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The fact is activity and share price has been dwindling since seismic was completed, not, up...thats what I am referring to. Could be just stagnation and boredom I guess. But, thats assuming no one has leaked the data.
I agree, the blob was likely water, that doesnt mean there are other areas they can drill, I wish they would report thier plans going forward in Kenya and announce a partner in the EEZ.
This market is cleary saying the current situation is not good news.
so is Dec 30th 2014? the deadline? The effective date falls ninety days after the execution of the PSC
Kenya Operations Update
Upon successfully meeting all conditions required under the agreement, the farm-out agreement between ERHC and CEPSA went into effect on February 7, 2014, and the transfer of operations to CEPSA was completed at March 31, 2014. During the month of January 2014, ERHC awarded a contract for a 2D seismic survey of at least 1,000 kilometers in the Block in compliance with the work program to BGP Kenya Limited. The 2D seismic program was designed to cover areas of interest resulting from structural mapping of prospective basins enabled by the airborne Full Tensor Gravity Gradiometry (FTG) survey of Block 11A completed in January 2014. The FTG survey confirmed that the Lotikipi basin extends into Block 11A and significantly advanced the exploration team's understanding of the internal structure of the Lotikipi rift basin and enabled the identification of the most prospective areas. The work on the 2D seismic survey began in April 2014. Upon completion of the 2D seismic program during the summer of 2014, ERHC and CEPSA will have satisfied the minimum work program requirements for the initial two-year exploration period under terms of the PSC.
Key Provisions of the ERHC's PSC on Block 11A
Exploration Term
The initial exploration period is two years from the effective date of the PSC. The effective date falls ninety days after the execution of the PSC. The initial exploration period is extendable for two additional two-year exploration periods contingent upon fulfillment of the Company's work program and expenditure obligations under the PSC.
Table of Contents
If not renewed, the PSC expires automatically at the end of the initial exploration period or at the end of any additional exploration period unless a commercial discovery is made before the exploration period expires. In the case of a commercial discovery of crude oil in a relevant development area, the PSC will run for a development period term of 25 years. In the case of a commercial discovery of natural gas in a relevant development area, the PSC will run for a development period term of 35 years.
Relinquishment and Surrender
The PSC provides for a mandatory surrender of 25% of the original contract area by the end of the initial exploration period to the Government of Kenya and 25% of the remaining contract area by the end of the first additional exploration period. . In the case of a commercial discovery of crude oil in a relevant development area, such development area is excluded from the original contract area for the purpose of surrender calculation. Furthermore, ERHC may surrender an additional part of the contract area and such voluntary surrender shall be credited against the next surrender obligation. The PSC will terminate in case of a surrender of the entire contract area.
Signature Bonus and Guarantees
The PSC requires a signature bonus of $310,000 which the Company paid in full as of September 30, 2012. The PSC also requires the Company, upon entry into each exploration period, to provide a bank guarantee of 50% and a parent company guarantee of 50% of its full minimum work and expenditure obligations under the work program for each exploration period.
Proposed Exploration Work Program
The PSC with the Government of Kenya obliges ERHC to carry out the following minimum work program:
(A) During the Initial Exploration Period of Two (2) Contract Years - Minimum Work and Expenditure Obligations:
? Acquire and interpret 1,000 km2 of gravity and magnetic data (at a minimum cost of US $250,000) and
? Acquire and interpret 1,000 Km/line of 2D seismic data (at a minimum cost of US $10,000,000)
(B) During the First Additional Exploration Period of Two (2) Contract Years:
Minimum Work and Expenditure Obligations to:
? Acquire 750 km2 high density of 3D seismic data (at a minimum cost of US $30,000,000), or
? Drill one (1) well to a minimum depth of 3,000 m (at a minimum cost of US $30,000,000)
(C) During the Second Additional Exploration Period of Two (2) Contract Years:
Minimum Work and Expenditure Obligation to drill one (1) well to a minimum depth of 3,000m (with minimum expenditure of US $30,000,000).
However, if the Company satisfactorily completes the minimum work obligations without having spent up to the minimum expenditure, the Company will be deemed to have satisfied its obligations under the PSC.
http://biz.yahoo.com/e/140814/erhe10-q.html
From what I understand it usually takes a minimum of 6 months to fully study the seismic data and extrapolate educated theories and gain a consensual drilling plan. ie.. We have a long wait, so no news from CEPSA would be a positive for now IMO>
PS Oher than "we are buying you guys out for 2 billion" that would be nice.
It is a mystery, why CEPSA left Swala ....cant we just call them to find out the reason? Or was it just simply time as stated? Still doesnt make sense considering the preliminary reports optimist tone.
3 MONTHS AGO...
Adamantine Energy Completes Interpretation of FTG Survey
May, 2014
Adamantine Energy, the privately owned East African-focused oil and gas exploration company announces the interpretation of its 14,500 line km airborne FTG survey of Kenya block 11B.
Commenting on the interpretation, Chris Matchette-Downes of Adamantine Energy, commented: “the FTG survey has confirmed five basins on Block 11B. The FTG data combined with our recent field work have significantly increased our geological understanding of Block 11B thereby enabling us to further refine our seismic program”.
Adamantine is at the advanced stage of its tender for 500km 2D seismic program and plans on announcing further details soon.
TODAY.... PAGE 11 "Potential drilling on block 11B Kenya (dependent on
evaluation of seismic)."
http://www.bowleven.com/sites/default/files/attachments/pdf/TransactionJuly2014.pdf
http://oilnewskenya.com/tag/kenya/
Apparently the longs and the shorts are all on vacation and obviously there are NO insiders trading on any negatives or positives. Everyone seems to be lazily watching the computer generate digital hydrocarbon models? We need drill news yesterday.
Low volume is not a bullish sign imo. We need official good news!
OT: http://www.marketwatch.com/story/oil-gas-basin-opens-in-kenya-2014-08-07
Simba controls 7,801 square kilometers in Kenya, with 11 new targets, right in the heartland of African Exploration. Simba is currently trading at $.06 with a market cap of $17 Million CAD, and trades on the TSX Venture Exchange (TSXV: SMB, Frankfurt: GDA, OTCQX: SMBZF).
Consolidation activity in the African petroleum nations is heating up. Glencore Xstrata (GLNCY-LON) recently took over of Chad oil producer Caracal Energy (CRCL-LON) for $1.35 billion, while Al Mirqab Capital took over of Heritage Oil (HOIL-LON) for $1.55 billion.
Exxon Mobile (XOM-NYSE), BG Group (BG-LSE), Marathon (MRO-NYSE) and Apache (APA-NYSE) are also active in East Africa. Further investment and consolidation is expected.
Simba Energy has a strong Pan African portfolio (Kenya, Guinea, Liberia, Ghana, Chad) although the company's current focus is on the Mandera basin in Kenya on Block 2A, where Simba holds a 100% interest.
ot 09 August 2014
CAMAC Energy, the oil exploration and production company with interests in West Africa and Kenya, has found new oil and gas reservoirs in a previously unexplored section of its licence area in the Oyo field, offshore Nigeria, it said on Monday. Camac’s shares rose 0.77% to 655c after the announcement. The shares touched a peak http://oilinkenya.co.ke/camac-hits-oil-and-gas-in-unexplored-section/
Also, Nairobi — KENYA is poised to be among the first African countries to benefit from a US$5 billion the World Bank Group has committed for technical and financial support for energy projects in the continent.
The country is among other nations that has partnered with President Obama’s Power Africa initiative alongside Ethiopia, Ghana, Liberia, Nigeria, and Tanzania.
So... Steel, your the one who bought my 20,000 shares! lol
(only shares Ive ever sold) for vacation expenses. lol Drill baybee Drill! Long way to BE for this old timer. BTW single digits ends Monday, IMO.
It should be making 15 -20 cents plus, amazing, this sick market doesnt react like it used to. I wonder if they announce they just produced a million barrels of oil this month if the market would wait to see it in their car's gas tank?
Given the lack of volume Id'e have to say the news isn't good. Even though it is. Hows that hope/change working out for you?
Good summary:
ERHC ENERGY PROVIDES OPERATIONS UPDATE
July 10, 2014
ERHC Energy Inc.
ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued an update on the company's progress.
Last week, ERHC and the National Petroleum Agency of Sao Tome and Principe (ANP-STP) have concluded the final terms for the production sharing contract (PSC) for EEZ Block 11. The PSC contains three exploration phases spread over an eight-year period. The work program in the first four-year phase commits ERHC to purchase and re-process existing data and then carry out an aeromagnetic survey over the block. ERHC is also committed to acquiring 2,500 km of 2D seismic data during the first phase.
If, after the completion of Phase 1, ERHC chooses to continue its exploration work program, Phases 2 and 3 will last two years each with a well commitment during each phase.
As was the case in Kenya and earlier in the Joint Development Zone, management's intention is to bring a technically and financially capable operating partner onboard. The company's discussions continue with several international oil companies about partnerships in EEZ Block 11. Some of those discussions are on the possibility of a “right-to-earn” partnership where the operator commits to carrying only one aspect of the work program in return for a predetermined interest in the PSC if the results of that aspect convince the operator to commit to the rest of the work program.
The PSC for EEZ Block 11 will become effective in due course following the receipt of certain legislative and administrative approvals and the official Portuguese translation of the PSC.
Regarding the company’s operations in the Republic of Kenya Block 11A, the 2D seismic program covering approximately 1,000 line kilometers on Block 11A is nearing completion. BGP, the international seismic company, is carrying out the survey on behalf of the CEPSA and ERHC partnership on the block. Based on all collected data, ERHC and operator CEPSA will determine whether to acquire 3D seismic or proceed directly to drilling. Upon completion of the 2D seismic program, CEPSA and ERHC will have satisfied the minimum work program requirements for the initial two-year exploration period under terms of the Block 11A PSC.
Regarding the Republic of Chad Block BDS 2008, ERHC is in active discussions with potential partners who may be interested in farming into Block BDS 2008, which helps to spread the risk of exploration and is an important component in the company's fundraising strategy. Additionally, ERHC is issuing a series of convertible notes as part of its previously announced comprehensive fundraising program. Proceeds from the issue are being applied to funding the company's exploration work program in Chad, among other obligations.
As announced earlier, ERHC has awarded a contract for acquisition, processing and interpretation of gravity/magnetic data of BDS 2008 in Chad to Bridgeporth Ltd. The agreement calls for Bridgeporth to fly 4,720 line kilometers over BDS 2008. The administrative approvals necessary for Bridgeporth to begin work are being pursued.
Regarding the Oando Energy Resources investment, ERHC holds a small stake in Oando Energy Resources (TSX:OER) as a result of a strategic investment in Exile Resources, which was later acquired by OER. Management is closely monitoring the company's holding following consent of the Nigeria Minister of Petroleum for OER's acquisition of ConocoPhillips' Nigerian upstream oil and gas business. It is possible that, if completed, the acquisition may have a positive impact on OER's market valuation and, therefore, on ERHC's holding.
http://www.ogfj.com/articles/2014/07/erhc-energy-provides-operations-update.html
I'll take "we are encouraged" at this early stage to be a very good sign the block has potential! Next words I want to hear is "we are fast tracking an aggressive drilling program ". Newsworthy events should get even more interesting now, Chad, EEZ and JDZ to boot! Well done ERHC! Turned a lost block into a 39 million dollar investment from IPIC via CEPSA, no easy *feat!
*an achievement that requires great courage, skill, or strength.
synonyms: achievement, accomplishment, attainment, coup, triumph; undertaking, enterprise, venture, operation, exercise, endeavor, effort, performance, exploit
Ill take shares please, no credit necessary. lol
Krom, really its simple man, the seismic is good if they are going to drill.
OT Pan-African Ecobank: Kenya Upstream Oil Segment Needs $16 Billion of Investment by 2017
JULY 29, 2014
By George Mwangi
Special to DOW JONES NEWSWIRES
NAIROBI--Kenya's oil exploration and production sector needs more than $16 billion of investments over the next three years according to a report by pan-African bank, Ecobank, released last week.
Ecobank said Kenya is expected to join the league of oil producing countries in sub-Saharan Africa by 2017, despite funding constraints, rising insecurity and a pending new energy law.
U.K.-listed Tullow Oil (TLW.LN) and its partner Australia's Africa Oil Corp. (AOIFF) are expected to submit afield development plan by 2015, following their first oil discovery two years ago in Turkana county, northern Kenya. The two oil companies estimate that their blocks possess between 600 million and 1 billion barrels of oil and could produce between 100,000 and 120,000 barrels of crude oil a day starting in 2017, if the government approves their field development plan by fourth-quarter 2015, the report said.
Other firms such as U.S. Independent Anadarko Petroleum Corporation, Canadian explorer Rift Energy and U.K. Independent Tower Resources are among several other oil companies also looking to acquire new seismic data and drill exploration wells in Kenya.
"Inability to source necessary funding is however likely to result in oil companies having to relinquish some portion of their oil blocks due to inability to meet seismic and drilling commitments," the report said.
"More importantly, it could delay the start-up of oil production by another one, or two years."
Tullow Oil risks being over-extended on borrowings if it takes on additional debt to develop its Kenya oilfields. However, it is likely to attract valuations as high as $452 million for a planned farm-out of a 10%-15 % stake in its Lokichar basin blocks.
Kenya is likely to pass a revised petroleum law in October 2014 that is expected to provide the framework for oil revenue management and could increase the government's take from oil operations and enforce more local content initiatives.
The report said that communities in the oil discovery areas have intensified their demands for involvement in the industry, which could result in community development levies being included in the new bill.
Rising insecurity is also a major concern in Kenya for oil investors. "Recent attacks by Al-Shabaab could dampen investor interest," the report said, and offshore exploration could also be affected by an existing maritimeborder dispute between Kenya and Somalia.
"These dynamics make the next 18 months critical in the development of the Kenyan upstream sector," the report said. Kenya is likely to play a key role in the emerging East Africa oil and gas industry with a new export terminal at Lamu and a crude oil pipeline enabling oil exports to Asia, it added.
Write to George Mwangi at realtimedesklondon@dowjones.com
(END) Dow Jones Newswires
That maps not only shows the rift in 11a but all trends leading right to the black blob. Nice, good find Longtimer. Hope its accurate!
Focus on the current good news.
Peter has gone on record saying:
Quote:
Our preliminary studies indicate that there might be a significant cretaceous play in Block 11. Basically, we’re talking about something similar to what we’ve seen in the Jubilee Field offshore Ghana. That’s what our geophysicists have concluded based on the spot seismic that currently exists. There are definitely structures that they see, which form a cretaceous exploration play.
The total proven reserves of the Jubilee Field is currently about 2 billion barrels of oil. It is in a much smaller area:
Hopefully we find oil...
Whats to the West of 11A ...thorny bushes, http://en.wikipedia.org/wiki/Kaabong_District#Overview
North:
"ERHC 's block has the potential added value of being on trend with the Cretaceous Rift which has Sudan's 6 Billion Barrel Oil fields."
Unfortunately the area south of that leading toward our 11a block is only known for minerals. Rocks. Mining. and tough old goats. Our best hope is the eastern side of 11a & maybe deep Sw corner IMO. http://www.miningweekly.com/article/south-sudan-is-medium-term-frontier-of-choice-for-randgold--ceo-2014-02-06
That being said, thats why we are exploring no one really knows. Hopefully we find oil...lots of it. Glad we have CEPSA.
Seems we have emotional exuberance and results anticipation, NOT seismic leaks, YET....
Things really heating up in Chad..
http://www.linkedin.com/jobs2/view/17563554?trk=jserp_seo_page
Slap the ask Cowboy!
3D can help pin point, hopefully we dont need it.
We longs are grateful for the chance to recoup our losses.
The senior geologist I know doesnt like 3d, in most cases its too expensive and too limited in its scope. If they cant use other tools to pin point its an option, but by then if conventional things dont add up its usually a waste of money.
Im not selling my 15 yr old stock till 50 cents or greater or bankruptcy whichever comes first... lol.
Like I said we will see the news before it hits officially but one week doesnt make a trend like im talking about.... if the trend is up for another week say... 14 - 15 cents we may have leaks of good seismic or strong partners in EEZ and CHAD, Gods is in control HIS will AND Peters will be done AMEN....
Thanks king. ..here's wishing same report on 11B.
Save some slaps for tommorrow.
“These initial results from the seismic programme are very encouraging in that the extent of faulting in the basin suggests the possibility of structural traps both within and at the edges of the basin.
Since Block 12b is contiguous with our Block 11A, I find this initial report very encouraging.
Umbra most would agree 14 years of exploration and renegotiating is long enough to finally get a break! Whats this give time ... time crap. lol
They've definately: "Gone instead where there is no path" - hopefully we will leave a well worn new path. EEZ too!
Swala Energy Limited (Swala) is pleased to provide an update on the 2D seismic programme underway in Block 12B in Kenya. Swala has a 25% equity interest in the block. The other Joint Venture participants are CEPSA (with a 25% interest) and Tullow Oil plc, the Operator, with a 50% equity interest.
The seismic programme over Block 12B has been completed and the preliminary interpretation of the results is positive. A total of 350km of 2D seismic were acquired over Block 12B. The initial results based on preliminary processed data indicate the presence of large-scale faulted structures across the entire basin, together with the presence of shallow volcanics, a feature of the East African Rift System. Initial results, supported by the Company’s earlier reinterpretion of available legacy data, suggest a Neogene basin with possible 3,000 metres of sedimentary fill.
The Joint Venture participants shall now complete the reprocessing and interpretation of the data before deciding whether to proceed into the third year of operations.
Dr. David Mestres Ridge (CEO) said, “These initial results from the seismic programme are very encouraging in that the extent of faulting in the basin suggests the possibility of structural traps both within and at the edges of the basin. We look forward to updating the market once the reprocessing and interpretation of the data has been completed which should give a robust understanding of the trapping potential.”
For more information about related Opportunities and Key Players visit East Africa Projects
They certainly have had plenty of time to find a partner. Time to get this project lit too. Then we can find oil in Chad, Kenya and EEZ, possibly the JDZ if we ever get the drill bit deeper.
Whoever is "slapping the ask" keep it up and dont go on vacation, please.
Two weeks of this up action and we have our good news before its released officially.
Has there been one exploratory well in Sao Tome EEZ waters? How can the media make such ignorant statements and assumptions. Every JDZ well encountered oil and gas, its only a beginning.
Makes good sense Opus, your opinion is valued, I agree!
Seems they have mentioned many times they are in advanced talks in EEZ and given the lack of cash in the bank, its only logical they wouldnt have gone forward with an obligation on block 11 unless they had secured (90% sure) a great partner. The certainly would release a 100 million dollar news obigation with out someone wait to wrote a check. Personally I think the EEZ is the real game changer for ERHC and has the most potential mid-long term prospects with large quantities or oil of the highest quality.
Drilling soon in EEZ is HUGE guys, 100 million means action in Sao Tome finally, Im betting CEPSA has the cash.
SAO TOME (Reuters) - Houston-based ERHC Energy Inc will invest around $100 million on exploration and development of one of its blocks offshore Sao Tome and Principe, the company's president said on Thursday.
ERHC signed a 28-year production sharing agreement with the National Petroleum Agency (ANP) on Wednesday for block 11, which lies in the central African island nation's exclusive economic zone (EEZ).
"The company will spend about $100 million on seismic studies and drilling on the block," Peter Ntephe said.
ERHC also has a 100 percent working interest in block 4