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Sterling Energy - Production hiccup dents gains

June 2006

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.

  • Epic Code:
  • SEY
  • Price:
  • 22.25p
Shares in Sterling Energy at one point smashed through the 30p level and although market turbulence pulled them back, results were decent enough. For the year to December, Sterling generated a 19% rise in turnover to £13.6m and a 47% increase in pretax profit to £6.1m, in spite of production growth being pegged by the Gulf of Mexico’s hurricane disruptions to just 4%. But the real opportunity now centres on Sterling’s 8% stake, plus a separate royalty interest, from the huge Chinguetti oil field in Mauritania, which started producing in late February. For the months of March and April, it averaged 59,000 barrels oil per day (bopd) gross and although recent problems in the north of the field has reduced thi ...

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Related Articles

Sterling Energy (October 2006)
Sterling Energy (September 2006)
Sterling Energy - First oil flows from Chinguetti field (April 2006)
Sterling Energy - Cashflow to rocket when huge Mauritania oilfield comes on stream (February 2006)
Sterling Energy (August 2005)
Sterling Energy - Farm-out boosts exploration upside (May 2005)
Sterling Energy - Stunning deal in "Mauritania" (December 2004)
Sterling Energy - Free carry in Mauritania oil campaign (November 2004)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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