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Q. What steps have been taken to minimize expenses?
The company continues to minimize expenses sharply on all fronts, focusing its resources on the maintenance of its exploration licenses.
Q. With the current valuation, how could a stake in the company be sold for much value?
All parties in the oil and gas industry understand that the underlying valuation of the company is distinct from the market valuation. This is not something unique to ERHC. Many small oil and gas exploration companies have found it challenging to raise funds in the current environment, which impacts market value but does not impact the value of the underlying assets.
I thought that 'D' was gone already for some time. That's why I did not understand. So many things to do besides ERHC, lol.
Just a reminder why they drill:
http://www.fool.co.uk/investing/2016/02/16/does-steadying-oil-mean-its-time-to-buy-tullow-oil-plc-rockhopper-exploration-plc-and-solo-oil-plc/?source=uptyholnk3030001
And... The BADog is back. Whatever he communicates, the fact that he popped up again is a sign that drilling is about to happen, and big price movements are expected.
The Doc.
Why did it go to 6 cents now, is that possibly some convertible notes?
By the way, regarding Tullow:
Tullow does enjoy some low-cost assets, and its TEN field in Ghana should have operating costs of a mere $8 per barrel — although Tullow probably needs oil prices in excess of $40 to break even overall.
http://www.fool.co.uk/investing/2016/02/16/does-steadying-oil-mean-its-time-to-buy-tullow-oil-plc-rockhopper-exploration-plc-and-solo-oil-plc/?source=uptyholnk3030001
Question for the board:
We continue to work relentlessly
The contracting parties have completed over 80 kilometers (50 miles) of access road.
Sincerely,
Peter Ntephe
President and Chief Executive Officer
What do you mean?
From 10 cents to 6, and it says the share price is up...
What's with the 3650.00% share price move up?
i thought we were at 10 cents...?
The Market Can Price Things Wrong
“Price is what you pay. Value is what you get.”
(...)but I was asking a simple question.
SSC,
You are trying to find answers to my question in the share price of a stock.
"Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors."
That sounds like encouraging news for Kenyans and for companies who find oil there(...)
Troy, tell Midtier:
Oil Price Rise To $50 Likely By Q4 2016 As Market Fundamentals Have Not Materially Altered
http://www.forbes.com/sites/gauravsharma/2016/01/22/oil-price-rise-to-50-by-q4-2016-likely-as-market-fundamentals-have-not-materially-altered/#3292f072550c
"As further volatility for the next six months is inevitable, we should not lose sight of one crucial factor in the ongoing melee – oil market fundamentals have not materially altered."
For most non-OPEC plays $60 per barrel remains the optimum price (see chart) while some unconventional plays need a three-figure price. An almighty push by the industry towards operational efficiencies when oil fell to $50 per barrel kept many going, but most are not designed to cope with a drop to $30; a level that is hurting even Middle Eastern producers with far lower labor costs.
And Kenya can produce for $25,- as your article said.
Just think of the implications that can have in the near future, if oil goes up to above $50,-
GO CEPSA.
SSC,
Have you read about the low cost of producing oil in Kenya?
How do you feel?
http://www.standardmedia.co.ke/mobile/article/2000191356/kenya-would-be-among-cheapest-world-oil-producers-tullow-says
This is good for Erhc.
SSD,
I see BKRT has joined fellow diluter VFIN. Both seem to be getting impatient and chasing the price down. Current dilution insurance believers had better step up and buy before the toxic snowball starts rolling again.
The proposed alternative pipeline linking South Sudan to Kenya
Article from before glut oil, but the pipeline will come anyway.
http://www.africanglobe.net/business/uganda-kenya-build-worlds-longest-heated-oil-pipeline/
Kenyan Oil-Pipeline Accord With Uganda Paves Way for Exports
GO ERHC http://www.samrack.com/?p=5762
Oil prices will not stop Kenyan projects - firm
http://www.the-star.co.ke/news/2016/01/23/oil-prices-will-not-stop-kenyan-projects-firm_c1281191
“The current oil price has indeed put pressure on the project, but we do not believe this low price is sustainable. We do not see a major delay to the project as a result of the oil price, our biggest issue is getting the pipeline finalised,” Hill said in an emailed response to questions from Reuters.
Dr. Funkenstein
This looks like it is the "end game" play.
Courtesy Arnim:
The people behind the mysterious Sinoangol firm
http://www.africaintelligence.com/AEM/oil/2016/02/09/the-people-behind-the%C2%A0mysterious-sinoangol-firm,108129302-ART
Anybody forking up the article price? :p
How is this possible, serious interest in the JDZ??? These days???
Conclusions
The history of the oil industry has been one of cycles, from nearly the beginning of the industry in the 1850s through today. In the down cycle that we are currently experiencing, demand rises due to low prices, even as oil producers begin to cut capital expenditures. U.S. shale production has already begun to decline as very little shale oil production is currently profitable. The end result is very predictable, even if the timing is not. While there is broad agreement that a great deal of U.S. oil production is currently unprofitable, some feel like oil prices need to fall further to make a bigger dent in production because crude oil inventories are still quite high. I feel like with the continued growth in global demand, we can already see the supply/demand picture tightening on the horizon. When that becomes broadly obvious, oil prices will again rise, bringing profits to the industry and higher capital spending on new projects. How long that process takes will determine how many oil companies are left standing to reap those profits.
http://oilprice.com/Energy/Oil-Prices/How-Shale-Oil-Will-Survive-The-Crude-Carnage.html
Troy,
WE get diluted again to benefit Offor and restore his position
Some calculations:
Just imagine that you bought, 200.000 shares in ERHC at an average price of 50 cents, before the glut oil/convertible drama occurred:
You paid the fine some of $100.000,-
Those shares are now worth (2000 x $0.10)= $200,-
Thank you glut oil/convertible notes!
But, before you buy a stool and a rope, what needs to happen to break even on your MASSIVE loss?
If you are willing to invest an additional 1% of your total investment right now, being $1000,- the share price needs to hit $10,- (pre RS = $0.10) to recoup your investment, breaking even. Yes, really.
If you are willing to invest $10.000,- at this very point, what does the share price need to hit in order to get your total invested $110.000,- back?
$10.000,- now brings you 100.000 shares (pre RS = 10.000.000).
To break even, the share price needs to 11 fold from here and now:
The price needs to go to $1.10,- (pre RS = $0.011)
Achievable? If oil is found without a doubt.
Also achievable in the run up to oil these days? Yes, it can imo. Certainly if some pre 'news' from CEPSA is disclosed, regarding the drill.
This is where we are today.
The Doc.
A huge P.S = IF the oil price for whatever reason, like it is expected now, goes up to, let's say, $55,- again this year, the willingness to start 'exploring' oil again will be back, i.e. ERHC share price will rise again solely on that better environment.
Chad and EEZ will be more desirable again, hence a new 'future' again for ERHC, even after Kenya.
That is what I meant, the photo *proves* it.
Offor is rich as in r-i-c-h. Maybe he cut them some slack?
Because you forget that Offor himself chose to NOT participate in both the rights offering AND the convertible notes... causing this fall into the abyss.
Agree?
That is what I noticed, hence the question.
I can only conclude that Ntephe is in the drivers seat here and Offor is powerless. That's probably a strange feeling for him, but it is what it is.
and we have convertible debenture holders that will likely be dumping shares on the market as soon as they can get their hands on them.
Troy,
On the bright side, Emeka Offor is publicly shown to be a Gelding, owned by Peter Ntephe.
How else can you describe the situation? The majority shareholder slaughtered by his own CEO and apparently incapable of responding.
Gelding fits. No testicles.
He could indeed be more visible, but it WON'T get us oil.
Troy,
A decade ago ERHC Energy had the attention of the markets. Sadly, that's gone. Fairly recently ERHC's CEO, Peter Ntephe said that he would "excite the market" when the time was right.
According to everything Peter Ntephe has said drilling in Kenya will commence in the next 55 DAYS, yet the only thing we hear from the company is [insert crickets chirping sound]
Quit screwing shareholders and go get a job at Walmart where your leadership skills are more of a fit.
Troy,
Do I believe that they used corporate funds to buy personal shares? Probably not, but if they really invested their own money why are they so incomprehensibly incompetent at raising shareholder value, aka communicating? It's embarrassing.
ERHE has a very REAL chance of being a $10-$50 stock in a very short amount of time and these incompetent boobs can't get the word out.
Troy,
I am sure they can... by wiping current shareholders the rest of the way out, unless they can continue throwing money away just to pay undeserved salaries.
Troy,
Middy, I agree with you. Ntephe's refusal to show even the slightest leadership ability is a continuous drag. He is incompetent in the CEO position. In this case he may be unintentionally providing a hint. By not comforting shareholders by telling them the plan if drilling fails to produce oil he may be telling us that this is the end. ERHC Energy will be sold regardless of the results.
Find oil? High price.
Don't find oil? Throw a dart.
The EEZ...KABOOM!!!! Lots of activity in the EEZ. Only 3 years to commence drilling according to PSC/various contracts...that means planning must pretty much start now...and with the Big Jane rumor in the background...something is happening there. No telling how much cash we garner. In the JDZ we got 40+ million bucks. EEZ blocks are way bigger than the JDZ...lots more money involved...and therefore, lots more money to be paid to ERHC. ERHC must be looking so pretty that Ntephe can kick back and write a few Nigerian political articles...in fact, if Ntephe is not part of management in NGAR...that might explain...maybe he really is leaving.
Yeah,
I've seen the Comedy Central roast of Donald Trump, it was hilarious.
Strategy,
What did you think of my remarks about Russia oil?
The Doc.
ERHC revealed that it has seen a surge in interest in farming into Kenya.
Our friend GertJan retired:
https://www.linkedin.com/in/gertjan-van-mechelen-0956ba36
Age thing, after 40 year work?
Has this been seen/discussed? From december 11, 2015
ERHC revealed that it has seen a surge in interest in farming into Kenya. ERHC is currently in discussions with several interested international companies.
Strategy,
What is ironic is that Russia could actually turn off their own drilling short term to flip the supply side back down to under the demand side.