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ERHC had 13.5% Free carry w/ Noble NOW
17+% with Addax + $18 MM
by this factor BL 2 should yield us 23% Free carry + $? Cash
so 17+23= 40% + say 10% in BL 3 = 50% FREE CARRY BL 2,3,4
NOW, HOW MANY BILLION BARRELS are there ????
My guess is FAR more than everyone thought / estimated x5
2 Billion ?
5 Billion ?
10 Billion ?
20 Billion ?
30 Billion ?
40 Billion ?
50 Billion [x]
and dont forget the EEZ -
we are all going to need bigger calculators and smarter accountants
The DANE that is the Author's OPINION - not FACT IMO
What guarantee would any major have to go thru the process again -
Balance Chevron's best bet is to close a deal now!
- as time drags on every driller in the known world will be "doing back flips to get in" gee where have I read that before.
time is critical - more delay less % for them and the prices are only going up
funny they BOTH XOM/CVX had years to ante up and NEVER bid on additional blocks - maybe this is Nigeria's way of saying sorry pals - rules are rules
keep in mind STP needs Cash ASAP - they have their own round to launch that cant proceed this this round is done -
*UPSTREAM NEWS ERHC* March 3, 2006
The event was delayed until 14 March
& The blame game then swiftly subsided
Nigeria and Sao Tome delay on Block 4 signing
By Upstream staff
NIGERIA and Sao Tome have once again failed to sign off the award of joint operatorship of Joint Development Zone Block 4 to Addax Petroleum and Houston minnow ERHC Energy, despite senior officials, including Nigerian Minister of State Edmund Daukoru, gathering to do so in Abuja, writes Barry Morgan.
The event was delayed until 14 March. "This does not send the right signal to investors it is not the way the oil business should be conducted," Daukoru said.
The blame game then swiftly subsided after it became evident that the Nigerian side had also contributed to the setback.
It was understood some gaps remained in the joint operating agreement since Nigerian independent Conoil, which has a 20% stake, had yet to finalise a proposed merger with Godsonic Oil&Gas with a 5% share and so Sao Tome could not be expected to approve a production sharing contract with blank spaces.
Godsonic's key Nigerian backer died in a plane crash last year, leaving loose ends that Conoil chief executive Mike Adenuga mistakenly assumed could be tied up after the state signatories had approved the PSC.
At the same time, Chevron is understood to have entered talks with Conoil to acquire the independent's stake in Block 4 in exchange for a commitment to develop Conoil's deep-water block OPL-257 in Nigeria's own waters and possiblly reimburse the $100 million signature bonus it paid to secure the licence.
Other arguments also emerged regarding the $18 million paid by Addax to farm in to ERHC's position on blocks 3 and 4 and whether this sum should rather be paid into Sao Tome's coffers as US advisers to the Sao Tome Attorney General urged, but this notion was dismissed by the Joint Development Authority as having no basis in law.
Meanwhile, Sinopec's memorandum of understanding to join ERHC as joint operator of Block 2 remains intact, while the Chinese giant has also shown an interest in Anadarko-operated Block 3.
In addition, Chevron is continuing to sniff out equity prospects in Block 2 and BP is said to be taking an interest in Block 5.
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03 March 2006 00:01 GMT | last updated: 03 March 2006 00:01 GMT
Daukoru needs NO aploogies !!!!
just noticed - this is a re-post
Meanwhile, the minister has denied that the Federal Government has demanded apologies from the government of Sao Tome and Principe over the botched Production Sharing Contract (PSC) signing ceremony for Bloc 4 of the Nigeria-Sao Tome Joint Development Zone (JDZ) earlier scheduled for last February 24.
Contrary to reports that Dakoru demanded an apology, the ministry’s spokesman, Emmanuel Agbegir, pointed out that he merely said that it was necessary for that country to let the international partners to understand that the postponement was as a result of its request for more time to study the PSC and the Joint Operating Agreement (JOA) “to reconfirm that Sao Tome and Principe remains an investor-friendly nation”.
http://www.independentng.com/news/nnmar020631.htm
Larry / Qcala is a trusted poster no BS going back 1-2 years on RB
Meridian - thanks for your input, I share Art's gratitude for keeping us informed as the companies and Gov't involved stay silent on these issues.
You never replied to the Barry Morgan story that stated for the 2nd time in as many weeks that ERHC was in fact talking to Chevron and SEO himself !
are we still to believe this was just made up, I understand that reporter to be very cautious and big on research and VERIFYING FACTS !!!
Just was hard to believe it never happened, have you learned something new here?
It's obvious they are sitting on something special in BL 1 and perhaps BL 2
thanks again for your contribution
1 Hour 45 Minutes
I have an ERHE NEWS icon displayed - market watch perhaps
its not Business Wire
Meridian please explain "is understood that intensified lobbying in recent days by Chevron of ERHC owner, Nigerian business magnate Emeka Offor, could sway the memorandum of understanding for the US supermajor instead.
High-level talks between senior Chevron and ERHC executives continued as Upstream went to press."
**Upstream News** *ERHC* 02/24
Addax to sign West Africa PSC
By Upstream staff
Swiss explorer Addax Petroleum was expected to sign a production sharing contract this week to operate Block 4 in the Joint Development Zone managed by Nigeria and Sao Tome, writes Barry Morgan.
Addax has just completed a $350 million initial public offering on the Toronto Stock Exchange, which will fund its farm-in agreements with ERHC Energy covering blocks 3 and 4.
The Joint Development Authority expects PSCs to be signed for remaining blocks 2, 3, 5 and 6 next week, subject to agreement by Nigeria and Sao Tome.
ERHC has sought a similar deal with Chinese giant Sinopec to lead Block 4 but it is understood that intensified lobbying in recent days by Chevron of ERHC owner, Nigerian business magnate Emeka Offor, could sway the memorandum of understanding for the US supermajor instead.
High-level talks between senior Chevron and ERHC executives continued as Upstream went to press.
Chevron is understood to be interested in Block 2 even at this stage as its Obo-1 wildcat on block 1, just a few kilometers from the Block 2 border, heads for total depth.
The partners are keeping quite on the well's progress but there is talk that both oil and gas have been intersected.
Transocean drillship Deepwater Discovery's bit is now heading out of the upper horizons towards the original reservoir objective and should reach total depth before mid-March.
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24 February 2006 00:02 GMT | last updated: 24 February 2006 00:02 GMT
BL 4 PSC Signed tomorrow !!! 26% FREE Carry
+ $18 Million +++++++++ come to papa !!!!
FYI Why does this matter ????? for newbies read below
Interpretation carried out by WesternGeco has enabled the identification of fifty-six prospective structures within JDZ Blocks 1 to 9, of which seventeen were defined as prospects and thirty-nine as leads.
Of particular interest to ERHC, however, is the recoverable reserve potential of Blocks 1, 2 and 4.
WesternGeco identified six High Confidence prospects in these three blocks alone with estimated cumulative recoverable reserves potential of 4.5 billion barrels of oil. WesternGeco used reservoir parameters similar to those known from nearby fields in Nigeria and Equatorial Guinea.
Combined recoverable reserves potential of the seventeen prospects was estimated by WesternGeco to be 14.4 billion barrels of oil. WesternGeco partitioned these reserves on a block-by-block basis for ERHC’s exclusive use in the bidding and option selection process relating to the JDZ licensing round.
GREAT NEWS BL 4 Signed tomorrow with a Set Time
thanks Mark for all you do
ERHC / ADDAX ERHC 26+% FREE CARRY to first OIL + $18 Million
What a deal !!!!
Congrats all
PSCs will come today/tomorrow check Dow Jones.
News getting to the US news wires is usually delayed coming from Africa depending on the reporter's affiliations
JT go back to your "Boiler Room"
JDZ: Five Years Of Solid Achievements
By Sam Dimka
Repost - but worth a second read as we anticipate more PCSs within day[s] !!!!!
It has been five year since Nigeria and Democratic Republic of Sao Tome and Principe resolved to enter into a partnership for the development of the Joint Development Zone (JDZ), which came as a product of extensive consultations and negotiations between the governments of the two countries.
In what started as a maritime boundary dispute involving claims and counter-claims of the land bordering the two countries, a consensus that was later forged culminated in the signing of a formal Treaty in Abuja on February 21, 2001.
The Treaty derives its legal basis from the provisions of the United Nations Convention on the Laws of theSsea (UNCLOS). Specifically, Article 74(3) of the UNCLOS “encourages states with opposite coasts, in a spirit of understanding and cooperation, to make every effort, pending agreement on delimitation, to enter into provisional arrangement of a practical nature, which do not jeopardize or hamper the reaching of a final agreement on the delimitation of their Exclusive Economic Zones.”
Some key provisions of the Treaty include:
•The establishment of the JDZ in a specific area defined by coordinates.
•The establishment of the Joint Development Authority (JDA) to develop and manage the petroleum and other natural resources in the JDZ.
•The sharing of the proceeds in the proportion of 60 per cent (Nigeria) and 40 per cent (Sao Tome and Principe).
•The Treaty is valid for 45 years subject to a review after 30 years.
•Non-renunciation of claims for the period the Treaty is in force.
•A Joint Ministerial Council (JMC) to have overall political responsibility over the JDZ and to supervise the JDA.
The JDZ, an area of overlapping maritime boundary claims, is defined by 32 coordinates and covers an area of 34,540 square kilometres in the oil rich Gulf of Guinea. The Gulf of Guinea is one of the most prolific hydrocarbon provinces of the world. Intensive exploration efforts over the last 50 years have led to a succession of significant discoveries in some oil fields, notably Bonga, Agbami/Ekoli and Akpo fields in Nigeria and Zafiro and Alba in Equatorial Guinea.
The inauguration of the JDA on January16, 2002, barely one year after the signing of the Treaty, ushered a new dawn in the history of the two countries. No sooner had the JDA been inaugurated than it swung into action to work towards the fulfillment of its mandate, which include:
•To develop and manage the petroleum and other natural resources in the JDZ and
•To share the proceeds in the ration of 60:40 between Nigeria and Sao Tome and Principe correspondingly.
Upon its inauguration, the JDA carved out eleven oil blocks in the Northern part of the JDZ and articulated the fiscal regimes that would guide and regulate oil exploration activities in the zone.
Five years on, the JDA, as a corporate entity, has achieved remarkable successes in the pursuit of its mandate, considering many factors that impinge on the partnership between the two state parties. Some of the achievements recorded so far are summarized as follows:
•Spudding of the first exploratory well, OBO-1 by Chevron Texaco Corporation. Spudding of the well, which commenced on January 14, 2006, is on-going. Drilling of the well is progressing satisfactorily without pollution incident and/or accident. The well has been logged and 135/8 inch casing ran and cemented with a current well depth of 12,500 feet.
• Conduct of two Licensing Rounds, with the first (the 2003 Licensing Round that saw the award of Block-1 in April 2004), and the second (the 2004 Licensing Round that has led to the award of five Blocks (2-6) in May 2005).
•Realisation of US$123 million as signature bonus for Block-1.
• Signing of Production Sharing Contract (PSC) for Block-1 on February 1, 2005. The Operator of Block-1 is ChevronTexaco with 51 per cent equity, while ExxonMobil has 40 per cent and the remaining 9 per cent is for Dangote-Energy Equity Resources (DEER).
• Negotiations for PSC for Blocks 2-6 have almost been concluded and will be signed
•Conduct of a baseline study of the JDZ to guide oil and gas exploration activities. Samples and results are now being analysed.
•A study on the inventory of non-hydrocarbon resources in the JDZ has been commissioned and when concluded it will flag off in earnest the exploration of the non-oil resources in the JDZ.
• Establishment of the JDZ Investments, to, amongst others, pursue other investment opportunities and joint investment ventures that would yield revenue for sharing by the state parties.
That so much has been recorded in terms of concrete achievements is a reflection of the solid commitment of the two countries to look beyond the challenges they often come against with a view to realizing the goals and objectives of the Treaty.
Being an entirely new arrangement, the major challenges have to do with long negotiations, discussions and consultations on issues to build a consensus that would stand the test of time.
The delays in the fashioning and concluding contracts, which have resulted in the seeming prolonged extension of the schedule for the signing of some of the agreements, are basically a demonstration of all the parties to ensure diligence and thoroughness, avoid costly mistakes and omissions that might jeopardize their interests either in the short term or in the long run.
Within a few days away from the signing of the Production Sharing Contracts (PSCs) for Blocks 2-6, the spudding of the first exploratory well and lofty plans for future developments that will positively impact on the economies of the state parties, the JDZ development model is worthy of emulation.
Indeed, the JDZ has become a veritable tool for conflict resolution and economic integration in regional and international politics.
Dimka is Head, Corporate and Public Affairs, Nigeria-Sao Tome and Principe JDA
Cobra back in the day prior pre Offor with S.Bass and Tirman we ran out of cash and had to print shares at sub $.10 prices
300-500 MM or so was an ugly period everyone got paid in stock
2001 - EO stepped in and plugged the leak but issued a couple 100 MM as well
Called ERHC IR - cant confirm or "deny" tomorrow's PSC BL 4 signing but a Rep. from ERHC "WILL BE THERE" at the signing ceremony and an ERHC PR "should" follow afterwards was told
sounded like some champaign bottles were rattling in the background - lol
I got the feeling there was lots more News to come
the mood sure was more upbeat
I dont recall reading 1 Operator cant operate multiple blocks
where is this written?
Perhaps ERHC could be named operator LOL
Meridian any comment ... "Chevron has renewed interest in block-2 where Chinese giant Sinopec is hoping to clinch operatorship in partnership with Houston-based preferential rights holder ERHC Energy.
Senior executives from Chevron and ERHC met Thursday night in Nigeria, primarily to deliberate on the way forward. "
Kobi what about any GAS potential
JDA Website Updated Finally http://www.nigeriasaotomejda.com/
Snow - Correct! - IMO Barry Morgan/Upstream WAS RIGHT ON
the reason our PPS has risen is due to BL 1 and speculation of greater times for our minnow.
other posters had hinted at this weeks back, Big Oil = Bidding War for ERHC - What unfolds now may be life changing for many here who took the risk of investing in a company with Unproven
assets, wont be for much longer
I predict other News sources will be all over this story as the impact is HUGE and far reaching in every way
UpStream confirmed "Strong indications emerged Chevron encountered a substantial oil bearing structure"
while NOT 100% because Not from Chevron Directly this was an upgrade from ...
"Early Signs look good" and "Encouraging Signs" 24-48 hours earlier
Easy to understand something sparked a new headline - with a fresh story posted separately - **CONFIRMATION**
Otherwise the reporter would be Burned!
While the dates on BM's articles have often changed the substance on his reporting is usually dead-on and groundbreaking!
recall BM has followed ERHC and W.Africa for years and has respected contacts in the highest levels of Gov't and throughout the oil industry.
personally I feel grateful to have such a deadicated resource keep us informed all the while our company stays silent
hopefully not for much longer
Enjoy the Ride & Buckle Up !!!
Chevron success in JDZ By Barry Morgan
Strong indications emerged that US supermajor Chevron encountered a substantial oil-bearing structure during its current probe in the Joint Development Zone managed by Nigeria and Sao Tome and Principe.
Chevron has a 51% stake in JDZ block-1, ExxonMobil 40% and indigenous Dangote-EER/Afren tie-up 9%.
As Transocean drillship Deepwater Discovery prepared this week to punch wildcat Obo-1 down to TD in JDZ block-1, reports began trickling out of a far bigger-than-expected target in the upper horizons.
There is speculation that the structure straddles adjoining block-2.
Chevron has renewed interest in block-2 where Chinese giant Sinopec is hoping to clinch operatorship in partnership with Houston-based preferential rights holder ERHC Energy. Senior executives from Chevron and ERHC met Thursday night in Nigeria, primarily to deliberate on the way forward.
Neither Chevron nor Sinopec bid in the second licensing round under which blocks 2 through 6 were provisionally allocated, but both are now understood to be eyeing ERHC equity in the wake of rising oil prices and the lure of fresh reserves.
Sinopec only has a memorandum of understanding with partner ERHC on block-2, which the Joint Ministerial Council, the bilateral body overseeing the JDZ Authority - has yet to approve.
The equity markets remain ever-watchful of nascent moves by upstream players to acquire the minnow outright since that could spark a bidding war before the long-awaited production sharing contracts (PSCs) are due for signature.
ERHC chief executive Walter Brandhuber this week confirmed that both PSCs and attendant joint operating agreements were on course for signature by end-February.
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17 February 2006 17:34 GMT | last updated: 17 February 2006 17:34 GMT
ERHC Energy Room - I still cant access
OT is PAL TALK Down ???
Balance we just need 1 damm PCS -
1 PCS for our minnow takes our empty shell holding company and puts us on the oil map with a Gov't & Consortium contracted, secure oil exploration license, for what 30 years lol?
also takes much risk and uncertainty off the table
also greatly increases the likelihood of the other blocks being signed going forward
also increases the odds of us sweetening the Deals for BL 5,6 of which we have heard very little as these blocks had the least interest
also gives shareholders more reason to accumuluate as the PPS will continue to RISE "in anticipation" of more PCS news
I think that last story reversed the BL 2,4 so IMO BL 3,4 are signed and done as Walter has stated twice.
BL 2 is setting up for a bidding war and BM told me CVX wanted in badly !!!
We know China needs oil just as badly
BB thanks for sharing your good news from the JDA cheif about PCSs to be signed this month!
Also was good to read STP is setting up secure banking systems for oil revenues.
They may need a small contract with Brinks and Wackenhut
**UPSTREAM NEWS** **ERHC** & **CHEVRON**
Early signs look good on JDZ wellDespite talk supermajors keep mum on Obo-1 probe
By Upstream staff
Supermajors Chevron and ExxonMobil have encountered encouraging early signs at exploration well Obo-1 off the Joint Development Zone (JDZ) administered by Nigeria and Sao Tome, industry sources said.
The partners are staying tight-lipped abut the probe and while sources cautioned that it is too early to tell for sure, they added that electrical logs being run to evaluate the open hole were looking positive. They also said that the expected lower structures were present.
Last week, the Joint Ministerial Council reported Obo-1, which is being drilled by Transocean drillship Deepwater Discovery was drilling ahead "without pollution incident, and the well logged with 13-5/8 inch casing run at a depth of 12,500 feet".
Brian O'Cathain, the chief executive of minority participant Afren, earlier put the chance of success at 55%, citing a P50 reserves level of 636 million barrels.
Fresh evidence of the aerial extent of Chevron's Block 1 target indicates the structure straddles the boundary of Block 2 where Sinopec of China recently signed an memorandum of undestanding with US minnow ERHC to take over operatorship, sources said.
Sinopec has requested time to secure Beijing's approval of the MoU to operate Block 2.
There is also talk the structure may run into Nigerian EEZ Block 256 where Devon is operator.
Speculation about the future of ERHC also continues.
As well as contacts with Sinopec, company chief executive Walter Brandhuber was said to have received contacts from Chevron. He flew into Abuja on Tuesday night.
••ERHC this week said formal approval had been won for Swiss explorer Addax Petroleum to enter as operator of Block 4 in the JDZ.
The move follows a decision by Noble Energy to discontinue its partnership with ERHC on the licence, provisionally awarded under last year's second JDZ licensing round.
The Abuja-based Joint Development Authority has also approved Addax's replacement of Pioneer Natural Resources in Block-3 where Anadarko remains operator.
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17 February 2006 00:02 GMT | last updated: 17 February 2006 00:02 GMT
Fishdog,, refresh your screen "Updates from President/CEO Walter F. Brandhuber coming soon! "
http://www.erhc.com/
under Board of Directors
Walter F. Brandhuber, President, CEO and Director
Walter Brandhuber served as a senior consultant at CRA International Limited, in London, England, from September, 2005 until his appointment in January 2006 as president and chief executive officer of the Company. He was also a senior consultant with G.E.A.R.S Limited from July 2003. From 1999 to 2003,
Mr. Brandhuber served as a managing director and member of the board of Odin Petroleum N.V. based in London, England and Amsterdam, Netherlands. From 1999 to 2000, Mr. Brandhuber served on the board of Calverton Limited. From 1989 to 1998, Mr. Brandhuber worked at Union Texas Petroleum, his last position being vice president. Mr. Brandhuber has an MBA (Hons) from the University of Notre Dame, a BA (cum laude) from the Loyola University of Chicago and a Doctor of Jurisprudence from the University of Oklahoma.
ERHC WebSite Updated http://www.erhc.com/
Joe Blog you owe Mark for your headlines why dont you give credit where credit is due and stop being such a sensationalist
he is right you have become a copy/paste hacker
Due your "own" reporting
how many times have you called Nigeria ????????
!!!!!!!!!! JDA PRESS RELEASE !!!!!!!!!!!!!
see back in 10 minutes !!!
Upstream [BM] Should have a nice update 2nite
trader nation discussed ERHC can anyone find the transcript
http://www.tradersnation.com/channel1_tn.shtml
"Walldog" yes the EAGLE has landed
Kobi back a few years they were talking about 2 ERHCs
ERHC [JDZ] and ERHC 2 [STP EEZ]
they would break it up into 2 parts
a] maximize market value
and
b] certain oil companies didn't play well with each other
EACH unit would be given STOCK in their respective units from the participating consortium
i.e. we would keep our ER stock and get Addax and Sinopec Stock - now perhaps CVX too
giddy up
Spec I did not invest to make a mere $3, nor do I think EO or ERHC mgnt. did
more like $5-7 POST PSCs
giddy up
GREAT NEWS JDA Approval BL 3,4 and no Delay !
even if Patrice and STP pals are gearing up for a fight against Menezes and/or ERHC later this year
consider this...
They will not just be going up against ERHC by ourselves anymore ...
post PSCs ...
ERHC with our news partners CHINESE / ADDAX etc
our legal teams have deep pockets too
ALSO ... our partners must know ERHC is SOLID !!!
Something we've known all along - just needed a bit more handholding