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Certain smaller owners may be trying to work a exit without commiting to the drilling program, selling their percentage to someone like SNP
brez, the withholding of drilling results might be a barganing chip in negoations with eel about their 2 100% blocks. EEL has first two choices STP has third choice and we have 4 & 5. EEL will need to partner with someone and SNP has knowledge of the JDZ drilling that might make their choice better. No inside info just speculation, if SNP wants access to four 100% blocks chosen first they may be negoating with EEL.
Homeport what about STP pick in the first five blocks. Could they award there pick from the first three blocks to the STP oil company who could partner with Sangol/Galp & have the number three choice from the 19 blocks with no fee.
Gambler, additionally, unlike the other companiesyou list, ERHE does not have any liability untill Addix anounces a commercial find. If Addix dosen't develop we don't pay.
dat, actually last year Soros admitted to congress in hearings to making 8 billion speculating on oil alone. Who knows how much he made elsewhere.
Dat, the articles say 3 & 6 billion us dollars, not nigerian. Crome is a empire. The reason he can play hardball with Exon and the chinese is he dosen't NEED the money. I am sure he WANTS a big payout and won't settle for less than his minimum on ERHE.
Troy, I have always thought it significant that Offor admits to having a net worth of 3 billion and the financial services estimate about twice that - it has always raised the spector of secret partners & fronting for othe officials who can't or don't want to be known.
I have always enjoyed a good conspiracy.
mid, I don't think there has been a time since SNP got involved with this investment that there has not been a buyout discussion going on. More to the point is how much discussion and how close are they to the same set of numbers. I think there has not been a meeting of the minds as to value yet. There may never be or there may be tomorrow. We won't find out till it happens, if it does.
I believe OML 291 hasn't been drilled yet, that was the property close to the JDZ that Addax has to drill a test well in by september. The fact that the fourth Pathfinder well was drilled at Oki east instead of OML 291 makes me believe they really found something.
The government has 15,000 surrendered milliants to find jobs for to keep them from rejoining the rebelion. If they don't the whole program is going to end up where it started. I expected the government to come up with some job training programs & think the presidents illness has interfeared with this plan. I believe that the companys purchase of the well test company is based upon this. I also believe the government is going to give lease owners incentives to drill more wells and provide more good paying oil industry jobs, both programs ERHE can take advantage of. Who knows more about making money off the Nigerian government than SEO.
Look at the Ibox all % for blocks 2, 3 4, 5, 6 &9 are listed there about 3" down from top
if the authorized shares are 950,000,000 no further action is needed to sell the authorized but unissued shares
Thats called insider trading and even the SEC would catch anybody doing it. With the wells drilled and no information released you can bet that the market is being watched
Troy, I believe the authorizer number of shares is 730,000,000 and we have outstanding 722,000,000 so they can issur 8,000,000 without any other action
Ray, I think you missed Troys point, amj wasn't paying attention to anything factual, and shouldn't be bothered by anyone with the facts
My understanding is that SEO's shares were not registered and would have to be before thy could be sold on the market, either over the counter bb. Have I missunderstood the situation?
jbofthecloth, SEO admits to being worth three BILLION, many sources place him at six billion. What matters is what is he willing to spend & what he can get somebody, like the government to spend for him.
The chinese still want Nigerian oil and are going to have to deal with political strongmen if they want to get it.
The situation reminds me of the Japaneese government anouncing who got some airport construction contracts three days before the bidding period closed. Sometimes with political power the bidding is not open and transparent.
We don't know that it hasn't been SNP buying up shares, why make a buyout offer at Offors price when you can acquire at least 5% at a very low price before you make the formal offer. There are three major chinese oil companies, each could buy 5% before reporting to SEC
Share price has to be over a dollar to keep NASDAQ listing, I've had one stock droped from there because there stock price droped under a dollar and did not break over a dollar within a certain time limit.
Mid, it depends on what the qualifications are. It may not be that easy to find a director with a good resume and trustable to do what SEO wants, not what anyone else might think is prudent.
I put in a buy order for 5000 at market 3 minitues before close - it filled at 50.5
Timmer, Offor's shares are not registered and cannot be sold through the regular channels
nh, my understanding was the prime reason the investigation was started was a complaint from the judicial division of Sal Tome, that was denied by both the Nigerian and Sal Torme executive branches.
Mix in the Jefferson/Nigeria influence and the people who had been with ERHC and you have a situation that need a careful look at minimum.
Mike, my read is we have 15% in block 5 & 6 and 20% of block 9. Currently no one else owns any of 5, 6 7 8 or 9. Has this area had seismic ran on it? I haven't seen any maps showing prospects in 5, 6 or 9 and nothing on 7 or 8, have they ever been up for bid & just not purchased?
The contract was for four wells and 120 days minimum, Howerver Addax has a block near the JDZ that has a requirement to drill a well this summer, they could have done the fourth well there, as was they had the rig from august 24 or 25 to January 7, 2010 a total of about 136 days
Being an accountant by trade I can tell you no company the size of ERHC is going to spend 1.5 million in legal fees to keep someone from getting unemployment. If Ledbetter claimed unenployment the effect on ERHC would be higher state unemployment tax payments for the next three years(in Illinois, maybe texas also) but the cost to the companywould be less than Ledbetter claims he paid his attorney. In Illinois a company with only four employees, after lettig Ledbetter go would pay the maximum amount of unemployment on the $12,500 per employee that is taxable per year, so about 7% of $100,000. The rate can go as low as .06% or .006, if they had the lowest rate, we are talking the difference between $600.00 and $7000.00 or $6400.00, for three years. Who is going to pay 1.5 million to save $19,000, no one in their right mind.
Including changing his own numbers from previous posts. There is a magnitude of difference from cost of production of $90.00 to saying cost of $50-60 per barrel. Ponzi these messages don't go away.
There is a difference between saying a fig is expected as early as July 2009, which it was and not knowing the difference between barrel and billoin
The thing I find amazing is that you think anyone would believe anything you post after you have been so obious in your intent.
Cowboy, I might point out that they increased the NASI numbers for Akpo by 50% when drilling for development started and said they may still be 30% low & would be revising numbers as the field developed.
Midtieroil, something that is missing from the picture right now is the Nigerian president and his plans for the delta rehab. I think the company is positioning itself to advantage some programs that are on hold. The delta peace plan includes retraining the rebels and finding them work. To create up to 15,000 jobs in the delta they are going to have to spend some government money.
Buying a well test company and becoming involved in development of marginal properties in the delta could provide jobs and training for retired rebels that would have to be subsidized by the government. 15,000 jobs are not just going to develope on their own, not in the short term, and the skills necessary to employ the rebels have to be taught to them by someone.
Who besides SEO sees this opertunity, I am sure if their are government programs in the pipeline he knows about them.
Troy, as I said when I first started posting, I think Offor has a plan for every occurance. There was a plan (and price) for a pre drill buyout. There is a plan for a post drill buyout ( no doubt with a price matching preliminary findings), there is a plan for post development buyout and there is a plan for no buyout. I think he has all the possibilities covered, he is just not sharing with us what any of these plans, or prices are.
He will lets us know when the plan changes.
I understand these marginal fields make a lot more margin per barrel for the owners because of the new oil laws. They want to encourage two things development of fiellds the majors have seen as too small to invest assets in and development of nigerian oil companies.
John, the audit is certified by an independent Certified Public Accounting firm. The firm has to give the auditee permission to include the audited report in the annual filing. To give that permision the firm is required to read and determine nothing in the management represenations conflict with what is in the financial statements and the notes to financial statements which are representations of management. The firm is also required to be sure all SEC required disclosure is present and complete.
I believe that if a tender offer is made to the company and presented to the stockholders for their vote the SEC cannot do much of anything.
I just voted on a tender for one of my other stocks in December the proxy material said nothing about SEC approval, just the filing had been made and 51% of the voting stock was required for approval. They also stated that if they got more than 50% anyone not tendering would be forced to sell after the company acquired a majority of our stock.
If someone tenders an offer to the company for a buy out & SEO accepts it with his 51%, and the friends of SEO accept, how could anyone stop it?
My take on the situation was they knew they had a big find that would be costly to develop by itself & pulled back to wait and see what showed up in the other blocks. Someone posted a few months ago that all the JDZ drilling info was available to the operators, I don't know if true or not, but it was after Kina either during or right after Limba that chevron announced they were going ahead with phase 2 on block 1.
They may also have only been able to get a rig for one well or didn't want to commit to $1,000,000 per day for a second well till they had a chance to study the results of Obo-1, in depth.
Gambeler, I belive the information posted from one of the small holders of block 1, where the log information came from, said that Obo-1 was not commercial by itself due to the cost of building a pipe system to get the natural gas to market.
I took this as also meaning a FSPO for one well was also not commercial & more costly than a pipeline.
Also, note since we have drilled 4 to 5 wells Chevron has announced they are going into phase two in block one
Not much, but we don't know what they have been told besides there are hydrocarbons. I have heard rumor, from someones post on the board that Oki East is done, but nothing from any official source. I am saying that our attorneys have looked at the SEC rules and determined what is the minimum we have to disclose & got the Addax/Senopec permission to make that minimum disclosure.
For either of them these wells would not be a "material" event & not have to make any disclosure to stay legal. This is why I think all the news, such as it is, is comming from ERHE. Like Midtier said the operator had to agree to allow the minimum legal disclosure.
It may not be what we want to know, but I would bet they(ERHE) knew just how little they could get by with and Senopec agreed to that disclosure, because they had to.
Whats to say that ERHE hasn't met the minimum required disclosure. They have announced drilling, a major event. They have said hydrocarbons are present that the operator is evaluating. If the operator has not said the find is commercial how does ERHE announce it? I believe that our attorneys have done their research and made the minimum required disclosure.
We drilled five wells, we found hydrocarbons that are still being evaluated. At this point Addax/Sinopec has not made the determination of what our find is exactly. There is no more material event to disclose untill the operator says we have evaluated the drilling and this is what we have.
John, the map I have seen shows two geological formations extending from the nigerian coast into the JDZ and ending about where the JDZ blocks end, the area of the JDZ past our blocks apears to be a different structure than the two who thrust out from the delta.
The two formations we are drilling, the east niger delta slope and the frontal toe thrust zones end at where the bottom (southwest border) of block 9, 7 and 8, the rest of the JDZ that hasn't been bid yet apear to be past these formations we are currently drilling as does the EEZ. Am I wrong in thinking these areas would be a different geology from the costal formations?
Troy, there is also the STP 100% block from the first three choices that is not known to be committed to anyone yet. If SNP wants any chance at that they had better keep STP happy. With us and Oando SNP would have a chance at the first five blocks without any bidding at all.