just a theory ..., page-63

re: just a theory ... cunning sey Hi ellroy,

I understand the Government buy in was over the whole EEA which includes Tevet, a couple of leads and the edge of Banda. You can see the EEA outlined on page 11 of the 2004 annual.
The JV should be looking at securing extensions over current PSC's IMHO. Perhaps they will use Tiof in this way. Say waive the 150% in exchange for extended PSC terms or make the 150% payable from production revenue, etc. We can speculate all day as there are many options open IMHO! SEY pulled a very cunning move with the Chinguetti buy in as they did with the FOG takeover. The beauty with Sterling is FOG made a deal with Premier before the take over offer came from SEY. So basically SEY don't pay a cent for their other Mauritanian interests as PMO foot all the bills to earn their interest.

MAURITANIAN GOVERNMENT EXERCISES RIGHT TO
PARTICIPATE IN THE CHINGUETTI OIL FIELD

Hardman Resources Ltd (“Hardman”) is pleased to report that the Government of the Islamic Republic of Mauritania has exercised its right to participate in the Chinguetti Oil Field development, offshore Mauritania. The Government’s participation will comprise a 12 equity position in the Exploitation Perimeter which was granted in May 2004 under the terms of the Production Sharing Contract (PSC) for Area B by way of an Exclusive Exploitation Authorisation (EEA). The Exploitation Perimeter was granted over an area including the Chinguetti Oil Field. The effective date of the Government’s participation is 9 November 2004.
The interest of the Government of the Islamic Republic of Mauritania in the Chinguetti Oil Field will be held by Groupe Projet Chinguetti, an entity set up by the Government for this purpose.


Here's a thread I started on SEY in May.

http://www.hotcopper.com.au/post_thread.asp?fid=1&tid=104692#287551

Subject aim listed sey - hardmano, blackscorp, king
Posted 07/05/04 11:15 - 278 reads
Posted by xmagx
Post #287551 - start of thread - splitview

These guys are worth keeping an eye on. With interests in GOM along with Mauritania (free carried), they seem attractive for some corporate activity at current levels. Nearly 10 million traded last night. They have a market cap of just over $A300 million. Here's a couple of crops from their March updates.

http://www.sterlingenergyplc.com/news/18_march_2004.pdf


These developments have important implications for the prospectivity of the contract areas and for the expected activity level on the licenses. The acquisition of further 3D seismic is planned, with an extensive two rig drilling programme in the second half of 2004/early 2005. Following the completion of the transactions with Premier Oil plc (“Premier”), Sterling will have no exposure to any of these costs, and will have a production royalty over 3% of reserves in PSC A & 6% in PSC B. At an oil price of US$25 – 28 per barrel, the royalty payment will be US$2.25 per barrel produced.

The 2003 results are expected to show a considerable improvement over those for 2002, despite the strength of sterling relative to the US dollar in the second half. Unaudited production revenues for 2003 were approximately US$9.1million on production of some 1.75 bcfge at an average price of some US$5.22/mcfge. Average production increased from 3 mmcfe/d at the start of 2003 to an average of 5.6 mmcfe/d for the final quarter. Through the use of forward contracts, Sterling has sold forward some US$13.4 million of gas into 2004 and early 2005 at an average price of US$5.60/mcf as part of its risk management programme. Current Group cash balances are approximately £5 million, which will be used to meet existing requirements. In order to provide appropriate incentives to staff, approximately 18 million share options have been approved for issue at the mid-market price at the date of allotment. After the further admission of 4,055,032 Sterling ordinary shares in connection with the Fusion offer, the total issued share capital is now 817,419,433.

Their homepage is http://www.sterlingenergyplc.com/

Sterling has interests in a number of producing gas fields in the Gulf of Mexico, all of which have drilling upside. In addition, Sterling has an exploration license over the Reed Bank area, offshore Philippines. This license contains up to 600 bcfe of “stranded” gas confirmed by discoveries in the 70’s and 80’s, plus significant exploration potential. Sterling plans to bring new technology to the area, which will unlock these potentially commercial reserves.


Any Views?

I don't hold.

Cheers,
xmagx