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You know, midtear, you might be right. Maybe they should have held up the Chad block announcements until the web master got around to adding a page to the ERHC site with all the nice block diagrams and narratives, maybe let a few weeks or month go by... sure, what's the rush.
I mean, ERHC shareholders are so understanding, they would never accuse management of withholding information or incompetence if the news leaked out while the website was being reworked.
What were they thinking! Man, having those block maps and acreages in the news release could have shot the share price up 50 cents or more! I would have repositioned my whole portfolio.
Wow, I cannot believe they let this happen!
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farrell, we might have gotten more information about the Chad blocks had ERHC not been sent on the defensive with a barrage of messages regarding the current share price, lack of news, etc.
I had questions about the Chad blocks that they never got to, and I think other IHubbers did too.
Unfortunately, about half the chat became a venue for venting, which overshadowed the whole purpose of the event in the first place.
I don't know what kind of response some of the participants where expecting (re: share price, lack of news, etc.). What did they expect Peter to say, "Oh, yes, we've been keeping that from you, but now that you ask, here are all the answers you've been waiting for."
If Peter & Co. had something wonderful they could tell us, they would (and in fact they have with two announcements this week about ERHC's Chad acquisitions). They either don't have conclusive facts, or they can't divulge strategic or developing information at present.
- LT
P.S.: This post is not directed against you; it's mainly toward the complainers and armchair quarterbacks on the board.
Vineseeker, it is a bit confusing.
I tried to explain a litte more what seems to be the case in this post. Hopefully ERHC will make things crystal clear soon. - LT
Pete, the way I read it, is that ERHC was granted an exploration area in the Chari-Ouest Block 3 (not the whole block).
I believe this was as of a result of a required relinquishment on the part of OPIC (they likely had to give up 50% of their leasehold—notice that their seismic covered less that half the block). OPIC still retains 70% interest of their portion of Chari-Ouest Block 3 that they were allowed to keep, and SHT (the national oil company of Chad) has the remaining 30%.
So most likely ERHC ended up with what OPIC relinquished, and of that exploration area, they have a 50% interest (i.e., 50% of the revenue before taxes & royalties). Likely SHT has the other 50%, but we do not know that for sure at this point.
The press release clearly said "the government of the Republic of Chad has formally awarded the company three oil blocks for exploration and development," so ERHC did not cut some kind of deal with OPIC. Whatever OPIC has done in its retained portion of Chari-Ouest Block 3 is totally disconnected and separate now.
So, really, it's like there's a Chari-Ouest Block 3A and Chari-Ouest Block 3B now. That's what I conclude from the information we have. - LT
P.S.: I do wonder if CPC might cut a deal with ERHC to farm back into the relinquished portion of Chari-Ouest Block 3. They really seem enthused with the seismic they have done thus far. But this is really going out on a limb.
midtier, you should have done a little more research before jumping on that...
In the context of CPC, OPIC is unequivocally Overseas Petroleum and Investment Corp.
Please see www.cpc.com.tw/english/content/index.asp?pno=63 to see the light:
"For many years CPC has engaged in cooperative exploration with governments, state-owned petroleum companies, and large international oil companies under the name of the Overseas Petroleum and Investment Corp. (OPIC), spreading its operations throughout the Americas, the Asia-Pacific region, and Africa."
Vineseeker, all we know is that ERHC received a lease in Chari-Ouest Block 3. We do not know how much of the block they received at this point.
The assumption is that OPIC was at the end of their exploration term and had to relinquish 50% of the block. But I have not seen that published anywhere. We need to get a copy of the OPIC PSC for the block.
Even so, the Ministere du Petrole could have decided to break up the relinquished portion of the block into more than one chunk (not likely). No doubt ERHC will release a map and area of their Chad blocks in due course, just as they have done with the JDZ and STP EEZ.
My focus with all of this is to establish the "closeology" of nearby discoveries. I am excited about ERHC's Chad acquisitions. I believe it took OPIC only 2-3 years and $46 million from seismic to first oil.
There is more information about Benoy-1 and CPC's assessment of (and enthusiasm about) Chari Ouest Block III that I plan to share once I have the time to compile it. - LT
Location of OPIC's (CPC's) Benoy-1 oil well (and possibly ERHC's block)
The Benoy-1 discovery is indeed in Bloc Chari Ouest III (as CPC calls it), a.k.a, Chari-Ouest Block 3. Here is a map from CPC that clearly shows its location:
Notice the crosshatching around the well denoting the seismic studies done in the southern half of the block. (More on this below.)
Here is a 2X blowup of the same map with labels I have added for OPIC's three block leases:
Correlating this with the Chad Ministere du Petrole oil block map, it is evident that we have clearly identified OPIC's three block leases:
This is a followup to this post, which explains why this information is important and how it may relate to ERHC.
With CPC's seismic done in the southern half, my bet is that ERHC has obtained the northern half of Chari-Ouest Block 3, right next to CPC's recent discovery. I wonder what the chances are that CPC would farm back into the block under ERHC's concession? They seem very excited about Benoy-1.
I'll post some more exciting information about Benoy-1 later, when I have more time. - Longtimer
I thought the Chad chat session went pretty much as expected, generally positive overall.
Perhaps one of the most important things Peter revealed is something he stated in two separate replies:
"There has been a marked increase in attention paid to us within the industry since the acquisitions were announced."
"We have also received a lot of industry attention since the acquisitions were announced."
"However, we are quite excited at the prospects for ERHC in the coming months as we start to pursue the milestones under our work commitments in the PSC. We expect a lot of activity in the coming months. We are quite thrilled at the Chad acquisitions and look forward to working with the authorities there. We have also received a lot of industry attention since the acquisitions were announced. We at ERHC are quite excited"
king, that is one of the questions I asked on today's chat but they didn't get to it:
"CPC's OPIC recently made a notable discovery in "Bloc Chari Ouest III" with its Benoy-1 well. Is this the same block that ERHC gained an interest in (a relinquished portion)?"
So there is still some mystery about exactly where ERHC's leasehold is. However, in today's PSC-signing news release, they did say, "Two of the Blocks, BDS 2008 and Chari-Ouest Block 3, lie next to the Doba Basin oilfield."
The "Chari Ouest Block III" leased by OPIC fits this description, as shown below:
So my thinking is the same as yours, that ERHC acquired a portion of OPIC's block due to relinquishment. - LT
How Taiwan CPC's discovery might relate to ERHC's blocks
Here's an excerpt from a report of CPC's discovery:
February 1, 2011
BMI View: CPC's discovery suggests that Chad could start producing gas in commercial volumes for the first time.
Taiwan's state-run oil producer CPC has announced its largest-ever overseas discovery, which has the potential to raise the company's total output significantly. The discovery, in Chad, could result in the start of gas production in the country.
CPC, formally known as Chinese Petroleum Corporation, announced its Chadian discovery on February 9 2011. The field, discovered with the Benoy-1 exploration well, has a production potential of 9,800 barrels per day (b/d) of oil and 35,000 cubic metres per day (mcm/d) of gas, Taiwan's official Central News Agency quoted CPC officials as saying. The company's test operations at the discovery well ran from January 27 to February 5 2011.
CPC believes that if the well reaches its full production potential it could generate a net profit of up to US$1.6bn over the discovery's expected lifespan of about 20 years, after deducting royalties, costs and taxes, according to CPC Vice President Paul Chen, quoted in Taiwan Today. CPC intends to sell the oil to other countries, given the high cost of transporting Chadian oil to Taiwan.
Big Boost
The Benoy-1 discovery is CPC's first in Chad, where it has invested nearly US$43mn since it entered the country in 2006. It operates three blocks in the country - BCO III, BCS 11 and BLT I.
(Source: www.pennenergy.com/index/articles/newsdisplay/1358149643.html)
CPC's Chad blocks are Bloc Chari Ouest III (BCO III), Bloc Chari Sud II (BCS II), and Bloc Lac Tchad I (BLT I). Looking at the Ministere du Petrole map, it appears CPC's discovery is in the "Chari Ouest III" block (looks like OPIC is listed beneath the label - see this post). It appears the area of this block would include the town of Benoy. Assuming this town is the namesake of the Benoy-1 well, we arrive at the location of CPC's discovery: Chari Ouest Block III.
What does this have to do with ERHC? It puts a notable discovery in the neighborhood of the western edge of ERHC's BDS-2008 block, AND, depending on the identity of ERHC's "Chari Ouest Block 3", ERHC may even have obtained acreage adjacent to CPC's discovery.
Will be interesting what we find out tomorrow. - LT
Re: Oil block map from the Chad Ministere du Petrole
For those who care, it appears that the concessionaires listed below some of the blocks in the diagram include the following:
ESSO - ExxonMobil
CNODC - China National Oil and Gas Exploration and Development Corporation, subsidiary of CNPC (China National Petroleum Corporation)
OPIC - Overseas Petroleum and Investment Corp., subsiderary of CPC, formerly Chinese Petroleum Corporation (Taiwan)
SHT - La Société des Hydrocarbures du Tchad (Chad national oil company)
I'll reference some of this information on my next post. - LT
kingpindg, yes I think you are right. I forgot about the Griffiths lease. Too bad, that block is right in the thick of things. - LT
One further thought on the identity of ERHC's Chari Ouest block...
The right-most red block below BDS-2008 (brown block) on the Ministere du Petrole map was Energem's "Chari Ouest" block as shown here:
This would actually seem to be a more favorable block than the one identified in my previous post since it is between the Doba and Doseo fields. This block also seems the more likely one to be given to ERHC, since it was made available by Energem's bankruptcy.
We need to nail down the exact location of ERHC's Chari Ouest block in the chat session Wednesday. - LT
This oil block map from the Chad Ministere du Petrole may clear up the mystery of where Chari Ouest Block III is. It shows different names for some blocks, which I would lend more credence to than the Korean map.
There is a square-ish block to the east and adjacent to the brown block (BDS-2008), that looks to have the label "Chari Ouest Block III". This block is labeled "Permit H" by the Korean map. This is right above the current oil-bearing fields.
There is also what looks to be a "Chari Sud Block II", which is the same as the southern-most Korean Chari block. The northern-most Chari block on the Korean map is named here "Lac Chad Block 1". The Korean map seems to be clearly in error, since the block is right along Lake Chad and nowhere near the Chari River.
The letters below each block label seem to indicate the licensee of the block, e.g., ESSO, CNPC, etc. (but the resolution of this map is not good, so it is hard to tell). If this is the case, then this map shows Chari Ouest Block III as belonging to CNPC. But since this map is current as of August 2008, part of the block could have been relinquished since then.
If someone can find a better version, that would be welcome.
In any case, we do have agreement between the two maps on the location of the Manga and BDS-2008 blocks, which this latest map does show as not being licensed. - LT
loki, here's more analysis on the Doba crude:
crudemarketing.chevron.com/assay/doba_summary.pdf
Homeport, good to see you too are still here and still monitoring the newswires! - LT
Hydrocarbon Characteristics
In the Doba and Doseo Basins, medium to high gravity crudes of similar quality in the Lower Cretaceous have been tested at rates up to 2,200 b/d oil. The oils are paraffinic, API gravity ranges from 23.8o to 39o and averages around 34o. Gas oil ratios measure 200-12,000 scf/STB, however the oil is generally undersaturated. In Doseo, one well tested a gas cap of 8.3 million cf/d. Oil pour point range from 4.4oC to 38oC, but most commonly they are 24o to 32oC, and viscosities are low at around 4 centistokes at reservoir conditions. Sulfur content by weight is 1% to 2.9% in Doba and less than 0.04% in Doseo. The oils may be in stacked reservoir with multiple oil water contacts.
In the Doba Basin, the second oil type consisting of heavy to medium grades, has been tested at rates of up to 2,368 b/d in the Upper Cretaceous. These crudes are generally viscous, varyingly biodegraded, waxless, with API's from 15o to 24.6o. Their gas oil ratio is less than 15 scf/STB, pour points are low—12oC to 7oC and sulfur content is 0.002% or less. This oil type was source from the Lower Cretaceous.
http://www.oilandgasonline.com/article.mvc/Chad-Prepares-to-Be-an-Oil-Producer-0001
Here is the first comprehensive map of Chad oil blocks that I have seen (all credit goes to kingpindg for finding this):
As kingpindg noted, there are three areas labeled Chari Block I, II, & III (could these be blocks 1, 2, & 3?). It would seem that one of the areas in the southern part of the country would be the one leased to ERHC (probably the one next to BDS-2008), based on this description:
"In the last quarter of 2004, Energem signed up to explore a large tranche of acreage that was relinquished by ExxonMobil in land-locked Chad. The Chari-Ouest concession area lies in the centre of the Doba Basin adjacent to the US oil giant's production complex, which includes access to an export pipeline to the coast. firstAfrica has an option to acquire the Chad project from Energem." - (source link)
The Doba Basin is in the southern part of the country, as well as the Chari River:
But the main import of the block map is that ERHC has apparently landed some pretty huge acreage (again!). - Longtimer
Hi all, still holding strong; been very busy. Nice to see the latest press release from ERHC. Sounds like this venture in Chad is much closer to bearing results than Eremor is/was.
Looks like the former Chari-Ouest block holder overextended itself, not to mention its shady past and an ill-advised loan:
Energem goes into bankruptcy without telling shareholders
FirstAfrica Oil, of which Energem once owned partial interest, had an option to buy the rights to Energem's Chari-Ouest block, but bowed out (it was going to cost them millions to take over the block after reimbursing Energem for the money it had sunk into the block). Cash-strapped FirstAfrica Oil was eventually bought out by BowLeven.
Energem acquired the Chari-Ouest block due to the forced relinquishment by major oil companies under the terms of license provisions. The permit areas were returned to the Chad authorities and subsequently awarded to Energem after a competitive tender and negotiation process. So this explains why Exxon gave up the license area; they were forced to.
Looks like the pipeline for export is all in place:
(Larger image here)
(Larger image here)
Looking forward to what more is revealed during the upcoming chat session. - Longtimer
Certainly not the results we were hoping for. Would have thought at least Blocks 2 & 3 would have garnered some interest on the part of the majors, as they have better seismic coverage. Plus Block 2 has closeology to JDZ Block 2. Evidently any structures revealed by the seismic were not compelling enough for the majors.
Our only hope is that the blocks ERHC chose are more compelling. STP reserved two EEZ blocks prior to that and one would assume they chose the "best" blocks... unless they sort-of didn't, to allow ERHC to end up with the best ones. (Remember ERHC was favored over EEL for getting first shot at the EEZ blocks.)
Perhaps ERHC will do some creative horse trading to entice some EEZ partners.
At this point however, it does not seem realistic to expect much in the way of immediate or near-term income (as a result of interest farm-outs) from ERHC's EEZ blocks. - LT
Google has the initial version that you posted cached now...
http://webcache.googleusercontent.com/search?q=cache:EezIbKQFK_gJ:www.oilcareers.com/content/jobsearch/job_advert.asp%3Fjobadid%3D397690+%22Reports+directly+to+the+ERHC+President/CEO.%22&cd=3&hl=en&ct=clnk&gl=us&client=firefox-a
Thanks for all your excellent research and postings, Kingpin! - Longtimer
Tamtam, interesting material. Works out to be about $10 a barrel. - LT
Kingpin, didn't see your message before replying to Midtier. But at least we both independently came up with pretty much the same conclusion. - LT
Midtier, if everything held to the original schedule, Phase II in Block 1 would be ending in February/March of 2011. But who knows if this was renegotiated when Total bought into Block 1.
Chevron announced that it had signed its PSC for Block 1 on February 1, 2005. Counting 4 years forward, Phase I would have ended by at least 2/1/2009. Consistent with that, Addax revealed in its conference call on March 4, 2009 that the Block 1 consortium was drilling a second well. So Phase II for Block 1 would end February/March 2011 unless an extension has been granted. - Longtimer
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45321828
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45321528
Balance, agree 100% about the developing of the JDZ blocks in conjunction with one another. Also believe there was a Sino-Total JDZ plan, contingent on drilling results. Bomu-1 was completed October 3, 2009; first public leak of Total's buying into Block 1 came on March 4, 2010. I think it is just a matter of time before Total acquires an interest in at least Block 2, and quite likely Block 4, then Block 3. Quite likely the reason why the JDA was so accommodating with Phase I.
As I have mentioned before, I do not think ERHC will sell out prior to the next round of drilling; not unless China is ready now to meet that reportedly $5-10 a share SEO sweet spot.
But I would be most happy for your hunch to be correct and mine to be wrong! - Longtimer
Then they'll have to start getting more creative if current parameters stay as they are.
Surely they realize this and have a silver bullet in reserve (one would hope!).
We'll see what plays out between now and the end of the year. I'm not going to get too worked up about it for now; will reassess then. - LT
Unsustainable
As shown here, ERHC will not be able to obtain $50 million with the current limit of authorized common stock if it continues to make private placements with the same terms as last week's deal.
It would take a lockup of approximately 435,272,770 shares (issued and warrants) to obtain $50 million dollars. Prior to last week's deal, there were 728,300,444 shares outstanding, leaving approximately 271,699,556 authorized unissued common shares remaining. So it is obvious to see that ERHC cannot not get their $50 million if they keep issuing stock at $.22 and with the same ratio of warrants.
So:
A. They only plan on going after a small portion of the $50 million in the near future (after all, the shelf registration is good for two years).
B. They anticipate catalyst(s) that will boost the share price, and therefore make for more favorable placement terms (being able to issue less stock for more money).
C. They plan on making use of preferred shares. (Not likely IMHO)
D. They get shareholders to increase the authorized shares limit.
E. A combination of the above.
I'm thinking it will be a combination of A & B. I am especially interested to see if anything becomes of this: "Other would-be buyer for Shell's assets include the trader and E&P concern Elan Oil, which employs a former executive of Addax Nigeria, Les Blair. Elan has joined forces for its bid with Emeka Offor's ERHC company which is present in the Joint Development Zone between Nigeria and Sao Tome." (Link to full article)
Whatever the case, as a shareholder, I fully expect ERHC to use these deal-with-the-Devil funds to increase shareholder value in a prompt, concrete way, and not have them sit in a bank account somewhere for the next two years. Otherwise, this "dilution for dollars" exercise will be completely senseless. - Longtimer
Krom, doing these deals is like doing business with the Devil: You get what you want (cash) by giving up more (cheap stock and warrants).
Not only does the purchaser profit, but the placement agent gets a sweet deal also. R&R got $120,000 plus warrants for 454,546 shares at an exercise price of $0.275 per share, just for doing the deal.
That's the deal our illustrious management team, including David Bovell, Vice President Corporate Devaluement--I mean Development--got for us. ERHC will potentially get $3,914,091 for issuing 16,363,638 shares (if and when warrants are exercised).
But supposing those warrants are NOT executed in the near future, ERHC got $1,880,000 for a charge of 16,363,638 shares against their remaining authorized shares. So at this rate, they would have to lock up approximately 435,272,770 shares to get the $50 million dollars they are looking for, with the terms of this first offering, again assuming no warrants are exercised. Of course, they would get about twice that amount if the warrants were executed. But if ERHC wants the money soon, they can't count on the warrants bringing in that cash.
Here's the math:
$50,000,000/$1,880,000 = 26.6
26.6 x 16,363,638 = 435,272,770 shares
So let's hope something happens soon that will lift ERHC's share price, because this first placement was truly a deal with the Devil. - Longtimer
Short selling... Midtier, if that is true, then we all should put our shares in cash accounts. (Open another account with your broker if need be.)
All my shares are in a cash account. - LT
Just a reminder of Total's take on Block 1:
"But Total is optimistic that the venture will turn out to be a good buy, just like with the case with prosperous Akpo offshore block, which was formerly owned by Nigerian unit of ExxonMobil, which abandoned the offshore block based on misconception that there was would not be much hydrocarbon find in it."
"Chevron refused to comment on the subject, but a top official of Total, who spoke with Vanguard in confidence, said in spite of negative reports on the finds in the region; it intends to deploy more sophisticated technology."
http://www.vanguardngr.com/2010/09/nigeria-sao-tome-to-discuss-jdz-operations/
That is my thinking too, Midtier. AIM will happen. No buyout before reserves are proven. - LT
Great post, Tryoty!
Sometimes just having a simple visualization of something can crystalize an idea and spark further meaningful discussion. - LT
Yes, BB, it is surprising SEO would stand for an approximate 25% dilution (if all $50 million were issued at the same terms as the initial placement).
So...
A. He is buying the new shares himself (which increase would be reported eventually in ERHC's SEC reports) or via a shadow entity; in either case he would be increasing his ownership of the company. (Don't think this is likely.)
B. Sinopec and/or Total are/is buying (with SEO's blessing). A good way to hide their intentions (at least until they hit the 5% ownership mark).
C. Only some of the shares are going to be sold at this cheap price--sufficient shares to provide enough money to make an initial investment/downpayment in an acquisition/marginal field interest, with hopes that the news will boost the share price to more favorable levels for subsequent placements.
D. Some other factor that makes more dilution acceptable to SEO.
Wish we knew the gameplan.
Regarding Peter's statements regarding the shelf registration and those contained in the supplemental prospectus, I really do not think anything necessarily changed. They mentioned how the proceeds would be used in the prospectus, just in a way that doesn't tie them down. But one could still ask: Did something change between the time Peter made his remark and when the prospectus was issued? Is this an indication that another opportunity (Shell property with Elan) has gotten away from them?
I suppose time will tell. - LT
Pete, thanks very much for posting this. - LT
Balance, call me naive, but I tend to take ERHC's words at face value. What I say below is all IMHO, of course:
1. ERHC's all-encompassing wording in the prospectus about usage of the proceeds is a means of not limiting themselves. If they say specifically that they are going to use the funds for potential acquisitions, then they would have to do so or else open themselves up to fraud lawsuits. I believe DK has communicated unofficially that the intent is to use the funds for acquisitions in one form or another.
But nothing is certain until the dotted line is signed (for an acquisition). If no acquisitions work out, they still have the latitude to use the funds in another way. I am not saying this is necessarily a good thing, but this is how I interpret their statement.
2. ERHC's seeming rush to get the shelf registration done and private placements going at a time when their share price is not favorable indicates to me that there must be some opportunity at hand for which they need the cash. DK has indicated that the ERHC board has directed that the $20 million on hand is to be retained to support on-going operations. While this seems ultra-conservative, given past history, it is probably the prudent course to take. So they have to raise cash if they are going to pursue acquisitions.
Kingpin alerted us to such an opportunity back in September, not long after the flurry of activity to get the shelf registration effective: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55606867
That being said, I am pretty steamed that management waited to sell stock until a point in time when the share price has dropped to low levels... after years of talking about making acquisitions. Perhaps they were waiting for the stock to pop after a favorable Phase I endeavor to issue shares. (Peter's video earlier this year seems to indicate they expected good results to be reported soon thereafter, as we all know.) But if that was their expectation, then why didn't they get the shelf registration done and ready at that time? The impression one gets is that current management is reactive as opposed to proactive and rather slothful in execution. But it is easy to armchair quarterback when you don't know all the things that happened behind the scenes. SEO evidently is content with the course of matters--he voted to elect Peter to the board of directors.
3. Not withstanding, I don't completely discount the possibility for a little back scratching in the issuance of the new stock. Would like to see some transparency as to whom the private placements are being made. If public institutions are buying, that would be a good thing. It is another thing if buddies and comrades are being given the opportunity to buy shares on the cheap as a favor.
4. Whatever the reality, we have had positive developments this year, and they augur good things to come:
a. Sinopec/Addax staying the course in the JDZ, with a willingness to advance to Phase II as indicated by ERHC.
b. Total moving into Block 1.
c. Les Blair joining the board of directors.
d. Award of EEZ blocks.
Balance, even though we differ in the way we look at things, I do appreciate your posts. They help widen the view to include scenarios that help me think outside the box and weigh their possibility/probability. - Longtimer
2 points about JDZ Phase I extension:
1. ERHC deserves credit for noting that they supported Sinopec and Addax in "applying to enter into Exploration Phase II pending the completion of the studies." They did not have to mention that. They could have only announced that the JDA had granted an extension to Phase I. Their additional comment lets us know that there is a desire/intent on behalf of Sinopec/Addax to enter Phase II. Had they not included this information, there would be a lot more uncertainty about Phase II happening.
2. ERHC also let us know that it was the JDA's decision to grant another six month extension. It's not beyond the realm of possibility therefore that the consortia could opt to enter Phase II before the six months end, after they complete their "studies." So perhaps some news from the JDZ will come before the ides of March.
- Longtimer
I see you posted an excerpt from Africa Energy Intelligence on this back on September 15. This broke after the flurry of activity to get the shelf registration of stock approved. Does make you wonder! - LT
kingpindg
Wednesday, September 15, 2010 8:03:19 AM
Post 222258 of 225857
Re: None
Hmmm...Offor and Blair team up...?
Best Google-assisted cut and paste I could do from the subscription article...
Shell in Quick Sell-Off
The Anglo-Dutch major is continuing to dispose of its onshore concessions. Some deals are about to be announced...(missing piece)...Other would-be buyer for Shell's assets include the trader and E&P concern Elan Oil, which employs a former executive of Addax Nigeria, Les Blair. Elan has joined forces for its bid with Emeka Offor's ERHC company which is present in the Joint Development Zone between Nigeria and Sao Tome...(maybe more missing)...
http://www.africaintelligence.com/C/modules/login/DetailArt/LoginDetailArt.asp?rub=login<=ANG&service=ART&context=CAN&doc_i_id=85401510
Kingpin, maybe so. That would explain the urgency to get cash. Would be reassuring to see ERHC at least make a good acquisition if the company is going to dilute its stock by issuing cheap shares.
Here was Dan's take on it back in September:
dat_51or
Friday, September 17, 2010 12:17:11 PM
Post 222776 of 225855
Re: None
Here's an email reply (yesterday) from Dan Keeney. Nothing new, but thought I'd share it to take up space on this Board.
Still waiting......
dat
DK: Thanks for your interest in ERHC Energy. You’ve asked a couple different things, so I will address them individually.
dat: I'm sending you a portion of a subscription article by African Intelligence (below) that mentions that ERHE and Elan Oil are "would be" buyers of Shell Oil assets in on shore Nigeria. It would be helpful for some official news and details from our company rather than learning of this from the media.
DK: Journalists speculate about all sorts of things. We do not comment on speculation or on media reports. In the event the Company was to enter into a Memorandum of Understanding or a Letter of Intent with another organization, ERHC would disclose that to its shareholders in a timely manner, as the Company has done in the past.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=54527622
Wow, talk about a slap on the wrist by the SEC!
Basically, it seems they were telling ERHC, "Hey, if you want accelerated filing, you've got to have your paperwork in order. Don't expect expedited service with sloppy filings."
Just seems like another sign that there is some urgent need to get shares issued. Conspiracy or an acquisition opportunity at hand (or some other cash need)? Guess time will tell. - LT