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I believe they already have. They moved the second well in phase 2 to the first well in phase 3 as the government permit for the second well was not ready.
Sneak
Dr. J, all I am saying is, just because one oil company drills a dry holes, does not mean that every company that drills and exploration well is "dry" because they do not respond to rumors.
I doubt that TAIPAN drilled a 20" hole to start with and set 7" casing in a "dry" hole.
We have no news to make a definative and qualified outcome of this first well by Cespa.
Let us not forget, this is an Exploration Well first and foremost. In the absence of 3D imagery, the knowledge gained from this well may go a long way in helping them deliver better results going forward.
What was everybody expecting, a 66 million barrels find and ERHE is purchased the following week. One marginal well does not signify a billion dollars jump in share price or buy-in or buy-out.
Let wait for Phase 3 as that would indicate that the results, however poor, was good enough to continue going forward with more exploration Wells.
Just my opinion.
Sneak
Still with that being said, I would rather be on the side of caution. Politically speaking, politics has always been Fuzzy Math at best as nothing is never as it appears to the general public.
They should enter phase 3 and may announce how many meters of pay dirt they discovered in the first well, good or bad. An appraisal well will not be forthcoming on the first well if success until after the second well is complete.
Just my opinion.
Sneak
Yes, I understand that, however looking thru the eyeglass of past U.S. Government intrusion into how ERHE does business, I feel management will still wait for January 2017 to announce or close any buyout that may come forth and enrich the management team.
The U.S. Government does not need clear and complete intent of the law to bring forth allegations of wrong doing that cloud the issues at hand. Just look at thier history of allegations that fell by the waste side.
The false ERHE bribery and corruption charges of the past comes to mind. "ERHE will make an announcement when the time is right".
This is how I see it.
Sneak
Those options are not likely. (Cespa not spending more money on the well or Bankruptcy).
Oh thee of little faith!
The first well could double as an appraisal well and later, a production well when the time is right.
For now, it is just an Exploration Well.
Just my opinion.
Sneak
Who might the suitors be?
SNP
CESPA
KOSMO
TOTAL FINA
All are involved in hydrocarbon properties in the same hydrocarbon holdings.
Just my opinion.
Sneak
Oldoil, Cespa is a private company owned by IPC and will only buy assets that have current value at a good price. Just look at the deal they made with ERHE to be the operator of block 11A. They were desperate to get into one of Kenya's block as operator and did not pay a large premium to do so.
Let see what happens. If there was sufficient hydrocarbon carbon contact in the first well, I feel Cespa will re-enter the to appraise the find.
Just my opinion.
Sneak
SEC rules about Safe Harbor and Insider buying of stock which would otherwise be restricted. One year after purchase.
90 days in the PWC with the Kenyan government.
That is how I see it, I could be wrong.
Sneak
Old oil, no deal or sale until after January 2, 2017.
If CESPA is the suitor, they never buy a "Pig in a Poke", to speak bluntly. They usually do a buying in of let's say 20% to 25% of the value of the company.
They have 90 days to release the drilling results to the Kenya Government. Having said that, even if they found oil, 66 million is hardly Commercial oil.
As for the Chad property, I believe it says with the suitor.
JMO
Sneak
Nothing Nefarious about the current ERHE management team setting up another company on the Toronto Exchange to start up and engage in the same type of business model that ERHE is currently involved in, which is, acquiring hydrocarbon leases and partnering with competent oil exploration companies to achieve value for the company and its shareholders.
That is how I see it.
Sneak
Just remember that the Nigerian government gave SNP a $3.5 Billion dollar Hydrocarbon Royalty tax credit on future hydrocarbon revenues going forward starting in 2016. This was done on the last days of Jonathan Goodluck's administration.
Could SNP be watching the outcome of the CESPA drilling Campaign in block 11A or does this concession pave the way for a CESPA take over of ERHE?
Hmmmmmm!!
Food for thought!
Sneak
Oil, that was 5 straight. You almost got a double hat trick if this was hockey.
LOL
Sneak
Dr. J, it appears to be just more of the media trying to force the release of the Official Drilling Results.
Without the Official Results, the media can only speculate about what the Results may have been or may not have been.
Let's face it, Gloom and Doom sells interest in News Articles.
Waiting for Official News!
Sneak
I am sorry, but I thought I read where the CESPA well was the first well to be drilled in in Kenya for 2016. As for the other wells by other companies, I believe that they were slated for later in the year and that still remains to be seen after all this is Africa.
Please advise if I am wrong as I could be.
Sneak
Cespa has it's poker face on. Just because they did not talk about finding hydrocarbonsomeone does not mean they drilled a dry holes.
It means the news media printed a "Dry Story" aka nothing to report about.
The Cespa well is the only well scheduled to be drilled in Kenya for 2016 and with a second well schedule hinging on the first wells results, all eyes are on the results.
It is like I said, we will all have to wait to see if phase 3 is a go.
Sneak
I agree. This well was exploratory in and of itself.
Sneak
Well it appears that Erhe's Management Team purchased shares with their own money thus counting on Cespa's finding oil.
Looking back one might say their purchase was a pure case of "Irrational Exuberance" in light of the Opinion that Cespa's well was Dry.
I will not believe it until I hear it from the horses mouth!!
Sneak
Oil, after all SEO wanted $10 a share for the company which only had the JDZ and the EEZ.
Now he has Kenya block 11A and Chad to boot.
So everything being equal, he should want 100 x $10 a share. So let find the oil we need to get that number.
Just have some fun! Ooops, I forgot, that is not allowed around here.
Yikes
Sneak
Since, we are dreaming, how about $1,000 if 6 billion barrels discovered in block 11A Kenya.
Oops! I could be wrong, yet again.
Just Dreaming Out Loud.
Sneak
Seek, it was Dec. 16th 2014, just one week after announcing that Deloitte was hired to advise ERHE on financial options, mergers or the sale of some asset or the outright sale of the company.
The first right of refusal came from an IOC that was interested in block 11 of the Sao Tome EEZ. This company wished to remain anonymous unless they got EEZ block 11.
ERHE never elaborated who that company was or if it was Kosmo.
Any thoughts?
Sneak
Seek, who was the compnay that wanted the " First Right of Refusal" concerning ERHE?
Sneak
John drilling 58 Deepwater Wells in the North Sea before hitting Commercial Hydrocarbons is a lot bigger task and expense in rough seas than drilling a few holes in the JDZ.
What was found in the JDZ by SNP is on par with what CVX and Total found in block one.
The economics of continuing with oil prices heading south fast, left SNP to suspend exploration efforts.
Sneak
The East African Rift is as large and on part with the North Sea oil drilling fields.
Do not be discouraged about Exploratory drilling results as it took 58 Exploratory drilling sites to find Commercial oil in the North Sea.
The East African Rift can hold up to 28 billion barrels of oil.
Shhhhhhh! Please do not tell anybody.
Sneak
SNP watching!!!
Just My Opinion, I could be Wrong.
Sneak
I am saying it is ONLY an Exploration Well and All that Implies.
Talking about Commerical Quanities and Appraisal Wells is way to early in the Exploration Process.
Sneak
To state that an appraisal well is required if the first exploration well is drilled and found to have commerical quanities is totally misleading as the contract was written long before any drilling sites were known.
The fact that the first well drilled expect to find just 66 million barrels is hardly of commercial quanities. It was an Exploration Well to grasp a better knowledge and understanding of the area to be explored, plain and simple.
Sneak
Dr. J, shhhhhhhhhhhhh!
Tell them nothing. Leave the miserable to their own Misery.
Sneak
Seek, No, I do not know pup.
Sneak
Just in time for the start of the Phase 3 Exploration process in block 11A.
Just My Opinion.
Sneak
Seek, www.ipic.ae is the link. IPIC owns Cespa.
Keep up the good work Seek.
Have a Great Evening.
Sneak
Seek, the company is Cosmos Energy and it is a Japanese compnay.
Sneak
Cosmo and Cespa are partnering in acquiring leases in Kenya. Cespa's Parent company has a 21% stake in Cosmo.
Sneak
The Current ERHE Management Team is listed, However private ownership is 10% or more. the question is who owns the Lion Share of stock which could be a Controlling Factor!
With all the different CN participants, I wonder if they have sold there shares.
Just My Opinion, I Could be Wrong Again!
Imagine that, Wrong Twice in One Day! LOL
Sneak
oldoil, I have been in this stock for almost 18 to 19 years. I should be eligible for Parole Soon! LOL
Sneak
ERHE had about 768 million shares outstanding.
SEO had about 43% or about 330 million shares.
ERHE's management team bought about 154 million shares.
Chrome buys an additional 90 million shares.
CN's sold pre reverse 2.012 billion shares.
Non management, existing shares holders and new share holders unrelated to the CN bought about 800 million shares
Additional 12 million sold post reverse.
Total 42.12 million shares.
SEO controls 4.2 million.
ERHE's management team owns 1.54 million shares.
Non management, existing and new shares holders unrelated to the CN own 12.38 million shares.
Who bought or controls the 24 million of the 42.12 million shares?
Sneak
Looking for an October Surprise!
Just My Opinion, I could be Wrong, Yet Again!!
Sneak
Mushrooms will always stay in the "Dark" when it comes to information as far as I am concerned.
Good day little shroom!
Sneak
Then sell if you are uncertain of the Future while you still have a chance.
I for one continue to buy!
Sneak
Once again, the board is full of self appointed "Lincoln Lawyers" with all the personal gravitas one could expect from individuals who think they know everything, but in fact know Nothing as they are legends in the own Minds.
To each his own!!
Sneak