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

Master RSI - Thanks for the interesting charts - well done.
Addax may be spudding in at Kurdistan for SEY during this last quarter, so this will create some interest and price increase action. Addax have experience of high pressure well drilling.
Also SEY should have their half yearly report out at the end of this month, with some comments from the new directors. The proposed rights issue due in November is now well known about and should not be a drag on the share price. I,m very hopeful of a good rise soon.

The rights issue is at 1.3p. It must logically be a drag on the sp as it is a dilution at a discount price.

HARRYCAT -
How do you know it will be at 1.3p ?? That was the price of the previous fund raising - we know. With a rights issue one can sell the rights if you do not wish to take them up. A rights issue is not necessarily a "drag on" the market - it does not mean the price will drop to ? 1.3p or thereabouts, as the rights themselves will have a value / price. I suspect that on official notice of the rights issue SEY may fall back a little for a few days, but nothing too serious.
Also I have read that after a rights issue shares usually rise, due to the potential use of the new funds. Do you not agree ??

rekirkham,
it is called theoretical ex-rights price. if i remember correctly it was the RI will be 2/5. x-r price would be around 1.6p-1.8p. i think it'll depand on the cum rights price at the time.
looked the buy volumes for the past 2 days.it looks like investors are hungry for this one. high risk-high reward

HARRYCAT is right - they intend an "open offer" in November to raise 20.6 million at the placing price which was 1.3p at 2 for 9.
So if the share price is 4p in November it theoretically works out as 2 X 1.3p = 2.6p, 9 X 4p = 36p, 2.6p + 36p = 38.6p, 38.6p / 11 shares in total = 3.51p ex rights price. If you take up the open offer, or if they credit us with the premium some how, then nobody is a looser. Am I right or wrong ???

MAY I SAY

Open offers do not go "cum" so are not being diluted on the share price opening price when going X, only Right Issue do that. But being at a such large discount then, most likely the MMs will marked down the stock.

But one must buy the open offer otherwise one gets nothing for them, it goes to the underwriters , naturally if there is a premium, but being at a such discounted price it shoud

Spread 3.83 / 3.87p +0.16p

KM (at Evolution) has said this week about SEY:

Management changes include bringing in Alastair Beardsall as executive chairman. Alastair has established a highly successful track record at Emerald Energy. He brings with him a reputation for prudent cash and operational management and exploration success both of which are required at Sterling.

Kurdistan is one of the last areas in the world where very large fields remain undrilled due to past political issues and, with expanding infrastructure, any discovery here could be transformational for Sterling shareholders. Sterling has other interesting prospects in Cameroon and Madagascar which could add substantial upside in 2010/11, but short term, investors should regard the imminent drilling in Kurdistan as one of the most attractive low risk/high reward opportunities in the E&P sector in the next six months.

Prior to Kurdistan drilling we set an initial target price of 6p/share, but recognise that the success case is several times this number.

Indicators bouncing
Slow Stochastic from bottom
RSI from 50
and the MACD on the turn from under 0

Volume very high next day when share price reached bottom positive

So, after all that debate are we agreed that the sp of SEY is likely to decrease when the open offer is launched, thus buying & holding now is of dubious benefit, except if you wish to increase your holding to benefit from a greater takeup of the offer (i.e. 2 for every 9)?

off topic but ..........if spare cash

another share also bouncing from Fibonacci 81.2% is VOG and is doing nicely also.

HARRYCAT -
The way I see it, ( I could be wrong ). If one has one million shares, then at 2 for 9 you are entitled to 222,222 shares at 1.3p = 2,888.
Compare that to the current price of one million shares at 4p = 40,000. and 2,888 is not a mind blowing amount.
I agree with Master RSI that the share price may fall marginally at this "offer" time because of the optional liability where some may decide to sell, and also there could be a little selling a few days later where people who have bought may sell a few to recoup the additional outlay. After this is out of the way I think they should recover. Personally I do not think we are talking about a major price change, and more importantly at November time there may be more price and excitement built into the share price about Kurdistan. Personally I am not worried about the "offer".
I wonder what MasterRSI thinks ? Does this add to our confusion ?

Trying to crack 3.9p today maybe Monday will succeed.

rekirkham

we are still maybe 2 month away, + 3 weeks of option to take it up, so a bit too far away to speculate for me, apart from what i said earlier.

Fully loaded here its got the pi imagination

I reckon its on a winning streak here andonce 4p is reached it will head for 5p in a short time imo.

RNS broker upgrade spudding in Kurdistan late December drilling time 150 days.

So drilling completion approx early may 2010? (Assuming no problems)

lets hope like GKP they strike oil on the way down to target depth.

Having read the following, the risk factor is a little higher than I would have liked, but maybe less risky than usual as I thought the %age strike rate for most drillers was around 15%:
"Business Financial Newswire
Sterling Energy says preparations are continuing for the drilling of its first exploration well on the Sangaw North licence in Kurdistan. The well is planned to spud in late Q4 2009.

An independent review of the prospect estimates the unrisked prospective resources at 804mmbbl, with a 27% chance of success. "

Order book is getting stronger on the bid side, should be ready to go over 4p soon