addax and the Hertiage blocks, but closer to the Kirkuk oil field. The block is said to be "on trend" with Addax Taq Taq oil field, and only about 50 kilometers from the giant Kirkuk sweet light oil field. It does looks very encouraging.

If SEY run out of cash in the future, it does not matter as their Kurdistan 53.33 % interest could be worth a fortune in its own right, and neighbours Addax / Heritage / Korean National Oil, may want to buy in. The block will have a value even if only the first well is drilled by Addax !

How does one value SEY ?? -- with a lot of guess work and a prayer ?

SEY market capitalisation is 40m at present, Heritage market capitalisation is 900m at present, this is known.
SEY have some small interests in Mauritania and large acerage onshore in the Gulf mainly for gas, and perhaps are drilling with Exxon offshore Madagascar this year ? Heritage are big in Uganda with Tullow oil and have other interests.
Heritage market capitalisation has gone up by about 300 m since the news about Kurdistan broke. Will SEY market capitalisation go up by - say 120 m for Kurdistan or 180 when market sentiment improves ? It's a guess.

Say a total of 160 m or somewhere around 7.2p per share by about the end of this year ?
- 400 % gain because of high gearing with present small market capitalisation ?

Refer also to Gulf Keystone " Investor Presentation Feb 2009" page 21 for picture of SEY block. As I see it - one needs to be a little patient with SEY and wait until later in this year, but a find in Kurdistan will transform things.

I have nearly one million SEY shares, bought before the crash and am holding on -

rekirkham Accountant and Barclays deZote Wedd Investment Analyst in 1980's .

rekirkham, were you any good at it?

Only I know a retired investment banker who has lost a packet of his own cash during the fiasco of last year, just would not listen to me a novice, in comparison.

And then there is this to consider.

http://www.ft.com/cms/s/0/285e9c8c-2d43-11de-8710-00144feabd...


"US producers run low on energy to beat recession

...In recent months, there have been eight announcements of forced sales, bankruptcy filings and notices of possible filings, with the most recent warning coming from Edge Petroleum in March.

These are not immaterial companies: 56 per cent of US natural gas and 59 per cent of US oil is produced from companies with fewer than 20 employees, according to the Independent Petroleum Association of America, which has 5,000 members...

...The number of land rigs operating in the US has fallen by 1,000, or 48 per cent, since the October 2008 peak, he said - the steepest drop, on a percentage basis, since the 1980s oil crisis.

"We have seen 20,000 employees disappear in the last 90 days," Mr Mason said.

Texas, which produces nearly one third of US natural gas, and employs almost half the workers in the US oil and gas extraction industry, has just gone into recession."

I would guess that spells the end of any thought about selling the US assets."

Plus of course the unknown state of the banking facility which is why I have posted the above item here.

Comments?

Poo Bear - I am not always right, but hope to be right slightly more often than being wrong. Thanks for the information - most interesting about the USA.
SEY Annual Report is due out about 1 May - in about one week, and this should throw some light on the situation. Good luck, we all need it.

Good news, they have a back waiver on the loan RNS issued, no offence meant rekirkham.

Let there be light!

SEY on the rise again, it hit 2.50 yesterday hope it goes on up. Good volume today, slow but sure.