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I know we have hope and faith and a darn good rumor.
CEPSA
Compañía Española de Petróleos, S.A. (CEPSA) leads an industrial group made up of over 11,000 people, whose core activity is the refining of crude oil and marketing of petroleum products.
The company additionally has a strong petrochemicals division that is tightly integrated with the refineries, and is also involved in other energy-related businesses, such as oil and gas exploration and production, natural gas operations and electric power generation and sales.
CEPSA has been in the market for almost 80 years. Thanks to its flexibility and ability to adapt, CEPSA has become one of the leading companies in its sector in Spain. Through the progressive internationalisation of its activities, it also has business interests in Algeria, Brazil, Canada, Colombia, Egypt, Panama, Peru and Portugal, and sells its products all over the world.
ALL EYES ON SOUTH SUDAN AS KENYA, UGANDA PUSH FOR LAPSSET CORRIDOR PROJECT
Source: The East African
East Africa’s ambitious plan to boost its oil supply infrastructure enters a critical phase this week as Kenya and Uganda float a design tender, while South Sudan decides whether to build a pipeline through Kenya or Djibouti.
On Monday, the presidents of Kenya, Uganda and Rwanda — meeting under the auspices of the 3rd Infrastructure Summit in Kigali — are expected to receive a progress report on the planned crude oil pipeline under the Lamu Port South Sudan Ethiopia Transport (Lapsset) corridor project.
Sources said President Uhuru Kenyatta and his Ugandan counterpart Yoweri Museveni are keen to see the project take off ‘‘in a matter of months.” It has emerged that after the Kigali meeting, Kenya and Uganda are to jointly float a tender for the design of the pipeline.
“For Kenya and Uganda, the proposed pipeline is becoming an immediate necessity. Government officials have been given strict timelines. The two countries are under pressure to get quotations,” said a Kenya oil executive familiar with the matter.
“Uganda is desperate to get a route for its oil just as Kenya is. For South Sudan, it has already dealt with its most pressing problem by using the old Khartoum route to export its crude. What it is looking for now is a security option that would give it a bargaining alternative.”
The pipeline is expected to run 1,500 kilometres from Hoima near Lake Albert in western Uganda to Lamu port on Kenya’s Coast. The project is expected to be commissioned by 2017, when the two states are projected to officially join the league of oil producing countries.
Lapsset
However, it is unclear whether South Sudan will be part of the pipeline at the initial stage.
On August 28, in their second summit in Mombasa, the three presidents had directed government officials to ensure that the South Sudan-Lokichar-Hoima crude oil pipeline is integrated into the Lapsset corridor project by December 31. At the Mombasa meeting, South Sudan’s Minister for Foreign Affairs and International Co-operation Barnaba Marial Benjamin represented President Salva Kiir.
The EastAfrican has learnt that a $3 million feasibility study commissioned by South Sudan, on both routes — to Lamu and Djibouti ports — done by the German-based engineering firm ILF and the UK-based legal firm IDP, has found both technically viable, but the government is due to consider the cost, terrain of each route and geopolitics of the region.
“By the end of October, the result will be presented to the leadership for a decision,” said Gatwech K Thich, director of pipeline unit at the Ministry of Petroleum and Mining. “The leadership will make a decision on which route they want to take based on cost, the distance, and all other factors that influence the construction and the operation of a pipeline,” he said.
The decision has presented a headache for Juba for while a pipeline to Djibouti makes a stronger economic case, its deep diplomatic connections with Uganda and Kenya — both of which helped it in the fight for Independence as well as in the negotiations with Sudan — make it hard for it to ignore these two states. Further, the country is eying admission into the East African Community and a choice of Djibouti would not further this cause.
READ: East Africa’s future: The pull of the north
“The government is in a dilemma. It needs a short and less costly route on one hand, but on the other hand there are friends it does not want to leave abruptly,” said a senior government source who asked not to be named.
Kenya will be keenly watching the developments in South Sudan given the impact any decision would have on plans to develop a corridor connecting Kenya to that country.
The decision adopted by Juba could either complicate or make the case for Kenya’s planned $22 billion Lapsset project, as part of its economic feasibility was pegged on the existence of a pipeline from Lamu to South Sudan. The decisions, analysts and government officials said, could have a far-reaching impact on the shape the region’s energy infrastructure will take.
http://www.trademarkea.com/all-eyes-on-south-sudan-as-kenya-uganda-push-for-lapsset-corridor-project/
Or, Shorters are covering and ERHC is collecting cash and finding billions of barrels of oil this year with a very wealthy motivated partner. Are you pessimistic by nature? This is a whole new oil play, wildcat exploration, agreements take time, wish them luck. Very exciting opportunity, sure beats no new properties, the stock would be at 0. These guys don't give up! Thats a sign of a eventual winner.
Some one call CEPSA right now and ask them if they want to partner up in Kenya, Im tired of waiting on Peter, Peter he's eating pumpkin or something.
fyi- IPIC - (Cepsa parent company) does business with Emirates National Oil Company (ENOC) IPIC is a Abu Dhabi’s state-owned fund, International Petroleum Investment Co (Ipic)& Sonagol all one happy family.
Dubai, China Sonangol sign MoU to build oil refinery
September 30, 2013 RECORDER REPORT
Dubai has signed a memorandum of understanding (MoU) for China Sonangol International to build an oil refinery to reduce the Middle East financial hub's reliance on imported fuels, the government said on September 26. "With upstream and downstream oil and gas operations in Asia and Africa, China Sonangol will bring its expertise and resources in mobilising the project consortium," a Dubai government statement said.
"The refinery will seek to ensure the sustained supply of refined end products for the emirate's future energy consumption while further augmenting Dubai's export portfolio." Dubai-based Noor Investment Group will act as the financial advisor to Dubai's Supreme Council of Energy on the project, it said, without giving any indication of the expected cost or the capacity of the refinery.
Dubai, part of the United Arab Emirates, a federation of seven Gulf emirates, produces very little oil and relies on costly imports of gasoline and Iranian light oil to feed its bustling international airport and a growing number of cars on its streets.
The Dubai-government-owned Emirates National Oil Company (ENOC) loses hundreds if millions of dollars a year because it is obliged by federal law to sell gasoline at less than the international market price it has to buy it for.
China Sonangol has several oil production projects in Angola and one in Indonesia, but it is not clear if the MoU includes Angolan oil being shipped to the Gulf.
It was only in 2012 that Tullow and Africa Oil struck the first oil in Kenya. This makes a commercial production timetable of 2014 and export goal of 2016 an amazing success story and puts Kenya leaps and bounds ahead of its neighbors. With a string of successes and money pouring into the country from major oil companies -- over $100 million in deals have recently been announced -- Kenya's risk/reward ratio is tipping heavily into investor's pockets.
Given the intense competitive enviroment all around Kenya it seems unlikely we will have to sub-par anything. Quite the opposite, I would guess there are several companies fighting over ERHC's blocks. Time will tell.
You have to admit ERHC has a gift for being in the right place at the right time, they just need a partner to find BIG oil. Again Stanford blindsided 3000+ accredited top tier investors, that doesn't count.
JDZ was red hot and now Kenya even hotter!
http://www.trending.co.ke/the_big_winners_in_kenyas_oil_-301047391.html
Peter used Cove as an example of what ERHC wants to do in his latest presentation. Cove Energy was acquired in February 2012 for £1.22bn by Thailand’s PTT Exploration and Production, after a bidding war with Shell.
http://beforeitsnews.com/energy/2013/10/a-focus-on-east-africas-junior-oil-and-gas-companies-2451730.html
Noble? The company has signed an agreement with WellTest Integrated Services Ltd. through its subsidiary ERHC Energy Nigeria Ltd. It partners with various oil and gas companies. The company has an agreement with Noble Energy International Ltd for the production sharing contract.
New Market Report Now Available: ERHC Energy Inc. (ERHE) - Oil & Gas - Deals and Alliances Profile
2013-10-01 12:21:41 - New Energy market report from GlobalData: "ERHC Energy Inc. (ERHE) - Oil & Gas - Deals and Alliances Profile"
ERHC Energy Inc. (ERHC) is an oil and gas exploration company. It acquires, explores and develops oil and gas properties in Africa. The company has Production Sharing Contract on Block 11A in northwestern Kenya with Republic of Kenya. It also has interests in three oil blocks Block BDS 2008, Manga and Chari-Ouest Block 3 in Republic of Chad. ERHC has interests in six of the nine Blocks in the Joint Development Zone of about 200 km off the coastline of Nigeria and Sao Tome and Principle. The company has signed an agreement with WellTest Integrated Services Ltd. through its subsidiary ERHC Energy Nigeria Ltd. It partners with various oil and gas companies. The company has an agreement with Noble Energy International Ltd for the production sharing contract. ERHC is headquartered in Houston, Texas, the US.
http://reports.pr-inside.com/new-market-report-now-available-erhc-r3816144.htm
ERHC Energy Exploring in the Right Neighborhood; Adjacent to Recent Ekales-1 Well Discovery
IN 360 ARTICLES / BY ENERCOM / ON OCTOBER 7, 2013 AT 6:04 PM /
ERHC Energy Inc. (ticker: ERHE) is a publicly traded American company with oil and gas assets in Sub-Saharan Africa. Over the last two years, ERHC has acquired exploration blocks in Chad and Kenya to complement its existing offshore blocks in the Joint Development Zone offshore São Tome and Principé.
In a recent update, ERHC reported preparations were still underway for Bell Geospace to acquire an airborne Full Tensor Gravity Gradiometry (FTG) survey of ERHC Energy’s Block 11A in northwestern Kenya.
OAG360 Comments:
An FTG survey has been accepted as “step one” for many exploration and production companies operating in West Africa, or other areas with expansive acreage blocks. The key is to first identify the structural mapping of prospective hydrocarbon basins. The process requires an aircraft that flies dense grid flight lines to measure small changes in gravity that are caused by minute changes in density of subsurface rocks and local geology. After receiving the results, ERHC will then gather 2D seismic data in order to estimate the locations of resource deposits and geometry of geologic structures prior to drilling.
OAG360 would like to draw readers attention to the proximity of ERHC’s Block 11A with Tullow Oil (ticker: TLW) and Africa Oil’s (ticker: AOI) recent oil discovery in Block 13T of Kenya – the Ekales-1 well. As we’ve reported in the past, Kenya sits at an interesting position at the intersection of two major rift systems – the Cretaceous Central African rift system and the Tertiary East Africa rift system. ERHC is pursuing the same kind of rift margin play that has yielded major discoveries in neighboring Uganda as well as recent large discoveries in Kenya to the east of its Block 11A. ERHC believes the proximity and in-trend relationship of the Lotikipi plain – the main surface feature of Block 11A – with the Ekales-1 and Twiga South-1 discoveries in Block 13T as well as the Etuko-1 and Ngamia-1 discoveries in Block 10BB, suggest a high prospectivity for hydrocarbons.
Source: Africa Oil, ERHC and Tullow Maps
Exploring All Possibilities
As we discussed in our previous write-up titled, ERHC Energy Flying High in Kenya; Airborne FTG Survey Commencing, the airborne gravity acquisition was expected to commence this summer. We remind readers ERHC is still in negotiations with an international operator interested in farming into the Block 11A following the letter of intent entered into in May 2013. Airborne surveys covering more than 2.95 million acres is not cheap – ERHC is likely waiting to confirm its farm-in partner and receive approval from the Kenyan government before proceeding with the survey.
ERHC reported back in August, after the share rights offering, that with the subsequent filing of the S-1 registration statement, ERHC intends to pursue other fundraising possibilities. The options include registered direct offerings to new investors and convertible notes and other debt instruments. Concurrently, ERHC is continuing to work to farm-out a portion of the company’s assets in Kenya, Chad and the São Tomé and Príncipe Exclusive Economic Zone (EEZ) to spread the risk.
Focusing on Kenya, if the Kenyan government rejects the farm-in partner, or the farm-in partners backs out of the deal, we believe ERHC could have a few other options to consider.
First, the company could explore for a different farm-in partner in Kenya, although given the long lead time on an option like this, the likelihood of a second farm-in candidate may be remote. Further, should the company successfully execute a farm-in agreement in Chad, the company may receive sufficient consideration to execute G&G programs in one or both countries.
Second, given ERHC owns acreage blocks is in one of the most active basins in East Africa and the emerging hydrocarbon province in Chad, would a third party conceivably become interested in ERHC at the corporate level? .
Third, via investment bank, ERHC could pursue other offerings to new investors, convertible notes or other debt instruments, in order to address market concerns about funding its G&G program.
Final Thoughts
ERHC is likely pursuing initiatives to fund the company’s exploration programs in many ways. In the company’s second quarter filing, it was disclosed the company has $4.6 million cash on hand. Assuming the company uses the same amount of cash each quarter, we calculate ERHC’s burn rate to be approximately $975,000 per quarter; clearly the management team of ERHC Energy must be pursuing potential funding gap solutions in order for the company to move forward with its exploration programs in Kenya and Chad.
To sum up our thoughts, we reference a paragraph in regards to ERHC’s initiatives from a recent 10-Q: “These initiatives may include any transaction or series of transactions in which one or more capital providers (existing or otherwise) commits debt capital to the Company, purchases equity of the Company (or securities of the Company convertible into equity), or alternatively funds the Company either directly or through farm-ins, farm-outs or other arrangements in which the capital provider earns an interest in oil and gas properties of the Company.
There is no telling what creative financing arrangements Peter will come up with, anything is possible at this point. What if, as part of a farm-in, buy-in deal, ERHC offers Cepsa millons of shares in return for developing Kenya and Chad. Hope they want the shares.
Remember Cepsa wants Kenya in a bad way. 2011
"Two major European oil exploration companies have protested that they are unable to access Kenya even as the country emerges as the latest frontier in the ferocious global battle between Europe and China for oil resources.
The EastAfrican has learnt that the two European companies, Compania Espanola de Petrolas (Cepsa) of Spain and Sweden’s Lundin International, have both lodged complaints with the government."
http://myafrica.wordpress.com/2006/10/09/east-africa-kenya-gifts-six-key-oil-blocks-to-china-2/
Your right Umbra it (10Q) was a professional well prepared document. There has to be a lot of deal making and negotiating going on in Spain, Saudi, China Sao Tome etc... I think we will all be breathing a big sigh of relief before the employee options expire. Seems there are some key meetings in early November. You might say the airbourne gravity survey isnt as urgent or a major concern anymore. They have much bigger financial concerns to solve to develop all these blocks. GLTAL. Shorters have had their day now its the longs that will benefit.
I suggest all investors review it. http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9454878
Lets overnight a hair dryer to Peter, Im hoping the .75 cent options are a Reality...Dec 7th was vested date right?
Dest Golf, We wouldnt even know about the potential farm-in partner if it were not for this BBoard, so go play golf for a week try to lift your depression and come back and feel better. NO reason to blame management when all they are doing is trying to find oil in a globally competitive market. Seems they have landed not only a very wealthy partner but a motivated and long time follower of Kenya. Cepsa can buy us easily.
11,000 employees and 60 billion in the bank with Saudi connections! You should be jumping with joy! Go play 36 holes. gltal
40 cents by Halloween = my prediction - Trick or Treat - 80 cents by Thanksgiving.
The best-case scenario is one when volume surges without an accompanying surge in price. That typically means the buyers of a stock are more aggressive than the sellers. And once they take out the last shares the sellers have, the price just pops. It is difficult, if not impossible, to time the minute of the day when the stock will make its move. But when you see this combination of sideways price movement, an increase in volume trends, and an increase in on-balance volume, that typically means the stock are heading higher.
It's also a good sign when a share-price jump is joined by soaring volume or if declines occur on low volume. The idea is that light volume signifies little urgency, so a share-price decline probably wasn't the result of any major bad news.
CNPC improved its environmental practices: building an incinerator to destroy waste and purchasing 40,000 goats FOR LOCALS and 5000 new Dodge Ram trucks for the locals to transport sludge collected during the drilling process and goats. All villagers get new Mercedes and jobs cleaning up after the Chinese.
Seriously GUYS, WHY IS THIS STOCK NOT AT 15 CENTS NOW!!!! IT SHOULD DOUBLE VERY DAY TO A DOLLAR!
IPIC Said to Seek Bank Financing for Fujairah Refinery This Year
By Anthony DiPaola - Mar 25, 2013
This planned refinery is close to the new Kenyan pipeline East port.
International Petroleum Investment Co. plans to approach banks this year to finance an oil refinery at the United Arab Emirates’ largest port outside the Strait of Hormuz, a person with knowledge of the plans said.
The Abu Dhabi-owned fund, known as IPIC, appointed HSBC Holdings Plc (HSBA) as financial adviser for the project, said the person, who asked not to be identified because the information isn’t public. The person didn’t say when the company would raise funds or how much it would seek. HSBC declined to comment, and IPIC didn’t have an immediate comment when contacted by telephone today.
Oil producers in the Persian Gulf are expanding refining capacity to meet domestic demand for fuel. IPIC plans to build the refinery at the port of Fujairah in the U.A.E. sheikhdom of the same name. Fujairah is the only of the U.A.E.’s seven emirates with a coastline fully outside Hormuz, the oil-shipping chokepoint at the mouth of the Gulf.
The 250,000 barrel-a-day refinery project may cost $4 billion to $5 billion, Khadem al-Qubaisi, the company’s managing director, said in July. MEED magazine reported IPIC had awarded the mandate to HSBC on March 14.
IPIC said in November it was considering funding options including non-recourse project financing for its Fujairah plant and another facility planned at Duqm in neighboring Oman. Together with state-owned Oman Oil Co., its partner in the Duqm refinery, the company may seek bank advisers for that project later this year, said the person.
To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net
This Cnooc performance speaks volumes about their exploration expertise. They just gave up Kenyan Oil Gold cause they dont know what they are doing!
Perhaps Sinopec has the same handicap?
If this turns out to be TRUE and it sounds very possible! Our shares should skyrocket and the Xmas options are game on!+++++
THANKS FOR SHARING MROMO
Amazing wealth of information from JImbo and Farrell to name a few.
Great job guys! Dam the JDZ "titanic" and full speed ahead to Kenyan Gold!!
The Big Winners in Kenya’s Oil Debut
And with the 100% success rate for drilling in Northern Kenya so far, there is reason to be optimistic.
Kenya leaps and bounds ahead of its neighbors. With a string of successes and money pouring into the country from major oil companies—over $100 million in deals have recently been announced—Kenya’s risk/reward ratio is tipping heavily into investor’s pockets.
By James Stafford | Thu, 17 October 2013
Kenya will start pumping its first commercial oil next year and begin exporting in 2016, but this is just the opening salvo: new discoveries in recent months and fast-track new well development make Kenya the darling of East Africa from an investor’s perspective.
Kenya is set to soar past Uganda, which discovered oil much earlier, but is now having a hard time getting it out of the ground and into the market. And the next five months should bring not only news of the first commercial output for Kenya, but new commercial prospects coming online.
As the discoveries pile up for pioneers British Tullow (TLW-LSE) and Canadian Africa Oil (AOI-TSXv), the plan now is to escalate development and further the pace of exploration, while a third winner in this scenario—Taipan Resources (TPN-TSX)—is set to benefit enormously by owning acreage right next to the pioneers’ high-reward prospects.
Related article: China Hopes to Dominate Africa by Boosting Trade Via Indian Ocean
Tullow, in partnership with Africa Oil--made the first discovery in western Kenya just last year, and in total have discovered more than 300 million barrels of oil equivalent resources in Kenya’s South Lokichar Basin, and they are still exploring.
In late September, the duo announced a fourth crude-rich discovery at Ekales, hitting a net oil pay of 60-100 meters. Significantly, this discovery is right between the Ngamia-1 and Twiga South-1 wells that first put Kenya on the oil map, and the reservoir properties are similar. Drilling success here has been 100% and this is the fourth consecutive wildcat discovery in this basin since March 2012.
In the next 12 months we can expect another 12 wells to be drilled along Kenya’s “string of pearls”, and what investors are sure to be eyeing is the fast progress on two new wells--Bahasi and Sala--being drilled by Tullow and Africa Oil. These wells—targeting 700 million barrels between just the two of them—are in eastern Kenya, and this is where Taipan is.
The catalysts here for Taipan are increasing by the day.
The Bahasi is a 300-million-barrel well that was spudded earlier this month and should be completed around December this year. Upon completion of Bahasi, Tullow and Africa Oil will start drilling the Sala well, which is a massive 402-million-barrel prospect.
This spreads the discovery net wider, and Taipan is eagerly eyeing the results because both new wells are right next to their own Block 9 acreage, so a hit for one here means a hit for all. They’re all targeting the same geology—the Tertiary part of the Lower Cretaceous.
Africa Oil and operator New African Global Energy also expect to spud the highly prospective El Kuran well this month. El Kuran is just to the north of and on trend with Taipan’s Block 1. It’s a low-risk prospect because there has already been a discovery and it’s really about testing commerciality and flow rate.
Related article: Repsol Confident the Next Shale Boom will be in North Africa
And with the 100% success rate for drilling in Northern Kenya so far, there is reason to be optimistic.
For Taipan, there are plenty of other catalysts as well, including a farm-out agreement earlier this month for 55% of its Block 2B with Premier Oil Investments Limited, which will cover the cost of drilling and testing its Pearl-1 prospect. The drilling campaign should be in place by the second quarter of next year. A lot of information on geology will come to light—before Taipan drills--from the Bahasi and Sala wells.
It was only in 2012 that Tullow and Africa Oil struck the first oil in Kenya. This makes a commercial production timetable of 2014 and export goal of 2016 an amazing success story and puts Kenya leaps and bounds ahead of its neighbors. With a string of successes and money pouring into the country from major oil companies—over $100 million in deals have recently been announced—Kenya’s risk/reward ratio is tipping heavily into investor’s pockets.
By. James Stafford of Oilprice.com
http://oilprice.com/Geopolitics/Africa/The-Big-Winners-in-Kenyas-Oil-Debut.html
Oil Reserves
“Until recently, Kenya had no known commercial reserves of petroleum. However, in January 2012, Tullow Oil, an OIEP, spudded [the] Ngamia I well located [in the] Lockichar area within Tarkana County,” the draft energy policy said. “By May 2012, Tullow Oil had discovered crude oil with a total pay zone of 100 m (328 ft) between depths of 850 m (2,789 ft) to 1,515 m (4,970 ft).”
Oil reserves in the Lockichar area are estimated at nearly 368 MMbbl, Africa Oil CEO Keith Hill said in a Sept. 5 article published in Kenya’s Daily Nation. These volumes exceeded the maximum for “commercial development,” he said, projecting the area could have more than 1 Bbbl. Africa Oil has been exploring the area with Tullow Oil.
As of May 2012, 30 out of 46 blocks had been licensed to 14 exploration companies which are conducting exploration activities, according to the draft. Of the 16 remaining blocks, 13 have expressions of interests from nine companies.
The entry of major foreign oil companies such as Anadarko, BG Group, Total, Tullow Oil, Africa Oil, Ophir, and Apache has been a major boost for Kenya’s petroleum exploration activities, the draft said.
“Further petroleum exploration is being undertaken both onshore and offshore in the country’s four major sedimentary basins at Lamu, Mandera, Anza, and Tertiary Rift with a view to discovering commercially viable deposits,” the draft said
http://www.epmag.com/Technology-Regulations/Kenyas-Energy-Bill-Delays-Oil-Licensing-Round_124406
If you cant be excited about the news all around our assets, then you shouldnt be posting here.
Its very likely the Chinese are our partners, as I speculated years ago. Sinopec is probably using ERHC valuable local influence to gain key assets, hopefully its a win win. They might have hinted at a buy-out of all our assets IF they like the new ones. At least that's the play we've seen and add a general disreguard for lack of funds in the coffers. Might be the big picture here. All IMO
BTW everything here on this board is just opinions, I don't see any reason to say it over and over.
ERHC WATER BOTTLING COMPANY. Any chance our rights in 11A include water???
These water resource documents were just completed 2 months ago? This might be the cause of delay in ERHC plans? There might be some useful geological data for hydrocarbons already available from this and other previous work?
http://static.squarespace.com/static/51fb69b8e4b0f037266dae95/t/522f8a5de4b06bf96fa56dbd/1378847325889/Turkana%20Survey%20Report.pdf
"using the Turkana
groundwater as a reliable, sustainable supply of water, for
example, by exploiting only the annual recharge volumes
so that the principle reserves are kept untouched. For the
first scenario (Column 5), the objective is to sustain the
normal rate of national water consumption (87 m3/yr/pp),
including water for all economic sectors. Used in such a
way, some 39.4 million people could be served every
year.
As a comparison, the second scenario (Column 6)
considers the goal of sustaining only human life, ie.
supplying 15 L per person daily over a year. It turns out
that if the aquifers were utilized for humanitarian purposes,
then over 625 million people could be served in a year. "
Thanks, Yes, very promising data, it looks like we are in the best block of them all. Cant wait to see this company hit the international spotlight. We have all earned it!
Seems there may already be excellent satellite iformation in our Block
http://static.squarespace.com/static/51fb69b8e4b0f037266dae95/t/522f8a5de4b06bf96fa56dbd/1378847325889/Turkana%20Survey%20Report.pdf
Page 75
data collection :
Seismic surveying:
Additional seismic shot lines (2D) with greater density
than those lines shot by Shell Company in 1992 (eg
TVK4 and TVK5). Note: The Bolen Company, which
is currently exploring for oil in Lotikipi and around
Lokichogio, may be planning or implementing
Raw data collection Page 18
The overall methodology for the study began with the
collection of reliable data inputs. These “raw materials”
include unprocessed satellite imagery, secondary maps
and data, primary field data and datasets from RTI’s own
proprietary database.
RTI has acquired multi-seasonal, multi-sensor untreated
radar, optic and topographic imagery of satellites from a
number of international civilian space programmes. In
addition to remote sensing data, a significant number of
hydrogeological data has been collected, mainly from
academia, the Government of Kenya, UN agencies and
non-governmental organizations. RTI has also procured
un-interpreted seismic data and exploration reports from
the oil industry and the National Oil Corporation of Kenya
(NOCK). UNESCO procured primary vertical electrical
sounding (VES) resistivity data in targeted locations.
Other data was collected as a means to test the validity of
the findings of the survey (discussed in “Testing and
validation” section below).
In addition to the above, RTI and UNESCO collected
valuable primary data directly from the field, including
hydrology, hydrogeology, geology, stratigraphy, pedology
and land use.
It only rains 7 inches a year but they now have Water Wealth!
http://inhabitat.com/huge-underground-water-aquifer-discovered-in-drought-stricken-kenya/
Excellent report here!
http://static.squarespace.com/static/51fb69b8e4b0f037266dae95/t/522f8a5de4b06bf96fa56dbd/1378847325889/Turkana%20Survey%20Report.pdf
Reserve estimate by the petroleum consultancy Gaffney Cline and Associates puts the total prospect at 28 billion barrels in East Africa as a whole.
http://www.aeonmagazine.com/nature-and-cosmos/peter-guest-turkana-oil/
Into the frying pan....
Predicting Africa’s Next Oil Insurgency: The Precarious Case of Kenya’s Turkana County The recent discovery of oil deposits in Kenya’s Turkana County could increase insecurity in the region.
ARTICLE | 13 SEPTEMBER 2013 - 3:23PM | BY RED24
http://en.wikipedia.org/wiki/Turkana_County
Kenya's Turkana County. Photograph by Filiberto Strazzari.
Political scientists remain divided on the link between natural resources and armed conflict in Africa. One school of thought suggests that competition over the control of resources is itself a motivation for the development of armed insurgencies. Others – opponents of this greed-based theory – suggest that control over resources serves as a mechanism to correct economic and political inequalities. But all agree on one thing: there is a positive relationship between the availability of lootable resources and armed insurrection, and this is particularly the case where populations have been marginalised.
Nigeria’s oil-rich Niger Delta follows this pattern - the Delta experienced a protracted insurgency against the region’s hydrocarbon industry due to the negative impacts of oil exploration and the question of profit distribution. The conflict occurred in a context of ethnically-motivated violence and a burgeoning small arms trade, leading to the rapid militarisation of the region.
A 2009 amnesty agreement formally brought an end to the Niger Delta conflict and, although the peace remains tenuous, the frequency of violence, kidnappings and terrorism has decreased. As a consequence, the world's attention has shifted towards the impending East African oil boom. Most vested stakeholders have focused on the potential geopolitical benefits of the boom, but fail to address the potential impact these resource discoveries could bring to areas already experiencing acute socio-political and economic marginalisation.
A case in point is Kenya’s Turkana County. Located at the meeting of Kenya’s blurred borders with Ethiopia, Uganda and South Sudan, Turkana County is an arid region, long neglected by successive Kenyan administrations. However, in recent months, Turkana County has become a key area of interest for the Kenyan government and investors alike following reports that British-owned oil exploration company, Tullow Oil PLC, discovered an estimated 250 million barrels of crude oil there.
While resource extraction is not expected to begin for several years, the Turkana oil finds have been celebrated. Oil revenue is seen as a solution to poverty in the region, where nine out of ten people live below the breadline. But behind the optimistic rhetoric, the prevailing political and security environment in Turkana County is looking conspicuously similar to that which sparked insurgency in the Niger Delta. If left unaddressed, we could potentially see the region become a theatre for oil conflict.
Corruption and exclusion
If history in the Niger Delta is anything to go by, it is far from guaranteed that the population of Turkana County will benefit from the potential oil revenue. The existence of corruption has already been raised. During a two-day consultative meeting held in the regional capital, Lodwar, in June 2012, community leaders accused local officials of illegally acquiring title deeds, misappropriating community-owned land and using intimidation and violence to displace communities within the region’s oil-rich Ngamia 1 and Twiga South-1 localities.
Equally scathing accusations against Tullow Oil were made. The company was accused of failing to publicise Environment Impact Assessment (EIA) reports, paying insufficient compensation to communities and bribing local councillors and leaders as a means of securing control of resource-rich land. The meeting also identified economic exclusion, accusing Tullow of outsourcing basic services and expertise, denying jobs to local people.
Both the Kenyan government and Tullow Oil have rejected these allegations and committed to greater transparency to ensure local populations can see concrete benefits. However, until commitments have been realised, mistrust and scepticism will remain.
Environmental impact
The potential for further environmental degradation in already fragile ecological conditions is a key concern for those living in the oil zone. An estimated 60% of the region’s inhabitants are pastoralists who have long struggled with seasonal droughts, which led to the deaths of thousands of livestock.
The situation has deteriorated significantly over the last decade and it is estimated that 75% of the population is reliant on food aid. Projects are ongoing in the region to promote the diversification of economic activities, thus limiting dependency on the livestock trade; however, lack of infrastructural development continues to serve as a significant impediment to such initiatives.
While the hydrocarbon industry will undoubtedly produce marked improvements in infrastructure, this is likely to be counterbalanced by the unavoidable ecological impact of oil exploration. Dwindling reserves of fertile land will be appropriated for mining activities, and risks of air, soil and water pollution are significant.
While the government is quick to assure that mechanisms will be in place to offset any adverse ecological effects, environmental degradation is likely to lead to communal antagonism toward the region’s oil industry and, as witnessed in the Niger Delta, could contribute to armed civil insurrection within Turkana County.
Small arms proliferation
Although based in deep-rooted grievances, the role small arms proliferation plays in fuelling internal armed insurrection cannot be overstated. Again, the Niger Delta serves as a timely reminder. In the early-2000s, a thriving small arms trade developed as light weaponry flowed readily over the porous borders of Cameroon, Gabon and Guinea-Bissau. The subsequent militarisation of ethnic groups within the Niger Delta would later serve as important vehicles of the violence directed against the region’s oil industry.
In Turkana County, the availability of light weaponry has been identified as playing a critical role in sustaining communal conflict. An estimated 50,000 small arms are already in circulation, created in part by neighbouring conflicts in South Sudan and Uganda’s Karamoja sub-region. Growing land and resource scarcity has significantly increased tensions, leading to frequent and protracted outbreaks of violence.
Organised crime
For some in Turkana County, access to weaponry has become the only means of socio-economic survival. Organised and well-armed gangs regularly engage in acts of criminality, usually in the form of cattle rustling and highway banditry. If left unchecked, such entities may pose a significant security threat to the region’s future hydrocarbon industry.
As was witnessed in the Niger Delta, oil production has the propensity to support a thriving criminal enterprise. Oil bunkering, the process where oil is siphoned illegally from pipelines, remains rife within the Niger Delta and it is believed that as much as 7% (an estimated 150,000 barrels) of Nigeria’s crude oil is stolen daily. Revenue from oil bunkering is often pumped back into armed groups.
As these groups expand, incidents of oil bunkering become more than an auxiliary threat to the oil sector. Rather, actions escalate into more direct threats, including terrorism, sabotage and kidnapping for the purposes of ransom and extortion.
Oil and water
It is not just oil that lies beneath Turkana County. Recently, massive water reserves have been discovered in the region. Many believe this water wealth could provide the solution to water insecurity not just in the drought-blighted regions in the north, but for the entire country.
With both water and oil drawing all eyes to Turkana County, government and commercial stakeholders must act now to ensure the recent discoveries are to the benefit of local populations and to prevent the region becoming a focal point for a resource-driven conflict.
Socio-economic development must come first. Forthcoming oil sector legislation needs to promote development and put the needs of the local population - and particularly the new hopes for the elimination of drought - above those of the oil industry. In addition, stronger policing and judicial structures within Turkana County will mitigate the need for community self-protection and should be focused on small arm control. For the economic stakeholders, there is a responsibility to ensure that the exploration and exploitation of all of the region's resources is an inclusive process which is subject to stringent controls.
First and foremost, these players will need to manage local expectations by educating affected communities that any potential economic benefits derived from the oil and water discoveries are unlikely to occur overnight. Ultimately, any future industry within Turkana County has to be beneficial to the overall well-being of the region’s inhabitants. If not, communities may very well resort to violence.
By Ryan Cummings, Chief Analyst for Africa for red24.
http://thinkafricapress.com/kenya/predicting-next-oil-insurgency-precarious-case-turkana-county
Think Africa Press welcomes inquiries regarding the republication of its articles. If you would like to republish this or any other article for re-print, syndication or educational purposes, please contact: editor@thinkafricapress.com
Premier Oil PLC : Farm-in to Block 2B, Onshore Kenya
10/15/2013 | 02:42am US/EasternRecommend:
Farm-in to Block 2B, Onshore Kenya
15 Oct 2013
Premier is pleased to announce that it has signed a farm-in for 55 per cent of Taipan Resources Inc ("Taipan") licence interests in Block 2B, onshore Kenya. The block lies in the Southern Anza basin, a Cretaceous rift basin with proven source rock, and contains several prospects and leads. The Pearl prospect with an estimated gross prospective resource of 100 million barrels of oil (mmbbls) will be targeted by the initial well. The remaining lead inventory is capable of delivering in excess of 500mmbbls gross.
Under the agreement, Premier will pay Lion Petroleum Corp. ("Lion"), a wholly-owned Kenyan-based subsidiary of Taipan, back costs of US$ 1 million. Premier will also pay Taipan's working interest share of the cost of drilling and testing the Pearl prospect and future costs on Block 2B up to a cap of US$ 13.275 million. Premier has the option to assume operatorship of any future development on the block.
Completion of the farm-in is subject to satisfactory completion of financial audits and confirmation of the terms of the PSC from the Kenyan government.
Simon Lockett, Chief Executive, commented:
"We are delighted to have reached an agreement with Taipan and obtained acreage in the emerging onshore rift plays of East Africa. Rift basins are a core play for Premier and in this instance we have gained access to a play opening opportunity with meaningful follow on potential."
Map of Premier's interests in Kenya:
Enquiries
Premier Oil plc
Simon Lockett
Tony Durrant
Tel: 020 7730 1111
Pelham Bell Pottinger PR
Gavin Davis
Henry Lerwill
Tel: 020 7861 3232
These big planes fly very low and it would be unsettling to villagers if they didnt know why they were there. As far as land owners, the Gov. would set up a account and distribute from that.
Obviously nothing happens here till oil is FOUND. Its not managements fault oil wasnt found in JDZ the 1st try, at least they got 5 holes drilled. There isnt any reason they cant do it again with these new assets.
Now with Kenya and Chad EEZ (delays) we still have great possibilities! Some of the contigencies they keep talking about may be not only a farm-out but a buy-in from a multinational and that would take some time to get all the countries involved to approve.
I agree but will add ERHC is currently negotiating from a extremely weak position with cash running out in less than a year from now. Their moving too slow. They need the survey done before any final negotiations. If the survery is good they will have MANY companies wanting "in". They should use their own funds from the capital raise to get this done yesterday. The survey is the key to getting the best deal for ERHC, clearly. There are many many ways to structure a farm-out deal prepare for some creativity. Pray the fly over shows promising features.
Lets be clear, this is a high risk high reward company and their CEO just said their farm-out of part of the Company's interest in Kenya Block 11A in northwestern Kenya is going well. If this isnt a buy signal, what is?
Also I never heard we could have sold out to someone after not finding oil in JDZ. Why do we have to hear news this way?
PRESS RELEASE
Oct. 9, 2013, 4:12 p.m. EDT
ERHC Energy Inc. CEO Presents at the Africa Oil & Gas Summit 2013
CAPE TOWN, South Africa, Oct 09, 2013 (GLOBE NEWSWIRE via COMTEX) -- Peter Ntephe, President and CEO of ERHC Energy Inc. ERHE -6.67% , a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today presented, "Exploration: Prospects and Challenges for a Small Independent," at the Africa Oil & Gas Summit 2013. Mr. Ntephe was a featured presenter of the Summit's West Coast Africa Oil & Gas track.
Mr. Ntephe's presentation, which can be viewed and downloaded at http://erhc.com/presentations/, examined the Company's pure exploration model, which builds value through asset prospectivity development.
"As ERHC has experienced firsthand, this model is high risk as it usually involves exploration in frontier areas, but it can lead to very high reward as assets grow in value during the exploration process," said Ntephe.
Mr. Ntephe described ERHC's experiences in the Nigeria - Sao Tome and Principe Joint Development Zone (JDZ), which saw the value of ERHC's exploration Blocks climb in advance of its 2009 drilling campaign, but drop after exploration found no oil.
"We faced a big decision. We could sell at significantly diminished value or start again. We chose to do what this Company does best: identify and secure prospective exploration assets - this time in Kenya and Chad - and set about building value again through focused exploration," said Ntephe.
ERHC's oil and gas exploration interests extend across the African continent, including the Republic of Kenya, the Republic of Chad, the Sao Tome and Principe Exclusive Economic Zone (EEZ) and the JDZ.
He told the gathering that ERHC's previously announced negotiations with an integrated international oil and gas company to farm-out part of the Company's interest in Kenya Block 11A in northwestern Kenya are going well. Preparations also continue for Bell Geospace to acquire an airborne Full Tensor Gravity Gradiometry (FTG) survey of Block 11A. In Chad, in accordance with the PSC, work on a comprehensive Environmental Impact Assessment (EIA) is underway.
The Africa Oil & Gas Summit 2013 was held at Pavilion Center in Cape Town, South Africa
If thats true, then do you own Tullow? Bad, thats a bunch of nonsense and you know it. An exploration company with "current oil production and sales" is not the same as ERHC. Erhc is still in a development mode and thus obviously a wild cat play, higher risk thus also a higher reward. Why do you continue to visit? Apparently ERHC is too risky for you.
Since when did oil exploration become anything other than risky? 100's of companies would love to be in ERHC's shoes right now imo.
They are survivors despite OTC BB B s.