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CobraJet, given that theory we can conclude
that they aren't drilling next week! LOL!
The search warrant, IMO.
Anadarko has the Belford Dolphin in 4 months and will have it until Feb 10th, 2009. What other deepwater properties does Anadarko have that would require that rig?
condor, this fact was posted (by Elecktick or Spec29) last week. Your implication that nothing will be drilled until 2008 is just more of your same style of posting... scare tactics.
Whether the rig is used in the JDZ as soon as they get it is unknown. Rather than use that as a negative why don't you exert half the energy you use to bash this stock and call Anadarko to see if you can find out?
http://www.fredolsen-energy.no/?aid=9050075
The way Sinopec throws money around they could get a rig, and some nice assets, by buying Anadarko. They have a deepwater rig for 4 years starting in January.
bobwill9, the irony of your post is amazing.
Umbra, if you liked that one, you'll LOVE this one...
It's in Microsoft Powerpoint format, so if you don't have powerpoint you'll need the free viewer from Microsoft.com
http://www.spe.org/web/energyed/slide_lib/api_posters/tech_transform_ind.ppt
Some may find this informing...
http://www.spe.org/spe/jsp/basic/0,2396,1104_3229384_0,00.html
LOL@Umbra! em
Umbra, you left out the part we all need...
... the WHEN part!
the targeting of first oil production by Q3 2007 from OML 122. In addition, Equator and its partners, the Korea National Oil Company, ONGC Videsh and Sinopec are aggressively negotiating to secure drilling rigs to commence exploration activities on
OPL 323, OPL 321 and Block 2 JDZ.”
http://ww7.investorrelations.co.uk/equator/uploads/press/reservesreport19.6.06.PDF
"Sao Tome to make US$ 396.1 million" ???
How can they even hope to make a prediction like this? How much oil is there? I don't know, but it seems the author does.
How much oil is in the STPEEZ? I don't know, but it seems the author does. There are 22 blocks that can contribute to Sao Tome's coffers, and only one wildcat well drilled in one block to date. Nobody know's how much Soa Tome will bring in in 2014.
Electick, why are you on *me* like this,
All the *stuff* has been thrown at the wall, some will stick, some will fall. If there's oil like we think there is, we all win.
Attacking it too harsh as a word, but you do seem to reach towards discrediting me, and I'll be d@mned if I know why.
Umbra, the following comes to mind:
"Those who know, don't talk. Those who talk, don't know."
This applies to me as well, because I can assure you that I don't know jack about what these guys are up to... but I can speculate on potential and scenarios for a month of fortnights with ease.
For example; A 1:8 to 1:6 exchange with Sinopec with SEO joining its BOD would be kind of nice here, but I think his ego would preclude that. I guess it depends on the price though. See? I told you I don't know jack! It's ALL speculation until the PR's and filings hit.
I've been blasted for that, speculating, but I've got thick skin. Speculation and pondering are the sole purpose for these boards. It's time for that second coat of polyurethane, gotta go.
Elecktick, you have said that B wanted to build a real oil company. You have also said SEO/Jeter hog-tied B so he "could not run the company".
Would it be too presumpuous to connect the dots and speculate that perhaps there is an offer on the table that SEO is considering and B differed in opinion about accepting at this time?
Doug,
How can that post possibly be interpreted as a negative shake-up? We got a "very, very exciting" and a "rights are intact and very valuable"
That's THREE "very's" in one short post! That has GOT to be good!
LOL!
To meet the requirements to list on a U.S. exchange you have to meet SEC requirements. This should include stadards in calculating proven reserves. I am slightly less clear as to how this would apply to Sinopec if they are listed here as an ADR. I hope this helps.
Condor1, if you have pessimism on one side, optimism on the other, and reality in between... I'd fall to the optimism side of reality given CVX's handling of OBO-1.
You, on the other hand, are the personification of pessimism when it comes to ERHE. Time will tell the story. If ERHE is the success I think it will be you won't be around to accept the "I told ya so award". Your pessimism will have deprived you of huge gains. To each his own. My best advice to you is if you really do feel as you state then don't ever look back at ERHE shares after you sell. Riding out a bad buy is 10 times easier than looking back and seeing a bad sell.
JMHO.
Umbra...
U.S. owned and traded corporations have to abide by U.S. laws and requirements for proven reserves. To list and trade here they must obey.
Extractor8, I agree. A buyin would be perfect right now. Get the share price up to the 3-5 range going into drilling and list on Amex.
But is anyone, even Sinopec, willing to put a few billion dollars into ERHE shares before proven? It would definately be either the best or worst investment ever made.
This thing is either Google or Enron, the bugger is figuring out which!
"but not beyond a buck and a half". How old are you?
Is this your first stock? That is the most incomprehensible statement I have ever heard. ERHE's share price depends 100% on the oil that's in the ground. Saying proven reserves won't take it past a buck and a half is, for the lack of a better word, stupid.
Condor1, thanks, I only disagree somewhat with your timeframe for stock appreciation. You believe oil profits are 2.5 years out... I hope so, I would think longer!
We're drilling in 6-8 months, don't think for a minute that ERHE's share price will depend only on flowing oil 3 years down the road. Proven reserves will make this stock a big oil buyout target LONG before oil flows.
If Sinopec finds 2B bbls in #2 that's worth $3-5 a share alone. As each blocks get spudded and proven look for anoth $5 per share for each. In 2-3 years I expect 10+ holes and a share price around $15 if we aren't holding Sinopec shares by then. Note that the first drop of oil hasn't flowed, it doesn't have to.
Dadd, can you help me here? Umbra needs to see the document discussing Profit oil/cost oil split. I know I read it here and if there's a trustworthy librarian on this board, you da man!
Umbra, as I remember the split is like this:
50% of all oil pumped is tax and goes to the JDA.
Of the remaining 80% is cost oil and 20% is profit oil.
As costs are recouped the split shifts to 80% profit oil and 20% cost oil.
Throw in the PSC partner split and ERHE will get, on average, 1.7% up to 6.8% of each barrel of oil found in its blocks.
If each block contains an AKPO equivenant and can produse 225K bpd we're looking at 12,000 to 48,000 bpd to ERHE.
At $70 a barrel that's $840K to $3.36M per day in revenue. I don't see costs going through the roof, so a good bit of that will go straight to the bottom line. This is only from the current JDZ blocks 2, 3 and 4.
condor1, "he made people ,customers,partners,shareholders believe in his vision,his product"
I agree completely, that's exactly what ERHE's CEO will do, if they appoint the type I am thinking. It's not the COB's job.
Have you ever said anything positive about this stock? Ever?
Condor1, don't be ridiculous!
Whether Offor steps into the limelight and takes the role of an ERHE version of "Bill Gates" is irrelevant. The company will be valued by its proven reserves, not its chairmans persona.
At the end of this I believe we are holding Sinopec shares anyway and SEO is not a factor. All that remains is to see how many Sinopec shares we'll get for ours... let's get those drillers drillen!
Sweet!
hal, that thought is a shared thought...
I'm betting we'll do well as investors if we start learning Chinese.
I sent Keeney Dadd's URL this morning (with full credit to Dadd, of course). That's when he respondid that ERHC's site had been updated.
Stay the Course, block operators are entitled to ERHC's share of the cost oil, but ERHC will book revenues from the profit oil from the day the first oil flows.
Balance, Agreed. I think this cat has scratched its way out of the bag. It was only a matter of time. Oily says 2 more parts, both involve ERHC... wanna bet one part is CVX and the other XOM?
I'm guessing they are last because they are still kicking and screaming that they have to work with a minnow. Bottom line, if what's down there is what we think is down there, they *will* eat crow and deal with ERHC. It's just good business sense.
Silver, those were the deals that resulted in the $45.9M ERHC booked (of which $41M is still left, kudos!).
Those are the deals that resulted in full carries to first oil in all three blocks.
Those were the deals that made ERHC Energy!
"They also told us that they will have to drill one or two more wells to confirm that the block is economical and viable for exploration"
Does anyone think it would be a sound business decision to pour another $120M into drilling two more holes if the commercial viability were in question? The freakin snakes got oil, and lots of it. The chess game continues.
30 Crappie, I saw that comment too and got goosebumps. We are oblivious to the magnitude of what Offor has planned.
Recent Activity
http://www.erhc.com/RecentActivity.htm
The Company's focus is to exploit its rights to working interests in exploration acreage in the Joint Development Zone (JDZ) and the Exclusive Economic Zone (EEZ). The Company has entered into agreements with upstream oil and gas companies to jointly negotiate production sharing contracts in these JDZ Blocks. The technical and operational expertise in conducting exploration operations will be provided by ERHC's co-ventures.
On November 17, 2005, ERHC agreed to sell its 33.3% participating interest in Block 4 of the JDZ to Addax Petroleum (Nigeria Offshore 2) Limited for $18 million, leaving a 17.7% participating interest in Block 4 to the Company. This transaction was completed in February 2006.
On February 16, 2006, the Company sold its 15% participating interest in Block 3 of the JDZ to Addax Petroleum Resources Nigeria Limited for $7.5 million, leaving a 10% participating interest in Block 3 to ERHC.
On March 2, 2006, the Company sold a 28.67% participating interest in Block 2 of the JDZ to Sinopec International Petroleum Exploration and Production Corporation Nigeria , and a 14.33% participating interest in Block 2 of the JDZ to Addax Energy Nigeria Limited for $13.6 and $6.8 million, respectively, leaving a 22% participating interest in Block 4 to ERHC.
All of the proceeds from these sales were received by the Company during the quarter ending March 31, 2006.
On March 14, 2006, a subsidiary of ERHC entered into a production sharing contract ( PSC) with Addax Petroleum (Nigeria Offshore 2) Limited (“Addax”), several oil and gas companies, and the Nigeria-Sao Tome and Principe Joint Development Authority (JDA), to conduct petroleum operations in Block 4 of the JDZ.
On the same day, a subsidiary of the Company entered into a production sharing contract with Addax Petroleum Resources Nigeria Limited (“Addax Sub”), several oil and gas companies, and the JDA, to conduct petroleum operations in Block 3 of the JDZ, and on March 15, 2006, a subsidiary of the Company entered into a production sharing contract with Sinopec International Petroleum Exploration and Production Corporation Nigeria (“Sinopec”), Addax Energy Nigeria Limited (“Addax Ltd.”), several oil and gas companies, and the JDA, to conduct petroleum operations in Block 2 of the JDZ. Addax, Addax Sub, Sinopec and Addax Ltd. are required to pay all of ERHC’s future costs in respect of all future petroleum operations in Blocks 2, 3 and 4 of the JDZ. They are entitled to the Company’s share of cost oil until they recover the Company’s costs.
Entering into production sharing contracts in Blocks 2, 3 and 4 of the JDZ represented an important step in ERHC's goal of commercializing the Company’s interests in the JDZ and increasing shareholder value. The Companies’ interests in the JDZ blocks represent the cornerstone for ERHC’s future growth strategy.
Has anyone noticed ERHC.com has been updated?
http://www.erhc.com/OptionRights.htm
Thanks Dan!
"Sale of Participation Interests
Block 2: ERHC has sold a 28.67% participating interest in Block 2 of the JDZ to Sinopec International Petroleum Exploration and Production Corporation Nigeria , and a 14.33% participating interest in Block 2 of the JDZ to Addax Energy Nigeria Limited for $13.6 and $6.8 million, respectively. This left a 22% participating interest in Block 4 to the Company. ERHC agreed to support Sinopec as operator, and Sinopec and Addax agreed to pay all of the Company's future costs in respect of petroleum operations in Block 2. Sinopec and Addax are entitled to the Company's share of cost oil until they recover the Company's costs.
Block 3: ERHC Energy has sold its 15% participating interest in Block 3 of the JDZ to a subsidiary of Addax Petroleum for $7,500,000. This left a 10% participating interest in Block 3 to the Company. ERHC agreed to support Addax as operator, and Addax agreed to pay all of the Company's future costs in respect of all petroleum operations in Block 3. Addax is entitled to the Company's share of cost oil until Addax recovers the Company's costs.
Block 4: ERHC Energy has sold its 33.3% participating interest in Block 4 of the JDZ to an Addax Petroleum subsidiary for $18 million. This left a 17.7% participating interest in Block 4 to the Company. ERHC agreed to support Addax as operator, and Addax agreed to pay all of the Company's future costs in respect of all petroleum operations in Block 4. Addax is entitled to the Company's share of cost oil until Addax recovers the Company's costs."
Since the DOJ exercised its search warrant...
...trading volume of ERHE has been lower than I've seen since hearing about this company... and the share price has actually been level to slightly higher. Does that happen to companies that aren't legit?
Since the DOJ exercised its search warrant...
...the company has signed a nationally recognised law firm to defend its rights. Does that happen with companies that aren't legit?
Since the DOJ exercised its search warrant...
...the company has signed a PR firm to take its message to the public. Does that happen with companies that aren't legit?
This company is acting as mature as companies 20 years its senior. Its destiny is obvious. Let the mongrels of the world scream their insanity to all they will. That won't change the facts.
Art, I agree, and I'll bet $10 I know which one. The guy creates aliases faster than the U.S. prints cash!
IMO, the website link was left off the PR because they know, as admitted by KeenyPR, that the website is trash when compared to reality. I believe there is a MAJOR upgrade of the site coming and I will bet it comes before Thanksgiving.
JMHO.
TFA, if our CFO was responsible he would've had the filing completed long ago.
I mean really, what has happened in the quarter that would require much modification from their last filing?
I know, they'll screw it up somehow. I suppose we get to ride the E-ticket ride again! (There I go showing my age again, lol)
TWO ONE HUNDREDTHS OF A PERCENT
of outstanding shares have traded today. I suppose I can understand no buyers given the outstanding investigative issues. But what is more telling is that there are no sellers.
This sucker is in tight hands and that's a very good sign.
It doesn't sound like they want to build an oil company to me...
"Ultimately, ERHC’s long-term plan is to keep administrative costs to a minimum by entering into production sharing agreements and to utilize cash flow from operations to acquire a geographically diversified portfolio of producing and development projects and low to medium risk exploration properties."
They don't want to be an oil company, they want to be a real estate broker of oil properties. IMHO.