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John, when they say the output of Akpo is 80% condensate are they meaning 80% condinsate 20% oil or 80% condensate 20% gas.
And didn't you say condensate is worth more than oil?
Balance, if Malanza will be done in a few days and Deepwater is not leaving till January 1, what will it be doing for the next five weeks? If its not drilling the fourth well what are we paying $600,000 per day for?
Pup said the 8 1/2 in pcasing will be drilled in two or three days anfd the Deepwater is going to another company january 1st. What is going to be happening in december if not a fourth well?
Don't take anything I say as gospel, I may have missinterpeted the whole thing. The guy I heard this from worked on rigs in the gulf and I may have put two and two together and come up with five. He may have been talking about two different jobs and I put them into one. The main topic of our conversations was grape growing supplies.
Thats why I ask so many questions
John, thats why I ask if they were considered floaters. I knew some of the Jack up rigs used in the gulf of mexico were "floaters" but they were all shallow. If they are buying 6 floaters they are planning on some serious drilling
John, can "floaters" drill deepwater prospects? Is a floater different than the sedco 702 or simular?
My opinion is that SEO knows anything the JDZ officials know, which is everything. He does not have to have any special treatment from the company. He is there and so are all his political & business connections.
Thanks John, that would put them a lot closer to the minimum spending level. If 45,000,000 is 60% then they have already hit $75,000,000 and would be putting more money out for a third well.
I had not guessed the other costs would be (40%) that much more. Another detail to add to my education.
Balance, Kina-1 took about 40 days if Malanza takes five weeks as predicted that will be 75 days @ $600,000 = 45,000,000. Their minimum commitment is 53,000,000 so they would have to give the JDZ 8,000,000 if they don't drill a third well in block 4, if it only takes 28 days like Lemba thats 7,000,000 more, it only cost 16,800,000 to drill Lemba. So a third test well in block 4 could only cost $1,800,000
I believe Bomu was August 25 and Kina was August 27
wzebra33, I don't believe so. It would take 88.3 days at $600,000 per day. Kina took less than 40 days, even if the current well takes five weeks as forcast they nwould not be up to 88 days.
Yanke Mike posted this earlier, it has a link to the contract
Kownski: The 3rd well in Block 4 is optional...
On March 14, 2006, a subsidiary of the Company, Addax, and several other oil and gas companies (collectively, the "Contractor") entered into an exclusive production sharing contract with the Nigeria-Sao Tome and Principe Joint Development Authority ("JDA") to conduct petroleum operations in Block 4 of the JDZ, where Addax serves as operator. The term of the production sharing contract with the JDA is twenty eight years consisting of a three-phase exploration period and a development and production period. The contract requires minimum work commitments to be performed during the eight year exploration period. 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, to a minimum total depth of 3,500 meters subsea, process existing 3D and 2D seismic date, conduct AVO attribute analysis, acquire additional geochemical, structural restorations and/or sequence stratigraphic analysis and perform geological and geophysical studies. During the next two years, or Phase II, the Contractor is required to drill another well and acquire additional seismic data. During the last two years, or Phase III, the Contractor is required to drill another well. The Contractor is required to spend at least $53 million in Phase I, $16 million in Phase II, and $16 million in Phase III. If these minimum financial commitments are not met, the Contractor is required to pay the JDA the difference between the commitment for the then current Phase and the amount actually expended in petroleum operations for such Phase as liquidated damages. The Contractor may, however, terminate this contract at the end of any Phase provided it has fulfilled its obligations relative to that Phase. The Contractor is required to post a performance bond in an amount equal to its minimum financial commitment for each Phase, to insure its property and to obtain liability insurance. The Contractor has a right to produce all commercially viable hydrocarbons discovered and may be granted a series of twenty year extension periods until the hydrocarbons are economically depleted.
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D06%2D010261%2Etxt&FilePath=%5C2006%5C03%5C16%5C&CoName=ERHC+ENERGY+INC&FormType=8%2DK&RcvdDate=3%2F16%2F2006&pdf=
Acording to a Rigzone article there are 88 drillships to be completed in the next year. 2/3 of them are already committed to Brazil either by purchase or lease.
Stocks, the JDZ contract calls for one well in blocks 2 and 3 (bomu & Lemba) and three wells in block four, by march of 2010.
Deepwater Pathfinder has drilled Kina and currently drilling Malanza. The original target anounced for the drilling was Kina South. I would think they would drill somewhere in block four to keep from paying the JDZ a penalty.
The contract says the third well is optional based upon results from the first two but I haven't seen what results "from the first two wells" would make it optional.
She was convicted of conspiracy and obstruction of justice and making false statements to a federal investigator and she settled the insider stock trade case - without the trade there would have been no case to loose or settle
After a highly publicized, five-week jury trial that was the most closely watched of a wave of corporate fraud trials, Stewart was found guilty in March 2004 of conspiracy, obstruction of an agency proceeding, and making false statements to federal investigators and sentenced in July 2004 to serve a five month term in a federal correctional facility and a two year period of supervised release (to include five months of electronic monitoring). [13]
Stewart agreed in September 2004 to begin serving a five-month prison term while her appeal was still pending. In October 2004, she reported to Alderson Federal Prison Camp in West Virginia. She was released on March 4, 2005, after which she was placed under electronic monitoring for an additional 5 months.
Bacanovic and Waksal were also convicted of federal charges and sentenced to prison terms.[14][15] Stewart also paid a fine of $30,000.[16]
In August 2006, the Securities and Exchange Commission announced that it had agreed to settle the related civil case against Stewart. Under the settlement, Stewart agreed to a five-year bar from serving as a director, or as the CEO, CFO (or other officer roles in which she would be responsible for preparing, auditing, or disclosing financial results), of any public company.[17] In June 2008, the UK Border Agency refused to grant her a visa to enter the United Kingdom because of her criminal conviction for obstructing justice. She had been planning to speak at the Royal Academy on fashion and leisure indust
Tapco, what I was trying to point out was that having heard the information or "leak" was not a problem, the fact she traded with inside information is what sent her to jail, for something like $43,000, she could be carring that much in shopping money.
Tapco, she was given insider information and traded on it
emdyal, they ststed in PR that they stoped 1122 ft short of TD
The offer on 3com actually works out to $7.90 per share
John, one of Marks post from his JDZ source said several sand pays, maybe its all sand
It would depend on porosity & quality of hydrocarbons found but some of the recent wells, I think at Jubilee, only anounced 45 feet of net pay.
Sinopec sure dosen't want to be left out of the EEZ because ST&P is mad at them for not releasing the well data, if it will raise bid prices.
I would think they will do everything they can to be on their good side, the chinese are not afraid of spending money & they have probabily seen the seismic data on the EEZ.
Everything I have heard about Obo-1 was that it was non-comercial because it didn't have enough gas. 45 meters of net pay should have been a producable well.
I couldn't find it just now but somewhere on rigzone it said the crew of the Deepwater Pathfinder was either 240 or 260
John, I was assuming a plug at the end of the rat hole, maybe they only do that on shallow land wells, either cement or a metal expandable bridge plug installed permanently.
Oil in the well is worth more than maybe oil in the ground? Thats my opinion and I am sticking to it, thats why we are still under $1
I may not be understanding you, I thought a rat hole was like a dirt leg in plumbing where the casing extends below the pay and refuse is allowed to fall to the bottom of the rat hole to not interfear with working the pay. Have I got terms mixed up?
I was thinking of it in terms of about 120 ft per day of drilling or about $2,000,000 off the whole cost. I didn't know enough about the actual drilling to know about the cement problem. On the wells I was involved in we were just told they set the casing and cemented it in place, no detail on their problems getting it there.
I was thinking about someones post who said they stopped drilling before TD on two of three wells, if you had a really good pay of oil sand and knew the next four hundred feet had not shown much, you would quite and set a plug to protect the pay? Is that what I am understanding?
John, if you drilled one well to total depth and found the zones in the bottom 400 ft were not just unremarkable but worthless would you adjust your depth to just drill the formations that were better, or still hit total depth, at $600,000 per day?
John, does every well drilled let them understand the sismic data they have better on the prospects they have not drilled? or is the only thing that tells them what they really have down there a drill rig?
Basically does the current drilling information compared to the pre drill sismic make the other sismic more reliable/readable?
gasman, the lease is for four wells and will continue till all four are drilled even if it means going into january. Also Lemba was originally anounced as five weeks but started Oct 7 and finished something like oct 29th, only about three weeks.
Also, the oil minister has said the new oil bill will allow the government to reclaim proven blocks on land and reassign them. He especially wants to turn production property over to "nigerian" oil companies because the amount of production controlled by "nigerian" companies has droped by half in the last few years. Who better to acquire these blocks than SEO and bring in Senopec as partner/operator either directly or thru Addax. Crome oil development could be set up by SEO as a nigerian development company.
John, would they get enough information from drilling Kina, Kina South and Malanza to develop a plan for a cluster such as Addax had said the JDZ would be developed as?
I had seen post saying Kina South was to be the second block 4 well but no mention of where the forth would be. Malanza apears to this amature as perfectly positoned to be part of a field with Kina and Kina South and maybe Strat 1. That will have to be later because they are running out of drill ship after Kina South.
emdyal, its from a post a couple of months ago, I wrote it down at the time. I believe it was from someone at Addax.
RKT, I have become aware of the different factions of "deal before drilling" "deal after drilling" "develop a company"and "stay the course". Maybe some I am not mentioning, I have come to believe that SEO sees two courses of action/inaction. Either there is a deal based on drilling results where we are bought out at his price or we sit back and collect the $28.40 per share over our development as oil is sold. Neither one is concerned with share price. If he can't get what he thinks is enough to give up the future income stream now, we will just collect our share of the profits, when oil income starts comming in SP will increase.
John, I think I understand, and the situation could repeat through formation after formation? So all you would hit would be several pays of gas only?
tryoty, I don't think they know what they are doing yet. Management (Offors pupets) are still waiting for which outcome is going to be. I stated before I think Offor has a plan for every contingency, he just dosen't know which one is going to be picked yet. Everything is still fluid and waiting for enough drilling results to make Sinopec make their move & Offor's reaction to their move. Either a deal will be made or we will wait for revenue. I don't see the company doing anything else till either a asset sale is arranged, a buyout negoated or a revenue stream established from JDZ development.
King, why is the bid always at the minimum when I have put in bids for more shares than that myself, more than once. the minimum is the number of shares the MM has to buy or sell at that price. If I put in a buy for 5000 at .62 when the bid is at .61 shouldn't that be reflected?
I know my broker sees open bids and offers at various prices.
emdyal, my conclusion exactly. The company intends to either wait for the big buy out or if Senopec won't meet Offors price sit back and collect our share of the revenue. Basec on the NSAI numbers we are worth $28.40 per share, if we don't get bought out by a number making it worth Offor giving up 9 billion over 20+ years, he just waits for it.
Now that he knows there is oil and gas, and I am sure he knows how much even though the company doesn't share with us, I am sure he knows what he will sell for.
I just wish I knew how much and when, and even if.
RKT, the five wells being drilled are the minimum requirements under the JDZ agreement to complete phase 1 exploration by march of 2010. One well each in block 2 and 3 and three wells in block 4.
Lug, someone about a month ago posted the names of the MM who were always on our stock and the posted some codes they use to communicate with each other. Like what it means to bid .6401 or ask .6402, one of the charters, they can infulence the market by running through transactions. For example if the price starts to rise they run through a couple of buys at a lower price, this makes the last bid & ask their numbers & can bring the market back into their range. Especially when the volume is low.
There was also suspecion they have done naked shorts on some days