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I listened also-anyone else confused about when drilling will start? Heard 2009 and 2nd 1/2 of 2010 from Bovell-seems he contradicted himself but maybe I misunderstood.
No way Strass-he referred to 2 ROO's-not 2 blocks. eom
so does "sisters". Just guessing-arent't xom and cvx referred to as the sisters? eom
cause Oily said so. Hi Red! eom
Much more history with ERHC than with EEL. eom
I believe anyone with 5% or more ownership is considered an insider. Others on the board know the answer for sure.
Chinese at it again: From Upstream....
http://www.upstreamonline.com/live/article164184.ece
Getting ugly out there!! eom
Interesting and relevant post from SPP on EEL Board:
I strongly urge fellow PIs to read this FT article published last week on the recent deepwater Brazilian oil finds. It is both informative and enlightening to someone holding stock with interests in the EEZ.
http://www.ft.com/cms/s/0/fcfbfd0a-7f64-11dd-a3da-000077b07658.html
It first quantifies the actual scale of the discoveries in terms most people can understand. Indeed they appear to be “as significant as the North Sea” which in the 1970s was one of the new frontiers that helped pull the world out of its last big oil shock….Maybe (according to some Brazilian officials) even ten times larger!! Should this be true, proponents of “peak oil” theory must surely twitch their assumptions somewhat.
Secondly, it clarifies the notions of “pre-salt” oil finds and associated drilling thereof. Mostly located way offshore, these fields (off Brazil) have oil locked below the many rocky zones (where conventional oil drilling usually aims to penetrate), below even the hot, volatile, high pressure salt layers beneath these rocks to depths between 5,000m to 7,000m+. Here is oil, trapped in place “since before Africa and South America parted company more than 100m years ago”.
Drilling at these depths and conditions, although tempered by a history of 100% success rate, is still full of operational difficulties. Only a tiny handful of companies have mastery over the relatively novel technique used (called “long duration testing”), primarily Petrobras and – interestingly enough - Portugal’s state oil company, Galp and the Gulbenkian Foundation owned Portuguese oil firm, Partex…. In other words, a complete Lusaphone axis of expertise.
Accordingly, could we perhaps be entering a new drilling era, witnessing the emergence of a new hydrocarbon exploratory paradigm targeting depths away from the rocks and deep under the salts….no longer pursuing just elephants or giants, but the gargantuan deposits trapped just below these outer crusts of the earth’s surface.
Thirdly, the article describes in clear relief, through the Brazilian version, the intense conflict, currently playing out in full swing globally, between the politics of resource nationalism with the attendant growth of many new NOCs, and the need to attract and maintain international finance capital, technological expertise and….. the investor confidence which sustains them. It is a conflict with many differing local strands, but one in which the words of a former Brazilian finance minister are apt words of wisdom to the many budding would-be modernizers; “Either we make this investment possible, or we will be saying, ‘the oil is ours – ours down there under the ground’.”
Now why is all this of any interest to shareholders in companies like EEL or ERHC who hold major commercial rights in that vast stretch of watery territory of the Sao Tome/Principe’s EEZ ?
The short answer is because the various different strands of interests the article brings up, converge on thinking of how development of the EEZ is likely to occur….A development whose beginnings are now imminent……
It has, first, been suggested that at least some of the geology underneath outer Gulf of Guinea waters, especially in the more southerly pre-salt layers, in many ways mirrors the basins off the Brazilian coasts, as the two areas were once joined together over a 100m years ago.
http://pubs.usgs.gov/bul/2207/B/pdf/b2207b_508.pdf
So there is legitimate cause for additional exploration interest in these STP waters, especially at below salt level depths. Could these contain some gargantuan size “pre-salt” oil fields like their cousins across the Atlantic off Brazil, instead of the proximate 4-11 billion barrels of gassy oil anticipated from the rocky zones cursorily studied so far? And indeed, should this be the case, the huge delay STP’s fractured politics have so far imposed on exploiting the islands hydrocarbon wealth will have turned out to be a blessing in disguise. For newer E&P techniques and knowledge can now kick in to permit the country…and the various stakeholders in its oil wealth, to frog leap into a new drilling era….peak oil situation or not.
But though of pivotal importance, this potential is hardly the only interest the FT article stokes up. It is now an established fact (testified in many posts here and on ERHC threads) that every STP administration and the Presidency are long united in desiring a consortium of Lusaphone oil companies to lead in prospecting and mining their oil wealth. And it is not unknown that both Petrobras and Galp have paid (repeated in the case of Petrobras) visits to the island in this regard, concurrent with tightening state-to-state accords between STP, Brazil, Angola and Portugal in oil sector co-operation.
So it is pretty clear that these companies will be dominant players in the STP EEZ. And with their almost unique, collective, pre-salt E&P expertise, they will definitely seek to find and exploit such potential, if it exists. A task made easier, in no small way by the fact that Petrobras - in large part because of the huge new pre-salt finds it keeps announcing - has already booked some 80% of the worlds deepwater drilling ships for use in these fields over the years to come. In fact, drilling STP waters to such deep depths, could be so facilitated by Petrobras, despite world-wide rig shortages, and come much sooner than what is conventionally assumed.
Lastly, the main question the FT article deals with, how to balance the needs for efficient exploration/development with the desire to maximize public benefit of resources is now coming to center stage in STP. As was posted last week, the government has just sent three draft bills necessary for holding of EEZ block auctions to Parliament, namely the Framework Law for Petroleum Operations, the Petroleum Tax Law and the Production Sharing Contract Model:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31998416
Just what kind of a concessionary regime will be framed into the basic Petroleum Law and the PSC remains to be seen. Judging from STP’s statements at the July JDZ meeting it seems to be in a rather atavistic and fighting mood in trying to reclaim as much as possible from prior undertakings.
What seems certain is that at long last, the delineation of the EEZ blocks will be entered upon so as to enable the auction to take place within 2009. Whether it will attract sufficient interest is conditional on STP lawmakers heeding the words of wiser Brazilian brethren. To enable i.e. major investments with a light concessionary regime with minimal taxation, royalties and bureaucracy (such as PSC cases with Albania or Georgia who seek to mine their oil resources quickly and effieciently) or, conversely to keep hoisting the nationalistic banner and let their possibly super-abundant (pre-salt) oil stay where it is..
“down there under the ground”.
Very interesting post re status of Rigs from SPP on EEL Board:
FYI
-----------------------------------------------------------------
spp119 - 27 Aug'08 - 09:29 - 23387 of 23412
ROO = Deepwater Pathfinder?
Yesterday afternoon, a very cryptic message appeared on the ERHC IHub board;
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31730600
If true, either the Pathfinder (or the Cajun Express) may be the ROO that Addax/Sinopec/Anadarko have long been after for a joint three JDZ Blocks exploratory drilling campaign starting in late 2008 (see Posts # 4793, 20011 & 23126). Thereafter, from Q3/2009, the already booked and confirmed Abe Abraham kicks in with more wells on these very same blocks.
What is lost on ERHC shareholder/posters is the knowledge EELers are privy to. (see item #6 in “Anticipated News” header above). That the Pathfinder is the ship booked for (at least) a four well drill on OPL323 and OPL321 starting next August….. i.e immediately after expiry of this possible ROO contract on the JDZ, just three sailing days away northwest in the GoG!
http://deepwater.com/fw/main/Fleet_Update_Report-58.html
So, given the close proximity of drilling sites, (and therefore minimal time loss in sailing between them), the Pathfinder may indeed be the long anticipated ROO. (Vessel is currently in South Africa undergoing maintenance/repair work).
And what could all this spell for EEL?
Nothing short of continuous exploratory drilling throughout the whole of 2009. First, Block 2 spudding (Principe prospect) by the Pathfinder, followed by 4 wells (maybe five) on the OPLs….also by the Pathfinder, then another Block 2 drill (on the Tome prospect) performed this time by the Abe Abraham.
Call it serendipity…
spp119
If rig news coming would think Axc would also be climbing. eom
Only the JDA can take away or award rights I thought. This may be just STP's position for now, not the official position og the JDA which I had thought was all that mattered.
Oil almost at $140!!! eom
I hope so!! eom
I hear you. Noone knows anything. Last time he talked about walking the plank, I think offor stepped down. Who knows. I think walldog is right-this is about waiting for drilling and oil. I still do think though we get bought into at some point.
when you think about it, including directors, there are only around 8-9 prople it could be. I suppose he could also be referring to the secretary on the white board. lol
NICK. eom
Just like the old days.Eom
Another interesting post from ssp at EEL board:
Re your on-shore proposal for the subsidiary. We ‘re close in our thinking, very close….(see earlier post mailed about ten days ago). Afren did same recently….and it cost them $1.5m for some acreage with proven gas reserves left abandoned bt Shell! And there are lots more like that.
But ERHC should not come to AIM alone. It should tie in with a partner…preferably a big name who wants to enter Nigeria (and in that respect Gazprom is ideal).
Alternatively, if they are looking elsewhere in the world (FSU), then I have a suggestion. Tell the folks at ERHC to look at Frontera in Georgia (FRR on AIM). They are seeking a farm-in partner for a field with a P3 of circa 50mbbls. They are a stone’s throw from ERHC in Houston. I have never met a better-connected, impressively professional, small oil company like them. And they are the darling of the investment community in London. With truly amazing potential upside….even over the next few months.
Finally, I can tell you that a lot of PIs are looking forward to the London event (for we at ADVFN/EEL have been inundated with requests for more info). Furthermore I know that a certain widely read site is going to have something to say. Incidentally, I may show up also.
But please pass the word to Peter not to hype the assets so much with rather debatable – and dated –resource estimates. Most even partly-seasoned investors know what is contained in the JDZ……They’ve all read the recent Addax (NSAI) estimates, as well as those of EEL’s Block2. No use for inflated unrisked numbers.
From a great EEL poster:
Guys,
Lots of froth yesterday at the impressive ERHC presentation in SF. Same probably to be repeated next week in London . But it was lapped up by PIs here last night, much to the benefit of EEL today (c24%). For it certainly did put the JDZ and the EEZ on peopleʼs mental map.
Please feel free to send/post this message as you see fit. (Just delete my real name)
Spp119
Hey, he talked about popcorn!! eom
Maybe we are involved in farming in to the blocks? Just an uneducated guess. eom
Here is the latest news-today, from EEL:
Corporate Update
June 03, 2008
London, 3 June 2008 - Equator, the exploration and development oil and gas company with projects in the highly prospective offshore basins of The Gulf of Guinea, offshore West Africa, hereby makes the following announcement to provide an update on the Company's progress on a number of initiatives.
Farm-out Strategy and Progress
The Company's stated ongoing strategy is to optimise the value of and secure funding for its interests offshore West Africa in the best interests of all stakeholders. This strategy is progressing satisfactorily as summarized below.
Progress on OPL 323
The farm-out of 20 per cent of the Company's interest in OPL 323 held by Equator Exploration Nigeria 323 Limited ('323 Ltd') to BG Exploration and Production (Nigeria) Limited ('BG') is progressing and is now in the final stages. 323 Ltd is now at the point of seeking the signatures of its partners on the transfer deed and the documents to amend the joint venture agreements prior to submission to the Nigerian authorities for final approval.
Progress on OPL 321
The Company has received offers from a number of entities to farm-in to its interest held in OPL 321 by Equator Exploration Nigeria 321 Limited. The Company is currently evaluating these offers and is confident that agreement will shortly be reached with at least one of these entities. Further information will be released in due course.
Progress on Other Farm-ins
The Company continues to seek ways to monetize all or part of its interests held by Equator Exploration JDZ Block 2 Limited in JDZ Block 2 and also in the Company's two option blocks in the Exclusive Economic Zone of São Tomé e Príncipe ('EEZ').
Net Profits Interests
Further to the announcements dated 11 January 2007 and 17 August 2007, the Company is pleased to announce that it has reached a settlement with its bidding partners regarding the remaining net profits interests in both OPL 321 and OPL 323. Equator confirms that it now has the full 30% economic interest in both blocks out of which the farm-out of 20% of OPL 323 is in its final stages and the farm-out of OPL 321 has yet to be agreed. In settlement, a relatively small cash payment will be made from the proceeds of the farm-out of OPL 323 to the partners who bid with us for the blocks in 2005. The bidding partners have also been granted a total of 5.6 million warrants, priced at 8 pence, over common shares in the Company.
Arbitration Process
Further to the announcement made on 11 February 2008, the arbitration process held in London between Equator Exploration (OML 122) Limited ('OML 122 Ltd') and Peak Petroleum Industries Nigeria Limited ('Peak'), which was undertaken in accordance with the terms of the Bilabri Settlement Agreement ('BSA'), details of which were announced on 28 September 2007, is now concluded. A final award, which is enforceable in Nigeria under Nigerian Law, was issued on 27 May 2008 by the Arbitrator in favour of OML 122 Ltd in the total sum of US$123 million plus interest ('Final Award').
Prior to the grant of the Final Award, Peak had made several representations to the Company that it will be able to and intends to satisfy in full, the terms of the BSA at the latest by the middle of June 2008. With this in mind and in order not to frustrate Peak's current financing initiative, the Directors of Equator have taken the view that it would be prudent and in the interests of the Company's stakeholders to achieve settlement under the BSA before enforcing the Final Award. Although OML 122 Ltd is presently taking steps to register the Final Award in the Nigerian courts, it will however not seek to enforce its claim in the Nigerian courts until after the middle of June 2008, at which time the Company will reassess its position if settlement under the BSA is not realised. The Company will make such further announcement as would be appropriate at the time.
Contingent Liabilities
We remain in contact with Dolphin Drilling Limited, BW Offshore Limited ('BW') and other suppliers from the suspension of the Bilabri development as the farm-outs noted above and the potential settlements under the Final Award or the BSA move closer to completion. Determination of the contingent liability to BW of up to US$ 58 million, noted in the Company's Interim Accounts for 2007, of which US$20 million has already been paid, which may result from the termination of the charter agreement for the Floating Production, Storage and Offtake Unit by BW, is the subject of legal proceedings in the British Virgin Islands. However, in order to ensure that the interests of all of the Company's stakeholders are safeguarded, the Company is currently in discussions with BW.
Working Capital and Funding
Leaving aside any potential recovery under the Final Award or the BSA, the Directors believe that completion of the farm-outs noted above will provide the Company with significant additional working capital of approximately US$80 million. In addition it will eliminate the future cash requirements of approximately US$27 million under the committed exploration work programmes for the residual interests that will be held by the Company in both OPL 321 and OPL 323.
The Directors believe that following the proposed farm-outs and the resolution of the net profits interests, the Company will have residual interests in each of OPL 321 and OPL 323 of at least 10 per cent. These, together with the interest in JDZ Block 2 and the two option on blocks in the EEZ, provide an exploration portfolio with significant upside potential.
The Directors currently expect exploration drilling to commence on OPL 321 and OPL 323 late in 2009 and on JDZ Block 2 in 2010. The Directors also believe that delineation of the blocks in the EEZ is unlikely to be completed prior to first quarter 2009.
Enquiries:
Equator
Philip Rand, CEO/CFO
Philip Dimmock, COO
+44 (0)207 235 2555
Beaumont Cornish Limited (Nominated Adviser to Equator)
Roland Cornish
+44 (0)207 628 3396
Fox-Davies Capital Limited (Nominated Broker to Equator)
Richard Hail
+44 (0)207 936 5234
Buchanan Communications
Bobby Morse/Ben Willey
+44 (0)207 466 5000
Information on Equator
Equator Exploration Limited
guzunthite. eom
Red-Afren. eom
Easy come, easy go. Amazing really. eom
Thank you. eom
Manti-but what gap? I watched for a gap this am and pretty much it went up I thought fairly orderly.
Krombacher and Miamidrift-Please use PM's if you are going to go back and forth with accusations of eachother. This board is not the proper venue. Thank you!
Manti,
Per Peter N in one of the conference calls, Feltang is a group of Nigerian businessmen. That is the extent to which the co has commented on them,
no idea. eom
You can count on a deal w/Petrobas involving the EEZ imo. Don't see them in the JDZ blocks already awarded though. Addax can hanle the deep water there in my opinion.
I don't know the specific requirements for listing on the AIM, but I would think there are limitations on ownership and control of a new co being listed on an exchange.
Interesting thought that Chrome would be the co to have an IPO on the AIM. ERHC (shareholders) would own a chunk of Chrome and as Chrome already owns 43% of ERHC (read SEO), there would be ad hoc control of the co from day one. Not sure if this is necessarily good for us commoners of ERHC but can see the possibilities. maybe Chrome/SEO would first need to significantly divest itself of ERHC. Just rambling out loud.
Harry Potter also lives in Surrey. Wonder if this is merely a coincidence? LOL. eom
As I've said in the past, IMHO, we will never have a CEO. We will be merged into or be taken out by another company.
Spec, that really hurts. LOL eom
I second that Manti. larry is the real deal. eom
Re: Peter N-I wouldn't say that he came across negatively as in untrustworthy or anything like that. Having heard him on a conference call, with the right audio conditions he is very understandable and in fact, I think he goes out of his way to talk slower to make sure people can understand him. The other people were very audible-my guess is that Peter just wasn't speaking directly into the microphone.