Sterling Energy... after the FOG clears

I can not see any reason for the decline in these shares other than the limited disquiet from the last share placing.

Sterling do have many irons in the fire and are producers in their own right.

I am putting the lack of progress down to market moods swings and the drop in oil prices.

HNR are not making any great strides away either from their recent bottoms.

The slow ascent to 64p is not really very much since the temporary intraday drop to 57p.

Nothing to dance for joy for there yet.



The drilling program was always going to be a volatile and pessimistic period from the moment they had a dry hole.

The fact that in overall terms, these are not a Company life threatening occurance to the PSC memembers as it would be if any were going it alone, seem not to have sunk in to the MM's minds.

They have overreacted to the bad news in respect of the PSC memebers and cained the share prices accordingly.

In my view, as the shift is now away towards production, any larger revaluing will not take place until production targets are being met.

It is not the end of the world, but patience is required.

Remember, Evoution recently valued the shares without Mauritannia at 29pence.

By 2005 Q4 I recall they expect *3 and by Q1 2006 *4.(I'll confirm that later).

Now that is really not too far away.