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Sterling Energy - Stunning deal in "Mauritania"

December 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Sterling has raised Â£97m through a placing of new shares at 17p in order to underwrite a letter of credit for US$130m to the Mauritanian Government enabling it to exercise its right to take up a 12% interest in the Chinguetti oil field. In return, Sterling will gain an interest in its revenues when the field starts producing in early 2006 at a projected rate of 75,000 bopd. Sterling's chief executive, Harry Wilson, describes this as a stunning deal, given that the high oil price should enable a rapid payback of this money, leaving it with an attractive long-term income stream, plus a meaningful increase in its proven and probable reserves. Keep buying. ...

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Sterling Energy - Stunning deal in "Mauritania"

December 2004

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