Sibir Energy Share Discussion Threads

[yf23_1] 16/10/2008 19:20

I don't think a $158m purchase warrants a £300m drop in market cap.

[hashertu] 16/10/2008 19:03

Am I correct in thinking that $158.9m has been transferred to related parties to indemnify two purchases that in total should be in the range $60m to $96m? And this is deemed to be satisfactory arrangement in the interests of all shareholders?

[len16] 16/10/2008 19:00

or an oily manager (like basil fawlty).

[cb7] 16/10/2008 17:40

just a thought, but maybe the hotel has oil central heating....

[mxds] 16/10/2008 17:34

Smoke and mirrors in this climate. Bad show

[davidwilkin] 16/10/2008 16:39

i dont invest in anything i can't understand....thats SBE off the radar, plenty of other oversold commodity stocks out there i'll buy one of those, a lucky escape - good luck to all holders seems like you will need it.

[alwaysbanking] 16/10/2008 16:18

Cant say we werent made aware of it - from the company accounts 2007

'Orton Oil Company Limited and Gradison Consultant Inc
On 12 March 2008 and 14 March 2008 the Company entered into agreements with Orton Oil Company Limited and Gradison Consultant Inc
(both related parties of the Group) respectively to procure the sale of their shares in Avtocard and Korimos (representing 50% of the ordinary
shares of these companies). The sale is conditional upon the Company managing the businesses for a period not exceeding six months. The
Company has indemnified the vendors against any losses which may occur as a result of the Company's management.
During this period of management the Company will finalise the acquisition price which will be not less than $60 million and not more than
$96 million. In consideration of the above the Company has paid deposits of $38 million to Orton Oil Company Limited and $10 million to
Gradison Consultant Inc both of which are fully refundable should the Company decide not to proceed with the acquisition.
The Group's joint venture, the Moscow Oil Refinery, owns the other 50% interest in these companies.'

I think HC knows what he is doing - maybe the City boys don't want us to like it but I dont see a problem with downstream assets personally.

[rumblefish] 16/10/2008 16:09

This deal cost us as must as Salym makes in 1 year. And then we add assets. THOSE ASSETS AR;NT GOING AWAAY. HC I'm SURE look at it long and hard. This adds assets to the company's bottom line.

Rumblefish

[alwaysbanking] 16/10/2008 16:08

a link for korimos
www.korimos.ru/eng

[ptolemy] 16/10/2008 15:57

I just had to laugh. Good Shalva, he'll never change.

[len16] 16/10/2008 15:13

remember when railtrack reffered to shareholders as grannies?

[alwaysbanking] 16/10/2008 15:12

The hotel looks impressive and has 1047 at near on $150 per night - Would we get a discount at it. lol I can't believe Sir HC has allowed this to happen unless of course IT IS in the BENEFIT of the shareholders. The EGM may resolve some of the questions this announcement poses. I believe the other two deals although sounding a bit suss may actually prove very beneficial to SBE.

[len16] 16/10/2008 15:10

short lifters

[gconvery] 16/10/2008 15:07

Maybe it's a hotel with a petrol station attached? ;-)

[davron8] 16/10/2008 14:50

miamisteve, I only had a general conversation as my contact must not disclose anything that others don't have access to. I'm sure that all will be revealed at EGM.
Runblefish is right, Mr Cameron would only buy assetts that fitted in with the best interest of shareholders.

[napoleon 14th] 16/10/2008 14:49

I read it like you did, miami...

First glance says I don't like it, but WTFDIK?
Market says 200p, down 75% in under 4 months.
Capitulation is in the air & recession yet to come....

Quite unbelievable, but grim news all round:

[strark] 16/10/2008 14:44

Looks like the shorters are closing now

[rumblefish] 16/10/2008 14:27

Don't forget that Sibir is involved in downstream activites, that involve the construction of Petrol stations on green field sites. Did'nt they say they will increase the number of BP stations form 50 to 120 over time. They also own the over 150 MTM stations in and around Moscow. Can't account of the Hotel purchase. But HC would just buy assets with it in some way bennefiting the company.

Rumblefish

[miamisteve] 16/10/2008 14:27

Davron - How can he be bewildered when there is no disclosure of the final price paid and the profit figures that have been given are small (around $8m).

What happens if Mr. T gets a further margin call? Which only a few days ago they announced hadn't actually happened.

[stuart14] 16/10/2008 14:23

len LOL!!

Why on earth are these guys messing around with these transactions.

[vision88] 16/10/2008 14:20

I heared it on the grapevine the oil had just ran out.

[davron8] 16/10/2008 14:15

Have just had a long conversation with a senior member of the company and he and everyone else is as bewildered as we all are re the price fall. I'm advised that the company have made a very good deal that when the full details are realised shareholders will be pleased.

Lets hope the EGM is called very quickly to get this all resolved and hopefully see the share price jump back up..

My own opinion. The MM's have taken advantage of the RNS and dropped the price to gain some stock at a cheap in a panicing market knowing that in the very near future they will make a very big profit.