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Gambler, I agree with the time line for anouncing what is in the JDZ. IMO, we will get news because the chinese spent 7 billion on Addax, they have tried to make several deals and did not closed them. They are in need of a win. The anouncement of a big find in the JDZ would give them that. It would allow them to create a news stream keeping Sinopec's name and Addax's in the news for months, if played right.
There is also the fact one of STP first three choices in the EEZ is not promised yet. I have been to Oando's site and they have no deep water experiance & have two of STP's first three picks, I would expect SNP has been talking to them already.
I think the perception of being a winner & suscessful will carry a lot of weight with different countries oil ministries. The twenty three blocks china went after in Nigeria were not gained. The Nigerian oil ministry said they were not willing to walk away from old partners (with suscessful track records)
I have always been in the "deal sometimes after drilling" camp, I don't believe the chinese will buy an unknown unless it is really, really cheap & I don't believe SEO will part with any of our investment for less than what he thinks it is worth. I also think SEO will sit back and collect over the next 40 years if he dosen't get his price for a sale now.
It is one thing that has made me wonder about Offor and Chrome, does he have silent partners? Like I said I have wondered about somebody sources say is worth 6 billion only claiming to be worth half that. Then I am always one for a good conspiracy.
I did a "dogpile" serch on Emeka Offor and found this article from 2005, reprinted in several publications " Emeka Offor: Whose Front is He" by Johnathan Elendu and Sowore Omoyele. They detail a laundry list of deals and politicians he is supose to be connected with. Elendureports.com is listed as a source of their information.
It apears to be a web news site hosted in MI, USA. Elendu was a author of the article.
Bomo, anyone acquiting more than 5% of the shares would have to file with the SEC, that would be in the neighborhood of 35,000,000 shares. Keeping the share price low would allow "friends of SEO" to buy in at a good price before any big news skyrocketed the price. It was also implied that certain nigerians might be holding shares in their name for others. SEO has admitted to being worth 3 billion, Elendureports.com say it six billion, I have always wondered if that was because the other three billion was "not really his" but was somebody he was holding for. I think the lattest company Starcrest Nigeria, is rumored to have other owners who's name cant be on the shares just now.
Second the thought, I have received many answers to questions I would have had to spend hours researching from him.
Krom, don't forget with the economy where it is there are people with capital losses in excess of the 3000 that can be offset aginst ordinary income, who can take their gain , either log term or short and offset their losses and not pay any taxes
Does anyone know how deep Oando, llp pockets are? I didn't see where they have any deep water experiance, mostly trucking, pipelines and refinery. They control EEL and might want Sinopec/addax as a EEZ partner also?
Opus, with Obo-1 we are talking about six wells, Bomu-1, block2, Kina-1 block four, Lemba-1 block 3, Malanza-1 block four and now Oki east.
dat, I also thought of that, SNP could tie up the first five blocks allocated before any bidding. Get two from EEL, one from STP and two from us. The ibox only shows 17 blocks, most without sismic
Mike, I was intending to say SNP would have one block of the first three (from STP's choices) and our two free choices, either by partnering with us or buying us out.
They wouldn't have to bid aginst anyone for three of the top five choice blocks.
Just a thought, the STP has the first three block choices, before ERHE's two free blocks. I understand two of them are pledged to EEL. Could SNP be negoating for the third, dangeling the data release as bait. "Give us the first choice block and we will pay $x and release our drill data to up your siging bonus money"
That would give SNP three of the first five blocks in the EEZ.
I believe the JDZ agreement says the same thing, the operator controls when and what data to release. There is a five year bail out clause, if the operator hasn't released the results of drilling before then the JDZ can do it themselves.
Mike, so we don't know if Oka east is a third drilling required because of the results of the first two wells or an optional third well that was not required but elected. The only option I see for addix/snp would have been to drill in Addix opl block they have to drill this summer instead. They had to book the drill ship or it would not have been available for an optional well.
During the first four years, or Phase I, the Contractor is required to drill at least two wells, with an option for a third well depending on the results of the first two wells.
Mike, I have seen this before but no explanation of what is the "depending on the results of the first two wells". If the results were dry holes they had to drill three or if the results were good? Just what is the trigger to cause the option for a third well to be exercised?
Ray, I go for A
Pup stated they were all six drill rigs/ships
Some stockholders own all their stock threw their broker and all shares are held under one name. Won't this effect the number of stockholders of record?
I have a question for the oil people, am I right to understand that all numbers reported on a field or well are converted from oil gas condensate etc to barrels of oil?
So if Akpo is producing 175000 barrels per day that is the converted figure of oil gas and condensate.
A second question the gas that is reinjected to the field, about 1/3 of daily production of gas is that netted off the daily output?
Mike, I don't think your post was out of line in any way. Jake has done nothing to explain or defend his claim of 3/15. And as for being the "only" one that knows anything about drilling termnology or activities, I can make a list of people whose comments I trust more.
I also believe Mark has gathered as much and as accurate information as he can and has been a service to this board. I have never felt he was trying to make us believe anything for his own gain & has always made a disclamer that what he found out was the best he could discover & verify.
I believe they ran casing, they said they were returning for additional testing at a later date. If they had pluged it they couldn't do any additional tests.
There has been at least one post about a block close to the JDZ where Addax has a well commitment by sometime later in 2010, and speculation the fourth well was going to be drilled there, instead of the optional well for block four.
John, Pup anounced Addax had tendered for 6 floaters for the Gulf, hopefully a few are comming to the JDZ to do just that
John, could directional drilling explain why Oliphant thinks there was more than one well drilled at Obo-1?
And production tubing would not be set till there was something to connect it to, like a FSPO, or actually several FSPO's
John, just to be clear on this, they would always set conductor pipe, they would set intermediate pipe if needed and we are talking about them setting production casing. Setting the production casing is sign they have a producable well they are planning on coming back to.
If they didn't have something they would just plug & abandon the hole, true?
I'd love to some time. Its amazing how much you can learn being involved in somthing like this, and how many things you thought you knew were either wrong or not quite correct.
Sometimes you know half the answer because the people who tell you about something only answer your questions, and you didn't know everything to ask.
Also, there are a lot of things you have learned that you don't know how they happen, I know they set casing on a sucessful well but the actual process is maybe known to me about 5% & nobody had mentioned that drilling past the pay left room for the logging tools to inspect the pay in question. Just figuring out what questions to ask is a educational exercise in itself.
John, do you know how the count the depth when they are drilling off angle? would they count the number of feet or meters they drilled or just the depth they reached
I believe we are seeing just how stuborn SEO can be. If they will not meet his price he will stay arround and collect more from our share of the oil development. I think we have a stand off going on.
John, if they are doing "directional drilling" would it give them much more information about the extent of the formation?
second question, the formations you are talking about in the 650' would they be developed as individual pays or can you make any determination from the info you can see. When your talking "sand" do you mean sandstone between less porus formations?
Yes, I remember, I would expect we would not be charged for "maintenance" time, but was not sure about transit time. It isn't much if the ship is at the GOG but if it was in Brazil a couple of extra $600,000 days would add up.
Jim, my understanding is our contract is for four wells with a minimum of 120 days & if we had taken five weeks per well or 35 days we would keep the pathfinder for 140 days @$600,000 per day.
I am not sure if you can release early and get out of the 120 days but I would not think so. There might be a possibility of selling the days to the next leasor, but I would think that the owner would have to agree & the next leasor would have to expect to need the days, I think the next lease is for more per day.
We did not get the pathfinder when we were scheduled to because it was finishing up another well before comming to us.
John, when they rent a rig for a minimum of 120 days @ $600,000 per day would they not have to pay for the whole 120 days?
Deepwater Pathfinder beguan drilling on 8/27 or 8/26, which would make 120 days sometime toward the end of December by my count. How do the contracts work? When does the charge days start, would it be more than a few days before they spudded the well?
Opus, this "new" law was my basis for believing in a sale upon drilling. I expected SEO to be capitalizing on the situation through Crome or some new entity he started.
He is Nigerian but I don't think his ownership would qualify ERHC as a nigerian oil company. I haven't seen the letter of the law but, the one speach that homeport posted from the oil minister was pointed at the fact the % of oil produced by "nigerian" companies had drastically dropped. It wasn't high to start out and had been cut in half.
I can't see the government giving tax benifits to ERHE intentionally & if ownership changes in these blocks to less than 50% nigerian they loose the block lease.
I expected SEO to change his strategy to take the money from ERHE and build a "nigerian" oil company
My understanding from the previous post is we are talking about 200 blocks like oml 46. These are blocks with proven oil that have not been developed by the original leaseowner but have been drilled and oil found.
These are supose to go to Nigerian owened companies for 50% or more ownership and are not the blocks on leases to major oil companies that the chinese have made a offer on. Those blocks are still in the hands of people like exon and shell and are up for renewal on their 20th year lease. I believe many of thes marginal blocks are in the delta and were not developed before because of security costs vs output.
Someone posted that there are going to be as many as 200 of these marginal fields available in the next "auction"
Maybe we will be competing for several more now the delta problems are quited
I have been wondering how the government is going to find all those former militants jobs - some in the good paying oil industry. Maybe somebody told the company there is going to be job training funds available, one company I know in the states was able to get 2/3 of their first year salaries for a plant that closed & they bought. Which they would have done anyway maybe we will be paid to provide a certain number of militants training and subsidised jobs.
SCC, the contract was for a minimum of 120 days of the deepwater pathfinder at $600,000 per day, the Kina prospect was spudded on 8/26 or 27. Even if we had had it from the 20th of August we are still payiny till December 20. Malanza should be done oe almost done now. I would hope they would use those days we are paying for on a fifth well.
Its in the middle of the Delta, now the settlement has been made they can develop without being shot at.
I am just trying to find money to buy more, while the price is down, most of my buys have been at higher prices. I have one block that averages .77 and one that averages .68
John, next question. If the Agbada formation is the big target would they have angled their drilling when they reached it to determine the extent of the formation? I am not sure I was reading about this right, but would that stop them from drilling deeper if they went to a angle or right angle?