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ERHC EEZ picks
To refresh your memory, here's ERHC's explanation of their EEZ rights:
ERHC's DRSTP EEZ EEZ Exclusive Economic Zone Rights
ERHC retained its exploration rights in DRSTP's Exclusive Economic Zone ("EEZ").
ERHC has the right to acquire 100% working interest in two (2) blocks of its choice in the EEZ, subject to DRSTP reserving three (3) blocks of its choice. There are no signature bonuses to be paid on these two (2) blocks. ERHC additionally has the right to acquire 15% working interest in any two (2) blocks of its choice in the EEZ and would pay its proportionate share of signature bonus on these two blocks.
For simplicity, assuming that ERHC "ranked" the blocks in Choice order and DRSTP had reserved Choices 1, 2 and 3, the percentages and signature bonuses payable in each option pick are as follows:
Option Pick Working Interest Percentage Signature Bonus Payable
----------- --------------------------- -----------------------
ERHC Choice 1 15% 15% of the total
Signature Bonus
ERHC Choice 2 15% 15% of the total
Signature Bonus
ERHC Choice 3 0% n/a
ERHC Choice 4 100% $0
ERHC Choice 5 100% $0
Seems like ERHC did a pretty good job choosing which JDZ blocks to place their biggest percentages without the Chinese. So, I wouldn't necessarily agree with you on that.
On the other hand, it would make sense for ERHC to solicit block interest from potential partners. It would also make sense that Sinopec would have an inside track, since a synergy already exists between them and ERHC in the JDZ. However, based on what happened with the JDZ blocks (initial partners Pioneer & Devon exiting), I could see ERHC lining up several potential partners.
By the way, your last sentence is one reason why I haven't gotten worked up about the nondisclosure of drilling results. There may be sound business strategy involved here. If they were to spill the beans too early (to placate certain vocal shareholders), it could result in more long-term damage than the short-term gain.
The EEZ block selection between STP, EEL, & ERHC is likely turning out to be a chess match. Strategy will be of utmost importance, especially for ERHC, if it ends up having the last two 100% picks. - Longtimer
With some of today's posts, as well as others, these lyrics come to my mind: paranoia will destroy ya.
(Not that I am a fan of that genre of music...)
Yes, that is why I stated, "Dana Gas Inc. would obviously be primarily interested in the gas shows and no doubt that is why they focus on the gas results for Kina", in my post. :)
Good DD on the timing of their picking up of their 10% interest in Block 4. Guess they effectively acquired that when they agreed to purchase Centurian (which held the JDZ interest) on November 12, 2006. - Longtimer
Amen, brother!
Tryoty, in principle, I agree with you.
But things can look clear cut as an armchair quarterback. I (we) don't know all that was going on behind the scenes at the time. Perhaps the Starcrest deal was originally meant for ERHC, and would have provided some more cash. We do know the company was being attacked from all legal fronts. Perhaps the company was just in "survival" mode at that time.
But I'm not going to be an apologist for the company. From an outsider's perspective, ERHC has underperformed relative to some of their peers. Would have loved to have seen that $5 million that is frozen right now put to work.
I don't think ERHC is in danger of running out of cash, as things stand now. Not unless they blow it like EEL. Once they have proven resources on the books, they'll have a base to borrow against, if need be. And there is the possibility of getting funds from EEZ farm-outs.
Offor is not in this thing to lose money. - Longtimer
Tapco, thanks for the reply.
All that you state could be so and plausible. It is true the document is for the period ending 9/30/09, but no doubt it took some time to prepare all the accounting information contained within it. And indeed, the auditor's report filed within it is dated 11/11/09.
So although the financial results are as of 9/30/09, I wonder if Dana's comments on Block 4 could be based on information received after that, while the filing was being prepared. Just a thought, and not one that matters that much. - Longtimer
jb, that's an interesting thought (SEO and friends needing the money), one that had been reported to markgovols some time ago.
Have you heard this from another source, one that is reputable?
If I may offer a counterpoint, I find it hard to believe SEO is in need of money. Is there some indication of that? Also, why would he cash in now, before the full picture is known for the JDZ?
Who said anything about there being one giant field? I happen to be of the opinion that there is NOT one giant field in the JDZ, because of all the faulting.
And that is precisely why Kobiashi's comments are even more applicable. Because, rather than one field, we have five that have to be analyzed and modeled, in deep water, in fault zones. But it's still true that what is learned from one hole could be useful in interpreting another, since the area shares the same geology.
I could only wish that there was one giant field in the JDZ. That would make things so much easier.
But for whatever reason, Midtear, information about the drilling program has not been released, and no amount of belly-aching on your part is going to make that happen. I'm sure there is some strategy involved, whether that be related to being prudent, the EEZ, or some other factor. But for longs, it really doesn't matter, because those details eventually will come out, and when they do, we will be rewarded. Chevron and Sinopec wouldn't be staying in the JDZ if there wasn't something worth pursuing here.
By the way, you never provided a factual answer (actually, any answer) to the following post:
Posted by: ERHClongtimer Date: Monday, February 01, 2010 10:53:26 PM
In reply to: midtieroil who wrote msg# 196989 Post #197067 of 197368
Midtear, why don't you post the exceptions in the contract to which you refer so that we all can be enlightened. Despite your many claims and despite numerous requests for this information, we have yet to see you post anything to substantiate your claims other than your know-it-all opinion.
Rambus, thanks for digging up and posting the link to this information (document dated 9/30/09):
Nigeria /Sao Tome and Principe Joint Development Zone — Block 4
Dana Gas holds a 10% interest in Block 4 of the Nigeria/Sao Tome Joint Development Zone. Block 4 is an extension of the prolific Nigeria deep water play where a number of significant oil discoveries have been made. Based on mapping of 3D seismic, several large structures capable of containing giant size oil fields have been identified.
The Block 4 consortium, for which Addax Petroleum is the operator, has successfully drilled the first well, Kina 1-X. Studies are underway to determine if the discovered gas can be commercially developed from this setting. The second well, Malanza l-X, is expected to begin drilling shortly and will be completed by end 2009.
Dana Gas Inc. would obviously be primarily interested in the gas shows and no doubt that is why they focus on the gas results for Kina. It is interesting that they still mention, "Based on mapping of 3D seismic, several large structures capable of containing giant size oil fields have been identified," even after knowing the Kina 1-X preliminary results. - Longtimer
Good series of posts that all should read, Kobiashi, especially the whiners. Thanks for the information. - Longtimer
Posted by: kobiashi2000 Date: Tuesday, February 02, 2010 4:04:53 PM
In reply to: Strassenheim who wrote msg# 197263 Post #197270 of 197350
You have to put the results in the proper context, those companies that released results quickly, and I doubt it was a week for an offshore deep sea well, but, assuming it was, it was probably for a block that was in acreage that already had a geologic model that had substantial information from numerous wells already drilled, my friend who works for a major O&G company in exploration told me that in unexplored acreage in which their punching wells for the first time, its going to take months and months of analysis, and here we drilled 5 wells, so I'm not surprised at all, like I said, raw data could have been released right away, but they decided not to. Furthermore, he told me that none of these wells were meant to be producers, at this stage each well is purely exploration, and their just trying to figure out the reservoirs that their working in, its the next stage, delineation wells when they'll be looking for producers.
Posted by: kobiashi2000 Date: Tuesday, February 02, 2010 6:51:31 PM
In reply to: petemantx who wrote msg# 197292 Post #197329 of 197350
Its been explained to me that when you're dealing with unexplored reservoirs in extremely technically challenging environments such as this one, just look what they had to do to get Akpo up and running, and we're dealing in similar geology, that you only get 1 shot, and that if you screw it up it can cost you billions of dollars during the life of the reservoir, there is only so much gas, oil and condensate that can be brought up to surface and if you screw up punching the reservoir it can be extremely detrimental by diminishing the amount of natural resources that can be brought to the surface, so you play it safe until you get a helluvah better picture of what you're dealing with, which is why exploration is conducted in phases, with the ultimate goal of getting to production in the later phases, its a 10 inning game, as far as the casing, again my understanding is that the only important casing is production casing, which during an exploratory campaign as ERHC has told us ad nauseum the current round of drilling was, would not have been set. ERHC has stated time and time again, that this round is not about scoring each well an A+ or a D, its about gaining as much geological information as they can about what is believed to be a very large field, but, unfortunately for ERHC mgmt, most of its shareholders either ignore what they say or just don't believe them. lol
Posted by: kobiashi2000 Date: Tuesday, February 02, 2010 6:56:34 PM
In reply to: redinvest who wrote msg# 197328 Post #197330 of 197350
It seems to me we've hit major gas finds and some oil/condensate, I suspect during delineation drilling we'll also get major oil/condensate finds.
The share price has been a lot lower than this and SEO hasn't budged.
Seems like I remember reading somewhere that a least some of these wells were not P&A'd, but sealed. Don't ask me where I read this. Maybe someone with board-searching capability can find it.
Midtear, why don't you post the exceptions in the contract to which you refer so that we all can be enlightened. Despite your many claims and despite numerous requests for this information, we have yet to see you post anything to substantiate your claims other than your know-it-all opinion.
Good posts YankeMike & MiamiDrift for the amnesiacs on this board.
Here is a repost of some events that could happen at any time; but if not, most are sure to happen before the end of this year.
Posted by: ERHClongtimer Date: Saturday, January 23, 2010 3:20:36 AM
In reply to: tamtam9042 who wrote msg# 196068 Post # 196076 of 196944
...There is a lot of potential for good news coming down the pike...:
1. Drilling results revealed (hoping for at least details on pay zones).
2. Phase II exploration commitment for Blocks 2, 3, & 4 announced.
3. EEZ blocks obtained by ERHC.
4. EEZ block farm-out MOUs signed w/more $$$ headed to ERHC's coffers.
5. Drillship contract announcement by Chevron to complete their Phase II well commitment (they only have 1 year left to do this), with Addopec possibly using same drillship thereafter to commence exploration/delineation drilling of their blocks.
6. Execution of ERHC's AIM subsidiary IPO.
7. Follow-through on MOU's related to marginal oil fields.
Most of these events could happen at any time, and with each day that passes by, the probability of their happening increases. - Longtimer
RKT, I think this is a very noteworthy point. After years of delays in the JDZ, I think STP is fed up with the long waits. (Didn't someone from the ANP-STP say that they were hoping to avoid mistakes made with licensing the JDZ?)
In fact, the ANP's "A Strategy Outline for Petroleum Sector in the DRSTP" hints at favoring operators that will get the job done as opposed to those who are willing to pay big signature bucks:
2.2.4 Meaningful work programmes.
The host-country can only achieve success in licensing if it can extract a
commitment from the licensee to carry out a work programme that will either
lead to a discovery or to the acquisition of data that will stimulate the
tinterest of new applicants. In the long term, the value of collecting
high-quality and relevant data is perhaps higher than any signature
or other bonuses negotiated in the contract.
JCanada, your report of possible contract signings for drillship(s) would be in line with expections outlined in point #5 below. Chevron has got to secure a drillship slot soon, or they will be between a rock and hard place to get their required hole drilled within the next year. - Longtimer
Posted by: ERHClongtimer Date: Saturday, January 23, 2010 3:20:36 AM
In reply to: tamtam9042 who wrote msg# 196068 Post #196076 of 196532
...There is a lot of potential for good news coming down the pike, so I don't know how much lower the stock will go before we hear something:
1. Drilling results revealed (hoping for at least details on pay zones).
2. Phase II exploration commitment for Blocks 2, 3, & 4 announced.
3. EEZ blocks obtained by ERHC.
4. EEZ block farm-out MOUs signed w/more $$$ headed to ERHC's coffers.
5. Drillship contract announcement by Chevron to complete their Phase II well commitment (they only have 1 year left to do this), with Addopec possibly using same drillship thereafter to commence exploration/delineation drilling of their blocks.
6. Execution of ERHC's AIM subsidiary IPO.
7. Follow-through on MOU's related to marginal oil fields.
Most of these events could happen at any time, and with each day that passes by, the probability of their happening increases. - Longtimer
Spp, excellent article re "indigenisation".
Surely the opportunities in this direction have not been overlooked by the guiding hand of SEO with ERHC. We shall see if this proves to be the case and how effectively they can sell and run with this idea.
This could be a "perfect storm of opportunity," especially if ERHC could garner more working capital from partial farmouts of its EEZ blocks. - Longtimer
Spp, interesting link. I found noteworthy what was said about the Tweneboa-1 well. After it reached the originally planned TD, they decided to drill nearly 1,200 ft deeper and found more oil. - Longtimer
Tweneboa & Sankofa
The first of two additional discoveries in the area, Tweneboa, is in the Deepwater Tano License, 16 miles west of Jubilee. The discovery, which was drilled by the Eirik Raude semisbumersbile in March 2009, is in 3,766 ft of water.
Initially the well, Tweneboa-1, was drilled to 11,788 ft TD and encountered 69 ft of net pay; however it was later deepened to 12,920 ft and found 13 ft of highly pressured oil bearing sands at 26 degrees API. Tullow, the operator, plans to further explore the area, and just this week announced that the Tweneboa-2 exploratory appraisal well intersected a significant combined hydrocarbon column, which indicates the presence of a highly prospective and extensive turbidite fan system that will be evaluated with additional drilling.
From Offshore Magazine:
Published: Mar 25, 2009
Offshore staff
LONDON -- The Tweneboa-1 well, offshore Ghana, has been deepened to 3,938 m (12,920 ft) and encountered 4 m (13 ft) of highly pressured oil-bearing sands as well as an over-pressured zone at total depth, according to Tullow Oil.
Results of wireline logs, pressure measurements, and sampling show that the well has encountered oil of 26° API, which is independent of the shallower light hydrocarbon accumulation. Near the total depth of the well, an over-pressured zone was encountered which limited further progress, the company says.
Integration of the seismic and well data is ongoing and further exploration drilling will be required to test the extent of these deeper levels as well as the shallower accumulation where seismic indicates sands thicken away from the well location, Tullow reports.
From a Tullow Oil news release:
9 March 2009 – Tullow Oil plc (Tullow) announces that the Tweneboa-1 exploration well, drilled in the Deepwater Tano licence offshore Ghana, has discovered a significant highly-pressured light hydrocarbon accumulation.
The well encountered 21 metres of net pay and was drilled to a depth of 3,593 metres and is currently being deepened to further assess the discovery and the up-dip limit of a potential deeper fan system.
The well was optimally located to penetrate multiple targets, including the edge of an undrilled major Turonian fan system. Further drilling will now be required to test core areas within this potentially giant stratigraphic trap where thicker Turonian reservoir sections are mapped. The upside area of approximately 200 square kilometres includes two de-risked prospective parts, Owo and Ntomme.
From an Anadarko news release:
HOUSTON--(BUSINESS WIRE)--Mar. 9, 2009-- Anadarko Petroleum Corporation (NYSE:APC) today announced the Tweneboa-1 discovery well offshore Ghana encountered approximately 70 feet of net pay. The well discovered a light hydrocarbon accumulation in similar-age sands as the nearby, but separate, Jubilee field.
The Tweneboa-1 well, located on the Deepwater Tano License, was drilled, logged and cased to a depth of approximately 11,790 feet, and is being deepened to further assess additional prospective hydrocarbon-bearing zones. It was drilled using the Eirik Raude deepwater rig in a water depth of approximately 3,770 feet approximately 16 miles west of the Jubilee field.
I am beginning to wonder if the purpose of some here is to stealth bash this company. They seem to continually bring up every negative angle without bothering to do the DD to find answers themselves.
Thanks for posting that, Walldog. - Longtimer
Another way of looking at it is maybe they were waiting until they knew what they had in the JDZ before extending themselves into other ventures.
Regarding Nigerian operators, I will not debate the inherit landmines that come with that landscape. But I don't believe it's SEO's plan to bilk the company in that way. Besides, it would be peanuts to him. There may be some "overhead" with Nigerian operations, but I don't think too many Nigerian players would want to shaft any company associated with SEO.
On the other hand, we saw what happened to EEL, how they bit off more than they could chew (spp119, correct me if I misstate something here) and their troubles with Peak Petroleum Industries Nigeria Limited with OML 122. No doubt ERHC is well aware of what happened there, and mitigating risk is probably one of the reasons they are entertaining the idea of launching an AIM subsidiary.
Caution and air-tight contracts are vitally important in this business.
Midtier, why would SEO shaft a company (ERHC) of which he effectively owns 42.4%? Addax, Afren, Oando all got started by investing in Nigerian marginal fields.
I agree, it is wise to diversify risks, but at this point of the game, with ERHC's cash position, where are they going to find a low-risk, cash-generating investment on the cheap?
If you have any specific instances in this regard (cheap low-risk, cash-generating investments), in view of your broad-ranging expertise, why not inform the company of about them. I'm sure they would appreciate the clue-in.
Yeah, Tamtam, I think negative market sentiment certainly didn't help with the stock price this week, but it also looked like someone was dumping a position today, with the high volume. Let's hope they are finished.
I added twice recently to my holdings of EHRE (once today and once last week). There is a lot of potential for good news coming down the pike, so I don't know how much lower the stock will go before we hear something:
1. Drilling results revealed (hoping for at least details on pay zones).
2. Phase II exploration commitment for Blocks 2, 3, & 4 announced.
3. EEZ blocks obtained by ERHC.
4. EEZ block farm-out MOUs signed w/more $$$ headed to ERHC's coffers.
5. Drillship contract announcement by Chevron to complete their Phase II well commitment (they only have 1 year left to do this), with Addopec possibly using same drillship thereafter to commence exploration/delineation drilling of their blocks.
6. Execution of ERHC's AIM subsidiary IPO.
7. Follow-through on MOU's related to marginal oil fields.
Most of these events could happen at any time, and with each day that passes by, the probability of their happening increases. - Longtimer
Might have something to do with what the overall market is doing also:
Dow industrials' 3-session plunge of 552 points caps index's worst week since Feb. 2009
Ever considered that perhaps one of the motivating factors for setting up the JDZ was to have a lucrative special interest zone in which Nigerian and STP players could profit? It's my belief that there are more Nigerian/STP figures involved with ERHE than just SEO. A guest, if he knows what's good for him, doesn't mistreat the family pet. Just IMHO. - Longtimer
"A major stumbling block was the STP-Nigeria boundary where some of the richest oil fields are suspected. Former President Miguel Trovoada confirmed to us that STP originally wanted to divide the maritime boundary between STP and Nigeria according to the so-called rule based on ‘equidistance lines’ but Nigeria argued in favour of the ‘proportionality principle’ which would have given Nigeria a much bigger share of the offshore acreage. According to Trovoada, STP ‘didn’t have time or money for litigation’ so a compromise agreement was struck during the visit of Nigeria’s President Obasanjo to São Tomé in August 2000. Trovoada stated that the basis of the agreement in Nigeria’s favour was worked out between him and Obasanjo while the finer details were worked out by the STP government and the Nigerians. Instead of delineating a boundary between the two countries, Trovoada and Obasanjo agreed to establish a Joint Development Zone (JDZ) to be jointly administered by the two countries, with oil revenues being split 60:40 in Nigeria’s favour." - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45764858
A solution to the deadlock would be for ERHC to make a deal with Sinopec for its two block choices in the EEZ with the proviso that Sinopec twist STP's arm to recognize ERHC's choices as superceding EEL's in exchange for Sinopec's releasing its drilling results prior to the EEZ bid. Then Sinopec would get its shot at some of the best EEZ blocks even after releasing drilling results.
Just a wild-hair thought. - Longtimer
Midtier, nice summation. That's what I'm hoping for.
However, from the ERHC FAQs, it sounds like they are not ruling out migrating the company to the AIM:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45717358
But really hope it plays out as you state in your message. - Longtimer
P.S.: Glad to see some non-emotive deductive reasoning. ;^)
Tryoty, my thoughts exactly! I was just thinking about posting the same thing.
The press release could have simply read...
"Our seeking to list on AIM represents another important milestone in our progress," said Peter Ntephe, ERHC's chief operating officer. "AIM is one of the world's most successful growth markets and ERHC looks to enhance shareholder value by attracting institutional investors and reaping the benefits of being quoted and traded at the heart of the international finance community in London."
...and it would have achieved the goal of the press release.
But as you note, he prefaced this with...
"After last year's landmark achievements in exploration of Nigeria -- Sao Tome and Principe Joint Development Zone ("JDZ") Blocks 2, 3 and 4, our seeking to list on AIM..."
Yes, "landmark achievements" is not how you describe disappointing results! - Longtimer
It's April 20, 2010; see the FAQs:
http://www.erhc.com/faq/
You know, the more you say lately midtear the more you sound like you are whining.
At least ERHC doesn't whine, which is about the only thing you seem to do about everything ERHC does or doesn't do.
Have you forgotten that undervalued assets can be the best opportunities? Yes, you can get burned if you are not careful, but ERHC is not exactly an outsider when it comes to Nigeria. No risk, no reward. And given their track record to-date, do you think ERHC management is going to jump into something without doing sufficient DD?
Kobi, I agree; it would be a great way to firewall ERHE's GOG assets from its venturing into marginal fields/other investments.
From what ERHC has told us in the past, originally it seems they were going to IPO an investment vehicle on the AIM, which initially would be 100% owned by ERHE. Then, they could issue shares to other investors in that AIM subsidiary to spread the risk and access additional capital.
Under that approach, if something went awry with the AIM subsidiary, ERHC's GOG assets will not be jeopardized, but we ERHE investors would still get to reap the rewards of their new venture.
However, from the EHRC FAQ page, it sounds like whether the AIM IPO will be for a subsidiary or a dual listing is still up in the air. - Longtimer
AIM Listing FAQs
(points of special interest underscored)
Q. Is ERHC’s intention to be listed solely on the AIM or have dual listings?
ERHC has expressed an interest in listing on AIM to achieve enhanced shareholder value, institutional exposure and liquidity, while at the same time providing investors with greater transparency in terms of pricing and execution. You might refer to http://www.erhc.com/en/art/48/ where you can find some of the ideas that are driving ERHC’s interest in listing on the AIM. ERHC is currently working with Stand Hanson and several professional advisory firms to determine whether the corporate goals are better achieved by a dual listing or otherwise.
Q. If there will be a dual listing, does that mean a dilution of shares?
As stated in numerous presentations that addressed the subject (see http://www.erhc.com/en/art/55/ as an example), the idea is to achieve more by accessing an additional pool of capital through the AIM. The Company will not seek to issue any new shares on the OTCBB, AIM or by any other means without first having properly evaluated whether shareholder value will be enhanced by such new issue.
Q. What happens to the shares we are currently holding?
Remember, all shareholders have to be treated equally and any fundamental changes to your shares will require shareholder approval.
Q. Will there be any type of reverse split to get to the AIM?
No reverse split is currently contemplated. In the event the company does at some point find it necessary to pursue this course of action, shareholders will be given adequate advance notice in accordance with law.
http://www.erhc.com/faq/
Based on the job requisites below, it would seem what Africagold's source said is at the very least factual in regard to these two job postings:
Offshore Construction Site Representative (job id 896):
Experience in offshore facilities construction work is essential, especially in the installation of platforms and pipeline laying in shallow water (5 – 15 m), as well as working on facilities expansions where simultaneous production and construction operations are required.
Offshore Construction Site Representative (job id 897):
Experience in offshore facilities construction work is essential, especially in the installation of platforms and pipeline laying in shallow water (5 – 15 m), as well as working on facilities expansions where simultaneous production and construction operations are required.
Here, again, is the link to what his source said:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45607845
Brez, here's the info you requested on when the Addax jobs were posted:
Link for jobs 880-899
Link for jobs 900-914
(Had to do a little "improvising" to produce links to all of the jobs.) - Longtimer
T minus 25 days and counting...
Just a reminder that, at the very latest, Addopec must inform the JDA that it is committing to Phase II exploration by February 12/13. (For details, see the post of which this is a reply.)
Hopefully, ERHC will be able to announce this, even if Addopec does not. - Longtimer
JCanada, thanks for that information.
That answered my question posted earlier.
It's curious that the actual total depth drilled was only given for one well:
Oki East - total depth 12,600 feet below sea level
Malanza 1X - ?
Lemba 1X - ?
Kina 1X - ?
Bomu-1 - total depth of approximately 11,600 feet subsea (announced pre-drilling)
It would have been interesting to compare the actual Kina TD with what is shown on this Addax diagram, which, if I interpreted it correctly, shows they had planned to drill down to a TD of at least 15,000 ft below sea level, according to the scale on the left-hand side.
- Longtimer
Question regarding drilling:
If they drilled down the center of the prospects and hit a lot of gas, would they have reason to stop short even if they thought oil was farther down? Would they come back and drill other well(s) to target the oil? Are production wells for solely either gas or oil, or can both types of hydrocarbons be produced from a single well?
Just wondering if that could be the reason the wells to-date have been shallower. - Longtimer
Regarding Shea's purported conversation with James Ledbetter, if indeed it really happened, Ledbetter's supposed comments about "During exploration, they found a lot of oil. They found gas. But it wasn't enough to develop." could only refer to the results of Obo-1, since Ledbetter was let go long before the current exploration campaign and not privy to its result. Joe does not explain who "they" are, but gives the impression that it is ERHC and its partners of the current drilling campaign. However, the "they" would have to be the Block 1 consortium led by Chevron.
Ledbetter's supposed description sounds more like what we heard about Obo-1.
Whether this story is factual or not, I have seen instances of lower-rung media taking actual statements made by someone, clipping them, and then placing them in a context that gives them an entirely different slant. - Longtimer
Farrell, BTW, good find on the Afren site!
It is interesting that they are still stating the potential for 1 billion barrels in Block 1.
Thought it was worth posting a snapshot:
Afren also states that "Exploration drilling on the adjacent Blocks 2, 3 and 4 is expected in 2009" [which of course, has happened now] "and further drilling on Block 1 will, most likely, commence after the neighbouring drilling activity has been completed."
There is only one year left of the 2-year period of Block 1's Phase II. So Chevron is going to have to line up a drill ship here pretty soon. Something else (drill ship contract) that should be showing up on the radar in the near term. It will be interesting to see if the drill ship is leased long enough to drill in all the blocks. - Longtimer
Likewise, Homeport!