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Pete, thanks, that means alot coming from you. Another comforting fact is the vast majority sees this as a long term ( not selling) oil play that will eventually pay off. News always comes when you least expect it and its time for the news to be VERY GOOD. Right Peter? Keep smiling.
Exactly, Company making unsolved non disclosed RIDDLES! Way too many conflicts and missing details from 5 wells and the majority keeps reporting that they are still analyzing information, they are all tight holes and everyone here knows it. Too many entities involved not to have tight holes, its the structure of the JDZ politics and numerous shared interest combined with deep water complexities, extreme pressures etc.. that cause all the delays.
Is there anyway to get a new proforma from ERHC management. What was the total expenditure for legal representation over the last 5 years. How will that differ in coming years?
Given the conflicting, political, half truths, incomplete, shallow drill reports : How can you be sure we dont already have blow out results?
: That's why the share price is down...it's not the sure thing as it was when we thought we would get blow out drill results.
Princesle, I agree it doesnt make sense. Stock prices rarely do act as we would hope, especially this one. The only true reason is LACK OF CLEAR COMMUNICATION AND COMPANY DIRECTION from ERHC which LEADS TO UNCERTAINTY.
CONFLICTING INCOMPLETE REPORTS from management.
The manipulation by OTC market makers dont help the trend.
GREED AND FEAR = ( UP AND DOWN SHARE PRICE )
The AKPO field was discovered in 2000 by
Total Upstream Nigeria Ltd (TUPNI).
Located 150 kilometres off the Niger Delta at
a water depth of 1,400 metres, AKPO is the
first deep-offshore development involving
light oil with a high gas content.
In the field's Miocene reservoir the fluid is
in ‘critical conditions’, i.e. the gas and
liquid hydrocarbons are in a single
phase, at high pressure and temperature.
The produced gas is partly re-injected
and partly exported onshore to the
BONNY liquefaction plant (NLNG) via the
AMENAM field facilities. This hybrid
injection/export gas scheme optimises
hydrocarbon recovery: gas is injected
only in reservoirs which can benefit from
this type of pressure support.
On the same OML 130 block as AKPO,
three oil discoveries (EGINA, EGINASOUTH
and PREOWEI) now form the
basis for an oil development with a new
FPSO located in the EGINA zone.
Both AKPO and EGINA, with their ability to
handle a variety of fluids, will be ideal
hubs for developing future hydrocarbon
discoveries in the area.
http://www.ng.total.com/media/pdf/Akpo_leaflet.pdf
"Total plc, the French oil giant, will soon invest $7 billion to expand its deep off-shore exploration for oil and gas in Nigeria, according to the French ambassador to Nigeria, Jean-Michel Dumond. ":
Awesome find King, thanks. This has to be very good news for ERHC either directly or indirectly.
"Deep water" means very close if not Block one or more or all of ERHC, hopefully.
"EXPAND" sounds very good to me .... More specific news will follow, only questions is "when".
There are 1000's of wells just in the Gulf of Mexico, so you had a rare severe problem with one. Life goes on, we need the oil.
BTW The crew were actually celebrating a record accident free award on deck when she blew up.
Obama just set up 3 new agencies to make their life miserable and our oil more expensive. How about just enforcing current laws and rules for a change.
I would guess it doesnt affect JDZ or EEZ at all. Offshore drilling will continue to grow regardless.
See post 214546 , look at page 12 of presentation.
I dont see any dilution in the near future and isnt a concern at all, at this time. Total or Sinopec will buy us out as soon as they know whats there and have all the properties they can get for the best terms they can negotiate. These manuevers take time. Been there - done this. Buy all you can and wait. The hydrocarbons are there.
Exactly, the point is they are not telling us anything concise YET. Its all designed to confuse and delay.
http://www.equatorexploration.com/operations/NSAI_Summary_Report_on_Prospective_Resources_Block_2_JDZ.pdf
http://www.equatorexploration.com/operations/sao_tome.aspx
Prospectivity
JDZ Block 2 lies at the end of the toe thrust of the deep water Niger basin. It is adjacent to Nigerian Block OML 130, which hosts the Akpo Field, with reserves of 600 million barrels of oil and 1 TCF of gas (Total 2007) and series of significant discoveries. The Obo-1 well discovery in the adjoining Block 1 proved the existence of a hydrocarbon source and the presence of excellent reservoir sands in the region of Block 2.
Based on the 3D seismic survey, acquired in 2003 by PGS and partially funded by Equator, NSAI made a Best Estimate of Gross Unrisked Prospective Resources of 1.3 billion barrels of oil and 1.9 trillion standard cubic feet of gas in total in the 10 identified prospects.
The subsequent evaluation by the operator differs in detail with regard to the definition, size and ranking of the prospects from the NSAI evaluation. For example, the operator identified 18 structures. Their estimate of total unrisked prospective oil-in-place is 3.9 billion barrels and of unrisked prospective gas-in-place is 8 trillion cu ft, both at the P50 level. These figures compare with NSAI’s Best Estimates of unrisked prospective in-place volumes of 4.7 billion barrels for oil and 3 trillion cu ft for gas.
While the discovery in the Bomu 1 well of gas rather than oil was disappointing, the reservoir sands and traps were, by and large, encountered as expected. Further technical and commercial evaluation of the discovery and the other prospects on Block 2 is underway. The JDA has granted a six month extension to 14 September 2010 to allow Sinopec to complete these studies and to allow the participants to make a properly informed judgment on whether to enter the next Exploration Phase with its commitment of one well. Four other wells were drilled in the JDZ, three in Block 4 and one in Block 3, simultaneously with Bomu 1. We believe that the JDA may also grant extensions for these blocks allowing the common operator, Sinopec, to integrate the studies on a regional basis to the benefit of the JDA and participants.
http://www.erhc.com/en/art/142/
Drilling results> "Interesting drilling results with hydrocarbons encountered" this is very vague news not bad news.
http://www.slideshare.net/dpkpr/erhc-2010-agm-management-presentation
"China's Energy Wallet Never Closes"
Anyone else see a few reasons here for NOT disclosing initial exploration results ? Its obvious why lips are sealed and information is almost nil. No one says they are going to spend 23 billion on refineries and 50 billion on reserves in Nigeria and tells all. The cat is about to be released out of the bag IMO. Its only a matter of time and you dont want to be out of ERHC, the number 1 asset holder with a chip of full carry on his shoulders.
" In September, China readied lines of credit of up to $60 to $70 billion for resource and infrastructure deals in Nigeria, Ghana and Kenya" wall street journal
http://www.ft.com/cms/s/0/88885b14-6214-11df-998c-00144feab49a.html
Good thing our operator is exteeeeemly bullish > 50 billion bullish >
http://www.ft.com/cms/s/0/88885b14-6214-11df-998c-00144feab49a.html
"Chinese groups won a handful of concessions in highly politicised bidding rounds between 2005 and 2007, and secured a smattering of Nigerian production with Sinpoec's $7.2bn purchase of Addax.
But the full scale of Beijing's ambition was revealed last year in secret correspondence between representatives of CNOOC and a top presidential adviser discussing the state-owned Chinese group's desire to buy up to 6bn barrels of reserves.
Officials say the price on the table ranges from $30bn to $50bn for a deal that would more than double Chinese holdings of African crude."
Robber, you should take a break, there are 14 billion barrels at least in the JDZ alone. We are in the process of finding it. Come back in 2 years and eat crow. These things take time.
Years ago we had a london listing I thought.
China builds friendships downstream in its Nigerian oil feeding frenzy - "Officials say the price on the table ranges from $30bn to $50bn for a deal that would more than double Chinese holdings of African crude"
May 17, 2010 3:25pmby Tom Burgis | Share
With its $23bn offer to build three oil refineries and a petrochemical plant in Nigeria, China has added fresh impetus to its tireless courtship of Africa’s most prodigious energy producer.
At first glance, one might conclude that Beijing, shopping for crude to fire the economic engine at home, has planted its flag at the wrong end of the oil supply chain.
That would be a mistake.
The more China enmeshes itself into Nigeria’s petro-economy, the stronger its claim to be allowed to gorge itself at the source. By signing up for a project that no investor driven purely by commercial calculations would consider viable, Beijing will make itself plenty of friends.
But previous Chinese offers to boost Nigerian refining have come to nought. The universal reaction in business circles to what is still only a memorandum of understanding signed by a Chinese state-owned construction group has been: “I’ll believe them when I see them.”
Beijing has struggled to replicate here the grand infrastructure-for-resources deals of the sort it struck in Angola, instead toppling repeatedly into the elephant traps of Nigeria’s perilous political terrain.
Chinese groups won a handful of concessions in highly politicised bidding rounds between 2005 and 2007, and secured a smattering of Nigerian production with Sinpoec’s $7.2bn purchase of Addax.
But the full scale of Beijing’s ambition was revealed last year in secret correspondence between representatives of Cnooc and a top presidential advisor discussing the state-owned Chinese group’s desire to buy up to 6bn barrels of reserves.
Officials say the price on the table ranges from $30bn to $50bn for a deal that would more than double Chinese holdings of African crude.
Those talks have slowed amid recent political upheavals. Yet the separate refineries proposal could strengthen Beijing’s hand.
The plan aligns China squarely with efforts to reverse the topsy-turvy situation whereby the third-biggest crude supplier to the US imports almost all its fuel. The envisaged 900,000 b/d capacity of the new refineries is roughly double domestic demand, with the surplus earmarked for export within the region.
Eliminating imports would allow the government to stop spending some $4bn a year - equivalent to its entire capital spending budget - on a subsidy to keep prices at the pump artificially low.
Some of the country’s - indeed, the world’s - richest men have made fortunes importing fuel and lapping up the subsidy. Such well-connected vested interests are often blamed for the failure to get Nigeria’s four existing refineries working properly.
Until the sector is deregulated, building a refinery does not make commercial sense. But then there is little incentive to push ahead with deregulation until there is plentiful local supply of refined products. The beauty of the Chinese offer is that it dangles a solution to this chicken-and-egg conundrum by placing strategic imperatives over commercial ones.
Yet probably the biggest obstacle for China is the western oil groups for whom Nigerian assets count among their most lucrative anywhere.
Royal Dutch Shell is still here despite severe strains in a 50-year relationship. Shell executives insist that the latest rumours predicting its imminent departure are nonsense. Exxon Mobil has paid $600m to renew some leases, with Shell and Chevron expected to follow suit.
The Cnooc offer mentioned 23 blocks currently operated by the western groups. Officials stress any agreement would involve selling part of the state’s majority holdings in joint ventures, not ousting the westerners.
Appearing to sell the family silver would be politically difficult. But by mucking in to help build the downstream sector, China will be hoping to advance its thrust into the upstream arena.
We are in the first inning Mr Ponzi. What game are you at?
Maybe they drillied into Diamonds and Gold. lol
" YET" being the key word there. This initial exploration was never intended to be "BIG news Mammouth find adventure". That would have been nice, but we have been told phase 1 was for exploration and information gathering. Sinopec will play their hand when unknowns are known and this takes time with multiple partners and countries involved. It's more complex than drilling in simpler places, many entities to negotialte with.
We all know the Oil is there. Time will increase shareholder value. Then the buy out comes. AJMO.
ot Operations begin at Sinopec petrochem plant in Tianjin
May 12, 2010
Sinopec, China's largest refiner, officially put into operation a 34-billion-yuan ($4.98 billion) petrochemical complex in Tianjin on Tuesday, a move designed to tap growing demand for fuel oil and chemicals.
The facility is able to refine 10 million tons of crude per year and produce one million tons of ethylene annually.
The ethylene manufacturing project is a 50-50 joint venture between Sinopec and Saudi Basic Industries Corp (SABIC), a major petrochemical producer in the world's largest oil-producing nation, Saudi Arabia.
It is also the largest cooperation project between the two companies.
After the start-up of the project, Sinopec will expand its oil refining facility in Tianjin to 15.5 million tons per year, and increase ethylene production to 1.2 million tons annually, according to the company.
The project will help increase Tianjin's annual gross domestic product by more than 4 percent. And it will also generate an additional 100 billion yuan in investments downstream in related industries, according to Sinopec.
Products manufactured by the project will mainly be sold on the domestic market, but exports are also likely in the future, company executives said earlier.
Construction of the Tianjin project is in line with Sinopec's strategy of constructing large integrated petrochemical production sites, said Sinopec Chairman Su Shulin.
The project underscores the important ties between China and Saudi Arabia.
The two countries will further boost cooperation in petrochemical manufacturing and large project construction, said SABIC Chairman, Prince Saud Bin Thenayan Al Saud.
Analysts said cooperation with the Saudi Arabian company is beneficial for Sinopec.
"With SABIC taking part, Sinopec can get a sustainable crude supply for the project," said Lin Boqiang, a professor at Xiamen University.
Sinopec last year started operations on an integrated oil refining and petrochemical complex in Quanzhou, Fujian province.
The project is jointly owned and operated by Sinopec, US oil major ExxonMobil and Saudi Aramco, the national oil enterprise of Saudi Arabia.
The petro-complex will mainly process crude from Saudi Arabia.
China has now become one of the top three markets for the Middle Eastern country's oil exports, and the country is one of the fastest-growing markets around the world, said analysts.
Around half of Chinese oil demand is met by imports. At present, the Middle East, Africa and the Asia-Pacific region are the three main oil import regions.
China's net oil imports are expected to total 210 million tons this year.
The volume would be about 11 million tons, or 5.5 percent, higher than last year, said Huang Li, an executive with the National Energy Administration.
Total oil consumption this year will remain above 400 million tons, and the refinery industry will recover as a result of the increase in auto demand and a recovery of the logistics and transportation industries, she said.
Source: China Daily
Krom, guess we will just have to wait longer to hear the "potential".
"This information is preliminary and work is ongoing to integrate a potential area-wide development. "
"A comprehensive analysis that incorporates the drilling results into relevant geologic and fluid models is being carried out. The information from these wells is helping the exploration team understand the geology and hydrocarbon potential of the various prospects being drilled and will provide valuable insight into the prospectivity of the entire area. No final determination has been made by Sinopec regarding commerciality."
Everytime we have a " meeting " or Pr it happens.... self destructive management techniques. Did we really even move up after vague "read between the lines" anouncement of the return of some file sboxes..lol Give me a break.
It would be so refreshing just to have factual complete information and answers shared with us for once. Are they hoping for 1 cent so they can change their management style. ??
In truth, the decline is people who feel a buy out isnt tomorrow and sell. The Market makers take the suckers money. The market makers make money both ways.
They have every resource at the ready, they exist for this reason, deep or shallow it doesnt matter. Experts can be hired.
The man (company) with the money makes all the decisions, gets what they want, when they want. Remember this simple truth.
Nomad? Elaborate please. SEO is a fellow shareholder and you forget he is in this for profit just like us. Just because he owns a ton of shares doesnt give him the power to have our shares treated any differently than his. If anything he is under a microscope that you and I are not and will follow the rules to a T.
Mid, they have all the help they need, anywhere in the world. Your all wet here, they know exactly what they are doing and what game to play.
"are in WAY over their heads," Do you read the news about all the oil they are finding?
http://www.google.com/search?q=sinopec+oil+discoveries&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7RNWE_en
Nah, were shielded by the "Nigerian political Super Dome" and already survived the worst storm. Your in good hands with Sir Emeka Offor and friends. Need more cash, just call SEO.
A lot of intelligent experienced investors know that this stock can spike over night. Oil & Gas royalty buy-outs happen when you least expect them. Go ahead and bail, join the weak, Ive seen sellers cry and carry life-long regret leaving in the 1st inning of a potentially lucrative game. (We might have 1 out, in the top of the 1st inning.) But we arent sure even about that, as no official is revealing the score.
These shares are and will remain extremely tighly held. GLTAL
5 exploratory wells is about 2 % of the game, Ill wait for the 6th ining at least. These vast assets ERHC holds will have at least 200 wells someday IMO. Its only the beginning. The oil is there and everyone knows it.
Just curious, where did Tryoty go?
Middy, someone needs to combine communication issues "like this " into a professsional courtesy letter and mail it to Sir Emeka Offor directly! I cant imagine he could be 100% satisfied with the management. I am not sure he is aware of the inconsistent incomplete stories we have all been fed. Very confusing patchwork of information.
How can anyone invest with so much uncertainty and managements apparent lack of oversight and competence.
In the current scheme of things Corporate travel expenses should be halted at once for example. Enuf said for now, but a letter to the fellow shareholder is a good idea.
Perhaps more detailed positive new reports and analysis of their findings are being withheld to coincide with the AIM listing, block Auctions and Phase 2 drilling?
According to reports I have heard the anticipated BOP installed was or should have been sufficient. They obviously got caught with an unusual situation and a total suprise at the pressure. They now know they should have used a larger or heavier BOPreventer.
Emdyal, I completely agree we know nothing more than we did a year ago, nothing has changed. Very strange indeed.
HONG KONG (Dow Jones)--China Petroleum & Chemical Corp. (SNP), or Sinopec, Asia's largest oil refiner by capacity, said Wednesday its first-quarter net profit rose 40% from a year earlier due to a stronger contribution from its oil production business amid rising crude oil prices.
Net profit for the three months ended March 31 was CNY15.79 billion, up from CNY11.28 billion a year earlier, based on international accounting standards.
The result was in line with the average CNY15.75 billion forecast of four analysts polled earlier by Dow Jones Newswires.
Revenue rose 93% to CNY438.2 billion from CNY227.5 billion on higher crude prices in 2010.
Sinopec joined other major Chinese oil producers in reporting strong first-quarter results, as the government's CNY4 trillion ($586 billion) stimulus program boosted demand from the energy-intensive infrastructure sector, bolstering China's role as the driving force behind global oil demand growth.
PetroChina Co. (PTR), China's largest listed oil firm by capacity, said Tuesday its first-quarter net profit rose 71% to CNY32.49 billion from CNY18.97 billion a year earlier on strong energy demand.
In the first quarter of 2010, Chinese petroleum demand averaged about 8.1 million barrels a day, rising 16% from the corresponding period of 2009, according to Platts estimates. During the same period, the country's refiners together processed about 100 million tons of crude, marking an improvement of 21.6%, according to Platts.
China said it is targeting 8% economic growth in 2010 after last year's 8.7% growth, and the International Energy Agency said China could account for a quarter of the total increase in global oil consumption this year.
Sinopec processed 49.5 million metric tons of crude oil in the January-March period, up 20.4% from 41.1 million tons a year earlier. It sold 32.8 million tons of fuel during the quarter, up 24% from 26.4 million tons in 2009.
Sinopec also produced crude oil and natural gas. However, its oil output fell 0.1% to 10.4 million tons in the first quarter, while its natural gas production jumped 41% to 2.79 billion cubic meters.
The average selling price of its crude during the quarter more than double from a year earlier to CNY3,315.94 a ton, it added.
Sinopec's operating costs, mainly of crude oil, increased sharply to CNY358.4 billion in the first-quarter from CNY164.6 billion a year earlier, as the price of benchmark WTI crude oil nearly doubled to an average of $78.71 a barrel in the first quarter.
Sinopec's refineries import more than 70% of their crude-oil needs, which had exposed the firm to heavy losses in past years when it wasn't able to recoup surging crude costs from consumers due to China's strict control over fuel prices.
Analysts said Sinopec's downstream refining margins will likely be under pressure in the second-quarter if crude oil prices stay over $80/barrel.
To reflect higher crude oil costs, Beijing raised domestic gasoline and diesel prices by 4%-4.5% in mid-April, its first such move in five months.
Under China's resources pricing system introduced in 2009, refiners are guaranteed a 5% profit margin as long as the price of international crude is below $80 a barrel.
To lower the sensitivity of its earnings to its refining operations, Sinopec said earlier it is looking to increase its crude oil operation and is considering buying more overseas upstream assets, including Addax Petroleum Corp. (AXC.T) from its state-owned parent, China Petrochemical Corp.
-By Yvonne Lee, Dow Jones Newswires; 852-2802-7002; yvonne.lee@dowjones.com
Besides less trading games the reason for Aim listing is that history shows it is easier to raise money there. Also there are at least 11 other similar companys like ERHC listed there. Just a better enviroment for new emerging companies. World wide investors without the OTC reputation.
As far as a loan, yes, ERHC has vast rights in what all the reputable siesmic companies say is full of oil, so yes take that to the bank.
Remember we are all silent partners, we cant out-vote SEO. The oil is there and they will find it. Its still only a matter of time and patience.
This initial exploration wasnt really expected to hit the motherload although that could have happened. They now have real data to compare with siesmic and there test holes. At least the show has begun, sit back and relax, watch it unfold.
Why would anyone sell, its just 5 or 6 months before phase 2, nothing has changed except we have good news on initial exploration. Suckers. This was the anticiapted and stated many times by management expectation of pahse 1. They have to buy up all the smaller fobis anyway. Play or pay. I guess a few need some cash.
Good seismic in block 4 EEZ
Will the analysis they are STILL working on be shared with us?
Phase 2 is not garanteed, but likely?
"Production revenues are 5 to 10 years away."
Aim listing coming.
If phase 2 is sucessful and we sell some asset for 20 million we might make it to production before we run out of money.
They have never released any news at any meeting.