This Company has a poor record when it comes to exploration success and should invest its
millions elsewhere instead of throwing down some useless oil non events.
They would create more shareholder value by investing in JVs with successful oil producers in
the small to medium enterprisers.This BOD have big ideas but small brains when it comes to
The one oil producing investment they have an interest in has been going downhill for the past
Five years and will continue to do so regardless of the excuses for declining production.
There are plenty of opportunities out there in what is increasing prices for oil combined with an
Increase in market demand currently so SEY get your act together.
We shareholders are loosing patience with paying out good salaries to a BOD that has shown
little return for shareholders and share value for too many years.
Todays News Release proves the point.
Sterling Energy PLC Odewayne, Republic of Somaliland
Source: UK Regulatory (RNS & others)
RNS Number : 6613P
Sterling Energy PLC
04 September 2017
4 September 2017
ODEWAYNE, REPUBLIC OF SOMALILAND
Sterling Energy Plc ("Sterling" or the "Company"), the AIM listed oil and gas exploration and production company (AIM: SEY), is pleased to announce that the Government sponsored 2D seismic program of 1,000kms full fold data on the Odewayne Block was completed on the 24(th) August 2017. This part of the campaign satisfies and exceeds the minimum (500km) work obligation for the current third period, for which Sterling is fully carried by Genel for all costs. The Company expects initial processing results in Q4 2017 and will thereafter undertake its own technical evaluation of the data.
Sterling Energy Plc's CEO, Eskil Jersing, said:
"We are very pleased that this phase of the seismic campaign has completed on time and safely without incident. The initial brute stack 2D data is encouraging and provides the first detailed subsurface view in one of the last untested large frontier rift basins in Africa. We would like to congratulate the Ministry of Energy & Minerals for the successful completion of the acquisition of the first 1,000kms over the Odewayne block."
This announcement is inside information for the
purposes of Article 7 of Regulation 596/2014.
Sterling Energy Plc Tel: +44 20 7405 4133
Eskil Jersing (CEO)
Michael Kroupeev (Chairman)
Peel Hunt LLP Tel: +44 20 7418 8900
This information is provided by RNS
The company news service from the London Stock Exchange
Beardsall gone in May and now his replacement at Ceo and 2 more directors gone. Are we getting ready for something big, de listing, takeover or being taken over? Or even shutting up shop and giving us the money lol
and this lot have quite a lot of cash and no debt, I was going to drop these pdq on any spike but will now stop and assess the future prospects depending on the deal done. You never know this dog may yet have its day.
Cameroon licence now gone With the extension of the licence period in Somaliland any drilling there put back by two years. Most likely is exit of Somaliland after negative 2D seismic evaluation. So that will just leave Mauritania for exploration drilling in 2017. The company has nearly $100 million cash and has nothing currently to spend it on.
There is a new May investor update presentation on the SEY website. Current next drilling looks to be Mauritania in H2 2017. As previously stated I think Cameroon and Somaliland look poor assets and any activity is a long way off. That leaves the prospect of new projects, although the use of newspeak jargon in the presentation leaves it unclear (to me) exactly what they plan to do with the near $100 m cash pile. I note a director of SEY is also a director of Circle Oil (COP) who currently have producing assets (Egypt looks good), and are in a financially distressed state. Such distressed assets may be of interest to SEY.
Executive Chairman Alastair Beardsall has left the Board for personal reasons. The Board has been freshened up with new faces. There looks to be some corporate action in the offing here, perhaps by the end of June (16).
AB still on the Board of JPRL as I post.
sp around 16.5p
This BOD has no idea of how to achieve Shareholder value.
They have been devoid of good business ideas for years even with adequate finances to move the
business progressively forward.
Do all shareholders a favour and resign.
Selling this company and its assets including its cash for the benefit of Shareholders only is the only way
Shareholders will reap any value.
Ah well we can all dream.
As anticipated SEY is exiting Madagascar by dropping the remaining Amilobe block. I expect Cameroon and Somaliand will not be far behind.
Interestingly the CEO states they want to be "focusing on shorter cycle revenue generating assets". So it looks as if SEY are working on a farmin or acquisition of a producing asset., look forward to news within two months.
The market cap is £36.5 million but the cash in the bank is nearly double at £69 million. This has been so for years in which time the directors have essentially done nothing apart from draw their salaries. In most companies they would be removed for such lack of effort or would do the honourable thing and resign. If you can't invest the cash give it back to the shareholders.
Now on the company website, most of the prospects are "frontier" so odds of around 100/1 for success. The prospects look weak to me, a lot of drill or drop decisions soon to be made. I can see Sterling exiting from Madagascar and Somaliland, after data set interpretation, and being thrown out of Cameroon, which is probably good as the prospect looks poor following the initial duster. They may have something in Mauritania but drilling there a long way away. So why not buy up distressed assets in a distressed market? So come on Board do something with the cash!
Not much actually as previously announced by company, yet. They have cash in the bank and plenty of licences. Money flow indicators have been pointing up for a while. Some good volume in recent months. Bollinger bands tight, I can see a price spike coming!
ICB, Unfortunately no clue other than perhaps an inter institutional investor transaction.
What I do know is that SEY has lots of cash and little oil reserves and no immediate or short term means of discovering any. Whereas a virtual sister company JPRL ( similar large ii`s and Director) is struggling to stay afloat because it has no cash or cash flow due to depressed oil prices. JPRL already has around 100 million barrels of C2 reserves with potentially more to find.
A SEY farm in to JPRL or a merger of the two looks sensible to me, but not sure of the legal niceties concerning all the cross shareholdings.
Would welcome any sensible views from posters regarding this.
The volume is high today for SEY largely down to a single trade of 1,350,000 shares at 15p which is well below the spread. The sp however closed up at 17.5p. It looks odd. Does anyone have any explanation?
The map of C3 suggests the licence is huge. "This shallow water block lies in an underexplored area of the Mauritanian shelfal region that has seen very limited drilling and seismic acquisition".
As junior partner they could be forced to pick up 40% of Phase 2 and 3 obligations which include 700 sq km of 3D seismic and two wells. Not cheap but would only do so if the 2D seismic looks promising.
Tullow is the partner. I'm not sure if Tullow itself isn't a better play on a recovering oil price (and if oil doesn't recover it doesn't matter).
I'm feeling pretty vulnerable here. I would like them to spend the cash on some solid production at rock bottom prices, and go exploring with the cash flow.
So perhaps now AB you will find SEY a licence or a farm in opportunity to try and discover some oil and/or gas? Or a combination of exploration and some existing production?
Perhaps not bandit country in Africa, I suggest you go back to South America.
Mauritania Royalty Agreements with Premier Oil plc
Sterling Energy Plc, the AIM listed oil and gas exploration company (AIM: SEY), announces that it has recently been notified of changes to Premier Oil Plcs (Premier) interests in PSC A, PSC B and PSC C-10 offshore Mauritania. Sterling has an interest in these licences under two Royalty Agreements (Royalty Agreements) with Premier that cover, amongst other things, a royalty over Premiers share of production from the Chinguetti field and the commercial development of existing or future discoveries within the PSC A, PSC B and PSC C-10 contract.
The Royalty Agreements initially covered PSC A and PSC B, including production from the Chinguetti field.
In 2011, the exploration areas of PSC A and PSC B were transferred to PSC C-10 and the remaining prospects on PSC A (namely the Banda gas discovery) and PSC B (namely the Tiof and Tevet discoveries) were ring fenced under their existing PSC terms.
Notwithstanding the grant of PSC C-10, the Royalty Agreements continue to grant Sterling a royalty over Premiers interest in:
(i) production from the Chinguetti field;
(ii) the commercial development of the Banda, Tiof and Tevet discoveries (if any); and
(iii) the commercial development of any future discoveries on PSC C-10 (if any).
Premiers exit from PSC A, PSC B (other than Chinguetti) and PSC C-10
Sterling has recently been notified by Premier that Premiers interest in:
(i) PSC B as it applied to the Tiof discovery has expired effective 30 November 2012;
(ii) PSC B as it applied to the Tevet discovery has expired effective 31 May 2013;
(iii) PSC A as it applied to the Banda gas discovery has expired as at 31st December 2014;
(iv) PSC C-10 has expired as at 30th November 2014.
Premiers exit from PSC C-10 does not affect the entry into Phase 2 of PSC C-10 by Tullow Oil Plc and Société Mauritanienne des Hydrocarbures et du Patrimoine Minier.
Premiers exit from each of PSC A, PSC B and PSC C-10, as set out above, does not affect the royalty currently received by Sterling from Premier over Premiers interest in production from the Chinguetti field. Other than Chinguetti, Sterling does not expect the Royalty Agreements to apply to any other discoveries or developments related to PSC A, PSC B or PSC C-10.
Sterlings Chairman, Alastair Beardsall said
It is disappointing that Sterling will not benefit from a royalty linked to Premiers participation in a development of Banda, Tiof and/or Tevet.
Couldn't agree more. Fat salaries and no action. This is a disgrace of a stock. Mgmt seemingly happy to fund their retirement at our expense. IR - you monitor the boards a response please... What's re the fat cats actually doing except smoking cigars and laughing at the PIs. Indolent doesn't even come close......
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