Replies to Post #108617 onERHC Energy Inc (ERHE)

My memory may be getting confused with all the mergers and drilling, etc, but wasn't 150 million what starcrest received from addax for 291? Has the legal team convinced Offor that the only way he can keep his erhe is to hand over starcrest's deal?

Sidewinder

09/26/07 7:48 PM

#108665 RE: oilphant #108617

oilphant , where do you get 150ml , that only equates to .2112 a share , a spit in the bucket

balance_builder

10/01/07 4:58 AM

#108886 RE: oilphant #108617

Oilphant...with an injection of $150 million, ERHC could purchase producing, or near producing oil properties like they've said they plan on doing. This would certainly assist the co is being able to "stand on is own" and would also "enhance SEO's holdings".

Before we would move into acquisition mode however, I would think the necessity of hiring a CEO and CFO would be the co's next move. With the co's 8-31-07 announcement stating in part:

"Additionally, the board approved management's recommendation to reformulate the Company's business plan. The reformulated plan will permit ERHC's management to expand the Company's business focus beyond the Gulf of Guinea."
http://biz.yahoo.com/iw/070827/0295432.html

....I would assume the properties to be acquired would be outside of the GOG. Niger Delta? Libya? United States?

I have a hunch you made a correct call on this one:

http://investorshub.advfn.com/boards/read_msg.asp?message_id=18323159

Your timing of this post seems to fit pretty good with SEO stepping down (as I strongly believe he would NO WAY give up the ERHC reins after holding them so tightly for 6+ years without having a deal IN hand first):

http://investorshub.advfn.com/boards/read_msg.asp?message_id=22122873

ERHC'ers should, IMHO, reread the article provided in Richkans last post. It states,

"ADDAX TO AQUIRE 40% OF JDZ BLOCK 1
In a press release this morning, Addax announced an agreement to acquire a 40% working
interest in the JDZ block 1. The block, located offshore West Africa, lies in the deepwater
between Nigeria and Sao Tome and Principe in the Gulf of Guinea. JDZ block 1 is located
in water depths of around 1,500-1,900 metres and covers an area of 704km.
Chevron, with a 51% interest in the block and operatorship, has significant deep water
development experience, lowering any development risks. As shown in figure 1, block 1
lies within the East Niger Delta basin, in a zone of minor thrusting and shale swelling, very
rich in hydrocarbons. In addition to the Obo-1 oil and gas discovery made on block 1 in
2006, this zone contains large discoveries such as the Akpo field. According to Afren, a
partner on the block, 13 prospects have been identified on the block, with Exploration
Consultants (ECL group company), a third-party engineering firm, estimating an unrisked
mean prospective resource of 3,843 million barrels (1,168 million barrels risked) on the
block. This would equate to 1,537 million barrels on an unrisked basis (467 million barrels
risked) net to the acquired 40% interest.
Figure 1: Niger Delta regional geology
Source: Nigeria - São Tomé & Príncipe Joint Development Authority
As per our 7 August 2007 Afren Initiation Report, we currently estimate the PV of a JDZ
discovery at US$4 per barrel. While Addax does not currently provide any resource
estimates on the block, a 40% interest in the block, based on the ECL resource estimates,
would thus equate to US$6.1 billion on an unrisked mean basis (US$1.9 billion on a mean
risked basis). As such, we believe that the above transaction metrics represent a fair risk
reward proposition for Addax shareholders, with the potential for a significant return on
initial investment.
Project update
While it is our understanding that Chevron remains the operator on the block, note that
Addax has previously secured drilling days on a deep water drill ship for up to 10 wells in
the area. As such, in addition to the proven deep water expertise provided by Chevron, we
believe Addax’s existing access to deep water drilling could potentially be used to
accelerate the exploration work on this block."
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23232280

It would be wise, again IMHO, to re-read this post by Richkan:

http://investorshub.advfn.com/boards/read_msg.asp?message_id=22454081

His gut instincts are probably much better than the average joe's based on his lengthy career involved directly with the market. Now, with Oilphant inquiring about an infusion of cash into the company......do we have a mesh of some sort here? Throw in SEO stepping down....coupled with his seldom made comments following his step down and I think there is some solid ground.

Number 5 next followed by number 1?

http://investorshub.advfn.com/boards/read_msg.asp?message_id=22628599

First day of bowhunting! Off to the woods for some ultimate peace.

Oh yeah, one more comment. Jeff Schrull would NOT allow Addax to purchase 40% of block 1 if he didn't feel he "knows". Remember also, Addax was a takeover target from the day they IPO'ed. XOM has very deep pockets...and like to purchase known reserves....so never fully count them out of anything. Read this post paying paticular attention to the CEO who has built Addax:

With regards to Jean-Claude Gandur, who singlehandedly build really succesful Addax Petroleum, he declared that he would like to have more time for himself and for his hobbies, like his Egyptian art collection. Understandable given his age.

You draw your own conclusions. Just my 2 cents.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=13316063

stocks2rise

10/01/07 9:11 AM

#108894 RE: oilphant #108617

150 million barrels? in reserve? a producing well? Income?

Homeport

10/04/07 12:55 PM

#109111 RE: oilphant #108617

What could a minnow do with 250 million, Oilphant? Any suggestions would be appreciated, as we really need creative ideas.

As your query was answered by more than one here, I hope you'll show the same courtesy.

Saudações,
HP

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