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Total has already anounced they are bringing in a FPSO bigger than Egina & Egina South need instead of tying them into AKPO.They intend to tie-in other discoveries in the area to make use of the excess capacity. The only prospects in the area is block 1, 3 & 4. Think Total isn't confident they have something?
Farrell, I also think the revelation that insiders own 51.7% of our stock is very important. I don't think anyone would count FAB's 8% in that number.
Other stockholders have confirmed with FAB they are still holding 8% of the stock that used to be SEO's.
SEO's 42+% in the corporate filings is not changing, Someone is acumulating shares
ERHC would know if he transfered them - my understanding is he was issued unregistered shares and before he could sell them he would have to ask the company to have them registered
Did anyone else notice the slide show says insiders own 51.7% of ERHC?
I think SEO is happy with what Nepthe has done or at least not unhappy or he would be gone. He hasn't let me in on what his plan is but I am sure Peter is towing the line to keep that salary, he must have to put in 80-90 hours a year what with quarterly board meetings, flight time and international conventions to attend. If I knew what his plan was I might not like it any better than not knowing. I don't think he would put up with any incompetence, unless it fits his plans.
The thing to think about the other shells is who is the silent partner? SEO is supose to be the front for several figures in Nigeria. Someone suposedly owns half of Chrome, two someones suposedly own part of Seacrest, etc. JMHO, but SEO sets up new companies to be able to track who made how much. We wouldn't want all these silent partners fighting over profits or losses that arn't there or should be someone elses.
Nepthe is still there because he is doing exactly what SEO wants, if he was gone SEO would find someone else who was willing to do exactly as told for his quarter million per year, again JMHO.
Whats the cost of being a Platnum sponsor for an Oil & Gas conference? I bet they add up fast.
Ponzi, when do you think they actually go to the corporate office? Once every three years for the corporate annual meeting, when making a video? They would need someone to come in and dust their chairs. You can't get Arsenal football in texas.
Mid, if I thought ERHC was supose to be or become a oil company I would have never bought in. It was plain from day one that they did not have the expertise or the money to hire the expertise and develop any investments on their own. I expected this to do one of two things, either it would get bought out on Offors terms and we would make money or we would hold until the assets were developed by our operators and we would sit back and collect our payouts. Before Blair, they had more chance of developing a championship bridge team than a oil company. Some of the things Peter has stated have scared me because he might actually try them.
DeGen, just to let you know your post are being read I'm responding. In my opinion the block 5 & 6 negoation has been drawn into the whole JDZ forward plan. I believe those two blocks and the block 2, 3 & 4 situation with the 25% give back is part of what is going on. Would you want to relinquich 25% of the acreage before you were absolutely certain where all the oil/condensate/gas is? I don't think SNP wants to either. JMHO, but I believe SNP has found enough in the five wells to keep their interest in the JDZ. I think Total is leading the way with its two block 1 wells, this doesn't mean the JDZ is full of oil, but I think SNP has found enough indications they are not ready to give anything up.
My not complaining about management doesn't mean I am happy with their performance. I just don't think changing would bring anyone more competent into the picture. I believe Peter was chosen for other qualities and whoever replaced him would be chosen for the same reasons.
Erdo, I knew they were in negoations over the two blocks and believe, JMHO, that the fact they pulled it back from the court indicated some wider agreement was being pushed. My understanding, and I may be wrong (it happens)is that since they had issued the development rights in a round of bidding and the winners defalted on their terms, that JDA can negoate with others to allow a reissue of the rights. I am expecting some anouncement that Total/SNP is getting the operatorship and the other 85% as part of the settlement. Which means we may not hear anything till after block 1 drilling. I don't know anything but think its in the overall plan.
cimmaron, there really hasn't been anything to comment on. Until there is some kind of news there is not much to say. I, myself have no sources good, bad or indifferent that can't be found by anyone with good search ability on the internet. Until our company, our operators or the JDZ release something I don't expect much posting.
I don't expect any news till the block 3 & 4 negoations, the wells are drilled in block 1, the EEZ agreement is negoated or the block 5 & 6 arbitration is finished.
What I would really like to see is something happeniing with the First Alantic stock. In my conspiracy filled mind, SOE will move on that stock before there is any market moving news to reach our ears.
We don't know because they haven't told us yes or no. The have said they found Bio-gas but have not said that was all that was found - when ask to say there was no thermo gas Dan took the fifth and said the company was not in the habit of stating what wasn't found - however they did say they didn't find oil - strange, they are not in the habit of stating what isn't found?
Could be true, we don't know. We don't know what they expected to find & what they did find, they are not talking. The company has said many things including that these wells were not intended to be producers, just to find out what we did have in the JDZ - If they did we haven't been told. We haven't been told what they expected and how what they found differed from what they expected. Uncertanty is not the markets friend, hence our stock price.
My opinion is that Ntephe was put in place by SEO and "friends of SEO" and is doing what he was hired to do. He hasn't been replaced and won't be as long as he keeps doing what he is supose to. Not necesarily what all of us would like him to. If he were replaced we would see someone who would be doing the same as he is, thats the job description and as long as SEO and friends control the majority of the stock, it will continue on in the same mannor.
Our problem with his performance is we are not party to the "plan" for ERHC and don't know why things are being done or not done as they are.
Since we have never really been given the results of the first five wells drilled or the SNP analysis of them which took a year plus, we can't say they were not 100% accurate in their estimates.
Dr J, I feel the same way, they haven't told us much of anything about what they did find, but I believe its not a total bust, at least not yet. If it was a total bust I believe SNP would have walked by now. I think the fact they are asking for more time means they don't know exactly what they do have and how to handel it. The NSAI says there is a lot of something down there & SNP is not ready to give up on it yet.
I think SNP's roll would be the same as CNOOC's roll in Akpo. They will sit back and try and control where and who the oil/gas/condensate is sold to, specfically to them. SNP has not had a lot of deep water experiance and Total's methods are considered cutting edge. JMHO, but I think SNP has had Total helping with the analysis of the first five wells, either as a consultant in the original analysis or as a reviewer after SNP's analysis. I don't pretend to know what they found down there, but we have been told it wasn't what they expected, how good this is we don't know yet.
My belief is that it wasn't totally bad or SNP would have walked instead of asking for extensions. Again, my belief is that SNP was unsure of just what they found, but that it wasn't totally bad or fantastically good, but they are not ready to spend more money till they figure out exactly where and how to do it.
In comes Total, with new methods and knowledge, information gained at Akpo and elsewhere, but especially Akpo, something like 30 KM away in the same formations. Egina and Egina South are right next door. They have the team that just developed Akpo and now need a new chalange. Starting with block 1 and hopefully encompassing the whole north end of the JDZ.
They have some problems to deal with first, block 5 & 6 arbitration, control of block 7, 8 &9. the 25% acreage release, minor players, etc. I don't think we will see anythink fast.
Also, I believe we will see SEO make a move of the FAB stock before anything actually happens, that 8% of the stock represents 20% of his holdings and I don't think he wants anybody else to profit off of stock that used to be his. I think he knows enough of what is going on that he knows when he will have to comit his assets to get it back before we see something happen. Why would anybody buy it back at this time, when ERHC is selling for .11 to .12? I think a move on this stock is going to be the first indicator things are happening. I also believe, in my little conspiracy driven world, that the FAB stock was dropped from the SEC filings to make it disappear. If SEO buys it back himself it will raise his ownership from 43% to 51 again, but SEO is suppose to be the big front man, I am sure he can find someone to front for him or his secret partners.
I think SNP is waiting for Total, and their new FPSO, to take charge and develop the whole JDZ as one development. JMHO, Total has been with the chinese on several developments and it wasn't till after our five wells were under study that any involvement by total in block one was mentioned.
I started buying in 2004 or 2005, right after Chevron anounced they were drilling OBO-1. I had been watching this stock for a couple of years and thought the ERHC price would be affected (favorably)by the block 1 drilling. I believed in the assets then and was suprised when nothing major happened with the stock price after Chevron released results.
Then OBO-1 just disapered for a while & there was the news from chevrons manager in nigeria who said it wasn't enough to develop on its own because of infastructure costs.
Remember, block one is completely surrounded by other peoples leases and is something like 170 KM from shore. FPSO vessels are not cheap either.
Total has OML130 right next door, the FPSO at AKPO is pretty well maxed out but they are bringing in a simular one at Egina that has plenty of excess capacity, other than Egina south all thats in the area is block 1 & 2 of the JDZ, OML 130 doesn't have any other prospects. It looks pretty confident to me.
Ponzi, your talking about the First Africa Bank shares, which were not sold and were very openly disclosed. Those shares have been listed, in the companies 10k, untill last year. This was not some secret sale by Offor as you imply.
Why do you keep distorting old information you know you will be called on?
Show me one time our management has pumped/proped up share prices. I have owened this stock for seven years and I haven't seen one.
Our management only knows how to make share price go down & watch the Arsenal play football.
Sinopec knows much they are not talking about,good or bad
Kingpindg, Dana has asserted that the third block 4 well was not authorized & they don't have to pay any share of it. We had discussions back when they were drilling about what a third optional well was and why they would have to drill it & no one, on the board, knew what triggered the option to drill the third well
I think they still represent the same shareholder they always have - he already cast his vote & whatever the rest of us do is not material
I don't know what anyone else remembers but my memory tells me Addax has another block that need to have a well drilled this summer, I thought May, but I was never sure, it may be June-July
or it may be just scheduling it could get a couple of months extension. It would be hard winning a arbatration over 60 days when drill ships have been hard to schedule
doesn't the SEC require a filing when you acquire 5% of the outstanding stock - we just acquired 5.8% of the existing outstanding stock
Majic, I have often wondered if Peter was catering to SNP's desire to keep the news quiet for a special reason. The chinese have tried to make several oil property buys in the last two years and seem to be doing better either buying an existing company or financing a deal (like Brazil, where they will be paid in oil)to get access to oil - Oil is what they want & I don't think they care whos name is on it, as long as they get it. SEO is suppose to be a big Nigerian front man - maybe Peter is setting up to front for SNP - he finds the property, SNP finances it and gets paid in oil. If Peter makes some ERHE money on the way its OK as long as they get SNP access to more oil.
Peter has shown them he knows how to keep his mouth shut when they tell him to.
I just checked on the two drillrigs that Total had at Akpo, the Deepwater Discovery and the Jack Ryan. Rigzone says the Discovery is in Brazil and Total still has the Jack Ryan in the GOG
Thanks John, I was wondering what the rights are within a OML, I haven't seen anywhere else that you were expected to release any of the original lease territory & wondered if it would be a problem in developing something like block 4.
Maybe AA can tell us if something like the gas line from Akpo to Bonny Island Gas plant have to buy or arrange easment accross the OML's between 130 and the Island? I know FPSO's are put in place because it is cheaper to pick the oil up from a floating terminal with a tanker than to build a pipeline from the development to the terminal on shore.
The FPSO's arn't cheap either, the one for Egina sounds to be as large as the one for Akpo
Krom, what I see as a real problem with the 25% relinquishment is if the JDZ needs to be developed as a single field giving up that space may interfear with the Total subsea system that would unite all the prospects in an area to a single FPSO not necessarily located in the emediate area.
Total recently anounced it had purchased a FPSO for the Egina development that would be able to have capacity for additonal development (Egina South and Block one? or maybe block one and two?)
Can you run your subsea system over teritory you have relinquished? Can someone else acquire that 25% and choose to drill where it causes you difficulty, maybe just to be paid not to develop. Could this be part or all of the problem with going to phase two?
If you look at the subsea system at Akpo, it covers the whole prospect area, manifolds tied to other manifolds, injector wells tied to a common system for all twenty, look at block four in the Ibox, how do you tie all those together and give up 25% of the block?
Getting into the 25% give back - do any of the oil people know about OML rights? If acreage is relinquished can you still cross it with manifolds and pipes subsea to tie several discoveries together like Total has mentioned?
Petemantx, whatever is developed from the JDZ is not going to effect china's supply this year. I can think of several things SNP may be discussing with the JDZ.
1) operatorship of block 5 & 6 is open and if I am not mistaken the JDA can award them by agreement since they have been through a bid round & winners defalted
2) on comencment of phase 2, the operator is to give up 25% of each blocks area for reassignment, that looks dificult to do in block 4, if the JDZ needs to be developed as one field, do you want to give up anything?
3) if they want to develop with tie in to Akpo & Egina w/total will JDZ allow them to move all test wells to block 2 to meet requirements-as they develop from the top down
Just some possibilities, JMHO
Kingpindg, I would think you could say that someone who owned somewhere between 42 and 51% of the outstanding stock was "linked to ERHC"
Not a hard connection to make
no, the JDZ blocks that have been auctioned are on the delta thrust (JDZ block 1-9) and different from the rest of the JDZ and the EEZ - look at the Ibox & the Erhc web site
ERHE has two preferential no fee blocks, Offor owns almost half of ERHE. If Offor owns part of Oranto it is probabily less than Eze owns.
No matter, if I was Offor and had first pick guranteed and had to bid aginst other companies for any other blocks, my first pick(in ERHE) would be my top choices, locking them in. There is no gurantee any other company he was associated with would not be outbid.
My guess is that block 4 & 11 are the first two choices, EEL took block 5 & 12 are third & fourth choice and block 3 is the fifth best pick.
Blocks 2, 3, 4 &5 had the most seismic available and 2 & 3 were not picked in the preferencial round, that says to me 4 & 5 were the best looking blocks in zone A. The other two picks had to be from zone B.
This is all from the geology, I was taught the only instrument that can tell you what you actually have, is a drill rig. It can all look good but until you actually drill its all swag.
amj23, what I find interesting is that Hess is drilling 16,400 ft deep in 6000 ft of water. Our wells were about 12,000 ft deep in 5000+ ft of water. Why are our wells so shallow by comparison? where we are located on the delta floor looks to me like the formations would be deeper than closer to land. Am I missreading the charts?
The more I think about it I think it was OPL 291 since nothing had been drilled and the prospect was unusual - named Merlin I think, not an african mane like Kina or Akpo.
This could be the one well addax has to drill in 2011, both block 3 & 4 can be secured by simply agreeing to phase 2 with the JDA, and having two years from then to spend the money.
What I am concerned with is Addax's other block that was discussed when they had the Deepwater for four wells. Addax had a block either OML 291 or OPL 291 that had to have a well drilled by midsummer 2011, I thought I remembered may but it could be later.
Some posters thought it was a sign of good news that Addax drilled at Oki east (the optional third well) instead of OML 291. Maybe YankeeMike has something on this.
Two things to think about - one Addax had another block they had to drill a well in by may of 2011 - I think it was OML 291 that could be where they are drilling. I have not heard anything about it since last fall.
Second Total anounced a month or so ago they were buying a FPSO for Egina & Egina South, originally they were to be tied into AKPO. This FPSO would be located just outside block 1 border & as I mentioned before Total still has two drill ships developing Egina and then Egina south. SNP was able to "borrow" the Sedco 702 to drill one well in block two when Shell was moving it from one site to another.