BB: Just a Few Questions?

1)Are you still holding out for a Pre-drill deal? Since somewhat of a public statement by SNP says Drilling to start 08/27/2009.
2)Was the AXC-SNP the Pre-dill deal?
3)If SNP is going to buy ERHC, Will JCG be using his billions made from the AXC sale to make an additional score on the alledged take over of ERHC?
4)For the Record the 2.77 billion barrels of possible reserve I stated came from AXC website.


Looking forward to your Views
Sneak

Less than 48 hours until the Drill bit hits the MudLine!

JMO
Sneak

Opus: I think SNP stay on the blacklist will be short lived! Once Iraq wakes up to the fact that China pays the most money for any prospect. The powers that be in Iraq will have a change of heart! AXC did not have the Money or the Heart for such a stand-off.


JMO
Sneak

It's Not to Late It's only .88, All Aboard!


Sneak

Posted by: sneak-attack Date: Saturday, August 22, 2009 10:06:27 PM
In reply to: None Post # of 6915

BB: I'm Sorry, but the Pre-Drilling deal has already taken place with SNP takeover of AXC. SNP paid just $1.40 a barrel for AXC'S JDZ NSAI numbers.

With AXC out of the way, ERHE'S NSAI numbers are Know INDISPENSABLE!! ERHE'S % have become the most valuable piece of real estate in the ZONE!

I believe SNP will pay a very large Premium to SEO and his Nigerian Friends after the drilling results bring into clearer focus the true potential of the JDZ. This Premium may score political favors with Nigerian and STP government officals behind the scenes.

I believe SNP may pay $10.00 a barrel for provable JDZ OIL.

Looking forward to your viewpoint.

JMO
Sneak

Kuxe: The Political infighting has delayed progress with this company for to long. For All the Promise that AXC could bring to SNP, Which now has some doubts in Iraq. SEO brings a termendous amount of Political Sway with Him. I'm Betting the Premium will be much higher than what AXC sqeezed out.


Have a Nice Day
Sneak

Majic: As Paul Harvey would say "Now you know the Rest of the Story"!


Thank You
Sneak

Today is "D" Day.


JMO
Sneak

Today is "D" Day.


JMO
Sneak

RED: BRAVO!! I could not agree more! ERHE'S % are INDISPENSABLE TO THE CONSORTIUM!

Thank you Red
Sneak

HP: AXC had 2.77 bbls of unproven reserves for all their holdings. When one strips out the 536 miilion barrels of proven @ $8.00 a barrel, The Balance works out to be about $1.40 a barrel for 2.77 billion barrels of unproven reserves.

When ERHE was selling for .70 a share that was for the NSAI # of 336 million barrels. Now that drilling is starting, The price will rise in relation to the amount of public perception that the drilling results may prove up.


JMO
Sneak

Yanke: This all revolves around the drilling campaign and how smooth the EEZ auctions pan out. The Consortium of companies that may develope the JDZ and the EEZ maybe SNP,CVX,XOM, and Petrobras. If SNP takes out ERHE and the EEZ rights, One may see SNP swapping some EEZ % in order to gain Concessions in Offshore Brazil in order to Diversify their Position.


All JMO
Sneak

Yanke: I put fourth Probable, So as to allow for SNP to pay a very large premium without being tied to hard numbers that maybe less than what they are paying for and yet cover the estimated and probable numbers for blocks 5,6 and 9 plus the EEZ plus Political Considerations.


JMO
Sneak

Posted by: sneak-attack Date: Saturday, August 22, 2009 10:06:27 PM
In reply to: None Post # of 6894

BB: I'm Sorry, but the Pre-Drilling deal has already taken place with SNP takeover of AXC. SNP paid just $1.40 a barrel for AXC'S JDZ NSAI numbers.

With AXC out of the way, ERHE'S NSAI numbers are now INDISPENSABLE!! ERHE'S % have become the most valuable piece of real estate in the ZONE!

I believe SNP will pay a very large Premium to SEO and his Nigerian Friends after the drilling results bring into clearer focus the true potential of the JDZ. This Premium may score political favors with Nigerian and STP government officals behind the scenes.

I believe SNP may pay $10.00 a barrel for provable JDZ OIL.

Looking forward to your viewpoint.

JMO
Sneak

BB: I'm Sorry, but the Pre-Drilling deal has already taken place with SNP takeover of AXC. SNP paid just $1.40 a barrel for AXC'S JDZ NSAI numbers.

With AXC out of the way, ERHE'S NSAI numbers are Know INDISPENSABLE!! ERHE'S % have become the most valuable piece of real estate in the ZONE!

I believe SNP will pay a very large Premium to SEO and his Nigerian Friends after the drilling results bring into clearer focus the true potential of the JDZ. This Premium may score political favors with Nigerian and STP government officals behind the scenes.

I believe SNP may pay $10.00 a barrel for provable JDZ OIL.

Looking forward to your viewpoint.

JMO
Sneak

AA: Hard to say. I do not believe SEO will be selling short.
The drilling results will be used to better understand the oil formations in the JDZ. This understanding will be used to evaluate the other targets in other blocks in the JDZ.

If the Drilling Results are Stellar, The Results may be kept close to the vest and SEO will sits tight and wait for the EEZ auctions results before announcing a Deal at or above the Gap.

If the Drilling results are less than Stellar, We may get a Deal in the Gap.

In any event, The Deal may take place before Offical Results are Known Publicly.

JMO
Sneak

Try: Thanks for the PM. T-3 Days and some one will be eating HUMBLE PIE! LOL

Best to You and Your Family
Sneak

HP: NO Sir, Say it is not SO! LOL Ruby1100 Knows my bother inlaw very well, I'm for sure am not the "Slippery One". I was on "RB" before switching to IHUB. 9 years of steady buying and have never sold a share! Trying to confirm Oily's BS is like Panning for Gold at one of North Carolina's Ruby Mines, Utterly Fruitless. Just keeping it Real.


Have a nice day.
Sneak

Afri-Gold: Tic, Toc, As Much as I respect and look forward to BB post, I'm sorry to say the clock is running out on a Pre-drilling Deal. T-3 Days and Counting.

Thank You for the Update.
Sneak

HP; Who's b-day does mine resemble?

Just Curious, No harm Intended.
Back to work looking for Factaul Info.
Have a Great Day
Sneak

China Partners with 40 Countries on Energy Cooperation
Xinhua Economic News|Thursday, August 20, 2009

China has teamed up with 40 countries or regions on energy cooperation and established national-level bilateral energy dialogues with 36 countries, said an official with the National Energy Administration in Beijing on Thursday.

China has also joined 22 international energy organizations and forums conducting multilateral negotiations and discussions.

Since the country first adopted its opening-up and reform policy in the late 1970s, China's energy industry has evolved from one of self-reliance to emphasizing international cooperation.

It now delves in oil and natural gas, uranium, coal, electricity , wind power, bio-fuels, energy savings, and energy technology facilities.

Besides the upstream exploration and development sector, the midstream and downstream sectors including refining, processing, stockpiling, and retail, have also now opened up to foreign investors.

The official said that the country's strategy of diversifying its energy supply has been basically realized via major strategic energy corridors such as the Sino-Russian crude oil pipeline in northeast China, Sino-Kazakhstan gas and crude pipelines in the northwest, and Sino-Myanmar oil pipeline in the southwest, and the sea-route oil supplies from Indonesia, the Middle East countries, and African countries.

China will resume its energy dialogues, cooperate with foreign countries, and remain dedicated to world peace by upholding the energy security principals of win-win, cooperation, and diversifying development, said the official.

Copyright 2009 Xinhua News Agency

Boy o Boy, Why does Pre-salt and $10 a share bring out such confrontational responses? We are all riding the SEO Train together, So if someone believes this train has a possibility of derailing before it's final stop, They can pull the conductors chain early (Sell) and get off the Train. I do not think anyone will stop them. If someone wants to ride this Train to the final destination God-bless Them, It is their own Choice or Personal Risk. When This Train Finally Pulls into the Station for it's Final Stops, I believe we may all be Pleasantly Surprised.


Take it Easy and Peace to the Board
Sneak

Sorry Homeport: Sometimes owning this stock is like being on a Unproductive Rabbit Hunt. With All the dogs barking(chatter) the excitement can get interesting and still no Rabbits is sight. I could not resist the chances to Kick the Briar Patch one more time, In order to flush out a few Dots, Pardon me I mean Rabbits. As Always it Proved Fruitless. As Crappie said "Nobody Knows Nothing".

Today is another day of Huniting down the Facts.

Have a great day
Sneak

I Believe BB said it takes about 5 days for Barry Morgan to take a story and work it up before it hits the Press. On 08/14/2009 ERHC had its highest Volume day in recent history and NOW 5 business days later we have the Second Largest Volume day in recent history. Maybe Oily's Upstream article may bear some weight or Is it just wishful Thinking on my Part?




Back to work
Sneak

Yankee: Yes, I do Agree!

Have a great day
Sneak

Yankee: It sounds good. Was it Ricklan who predicted about $6.00 a share several years back when oil was $50.00 a barrel. With Oil nearing $100 a barrel in 2010. I think we may get much more than that.

JMO
Sneak

Sorry Homeport, Just shooting my own 3-D seismic survey and probing the chatter structure for more Leads. LOL


Sneak

Oilphant: Is the Chatter North of $6.00 yet?


Sneak

BSK: Maybe Gandur seen the hand writing on the wall!

Posted by: sneak-attack Date: Wednesday, August 19, 2009 10:04:04 AM
In reply to: balance_builder who wrote msg# 6670 Post # of 6674

BB: I hope it is Soon, It maybe time to Giddy-up! Contrary to what people may think about China being Financially Independent and Free to do as they see fit. My Timeline and Political Leeway for a Deal Comment is based on the Following Report

2009 STRATFOR.COM Diary Archives

Beijing and Its Bubble
Encouraging economic growth in a recession is a touchy business. Tax cuts can work if they trigger consumption and investment (assuming that consumers are not too shell-shocked). Lowering interest rates is another good tactic — it should drop the cost of getting a loan or using a credit card, making it easier for consumers to make and finance a purchase.

But what if you are in a state that doesn’t have a well-developed tax base? Or where interest rates are already below the rate of inflation?

This is the problem that China faces.

Social stability and national unity are considered such high priorities in China that Beijing essentially bribes the population and the regions with subsidized credit to keep them in line. Nearly anyone can get a loan for nearly any reason, so long as they employ people. Tools that Western states use in recession are used in China all the time. So when recession hits, there are no “emergency” tools to be broken out — they are already in use.

China has squared this circle by force-feeding credit into the system, and more than $1 trillion in loans has been pumped out thus far in 2009. But in this flood there has been negligible regard for the quality of the loans — meaning the recipients’ ability to repay them. In a system that glorifies subsidized credit, there were never many checks in the first place, save the ability to employ workers over the medium term. Now, there are no meaningful controls whatsoever.

“Social stability and national unity are considered such high priorities in China that Beijing essentially bribes the population and regions with subsidized credit to keep them in line.”
And the Chinese know it. STRATFOR sources in the Chinese financial world — private and public both — estimate that about half of this flood of lending has gone not into normal economic activity, but into speculation in real estate and in the stock market. Whenever there is a virtually unlimited amount of cash being put toward something that exists in limited quantities — such as land and stocks — bidding wars ensue and prices explode.

The Shanghai Composite Index has already risen more than 50 percent since its March lows, a bull market completely divorced from any semblance of market fundamentals — and most likely as a direct result of the government’s lending policy. People (ranging from small businessmen to managers of the large state-owned enterprises) take out loans with few controls, sink the cash into the stock market and watch prices rise impressively. But this works in reverse as well. Since there is nothing but speculation holding the market up, any number of things — for example, a loan payment coming due — can cause someone to pull their investment out, resulting in a price crash that has the ability to gather speed and size like a snowball rolling downhill.

On Monday, the Shanghai Composite Index plunged by 5.8 percent. This probably can be explained by a combination of local factors and does not necessarily herald a stock crash — much less a broader, systemic crash. But the fact remains that, regardless of how stable one believes the Chinese financial network to be, injecting half a trillion dollars in loan-based investments into it in a few months is precisely the sort of activity that would trigger a bubble were one not there already. And the events seen Monday are precisely how it could all start to fall apart.

More Dots Please
Sneak

BB: I hope it is Soon, It maybe time to Giddy-up! Contrary to what people may think about China being Financially Independent and Free to do as they see fit. My Timeline and Political Leeway for a Deal Comment is based on the Following Report

2009 STRATFOR.COM Diary Archives

Beijing and Its Bubble
Encouraging economic growth in a recession is a touchy business. Tax cuts can work if they trigger consumption and investment (assuming that consumers are not too shell-shocked). Lowering interest rates is another good tactic — it should drop the cost of getting a loan or using a credit card, making it easier for consumers to make and finance a purchase.

But what if you are in a state that doesn’t have a well-developed tax base? Or where interest rates are already below the rate of inflation?

This is the problem that China faces.

Social stability and national unity are considered such high priorities in China that Beijing essentially bribes the population and the regions with subsidized credit to keep them in line. Nearly anyone can get a loan for nearly any reason, so long as they employ people. Tools that Western states use in recession are used in China all the time. So when recession hits, there are no “emergency” tools to be broken out — they are already in use.

China has squared this circle by force-feeding credit into the system, and more than $1 trillion in loans has been pumped out thus far in 2009. But in this flood there has been negligible regard for the quality of the loans — meaning the recipients’ ability to repay them. In a system that glorifies subsidized credit, there were never many checks in the first place, save the ability to employ workers over the medium term. Now, there are no meaningful controls whatsoever.

“Social stability and national unity are considered such high priorities in China that Beijing essentially bribes the population and regions with subsidized credit to keep them in line.”
And the Chinese know it. STRATFOR sources in the Chinese financial world — private and public both — estimate that about half of this flood of lending has gone not into normal economic activity, but into speculation in real estate and in the stock market. Whenever there is a virtually unlimited amount of cash being put toward something that exists in limited quantities — such as land and stocks — bidding wars ensue and prices explode.

The Shanghai Composite Index has already risen more than 50 percent since its March lows, a bull market completely divorced from any semblance of market fundamentals — and most likely as a direct result of the government’s lending policy. People (ranging from small businessmen to managers of the large state-owned enterprises) take out loans with few controls, sink the cash into the stock market and watch prices rise impressively. But this works in reverse as well. Since there is nothing but speculation holding the market up, any number of things — for example, a loan payment coming due — can cause someone to pull their investment out, resulting in a price crash that has the ability to gather speed and size like a snowball rolling downhill.

On Monday, the Shanghai Composite Index plunged by 5.8 percent. This probably can be explained by a combination of local factors and does not necessarily herald a stock crash — much less a broader, systemic crash. But the fact remains that, regardless of how stable one believes the Chinese financial network to be, injecting half a trillion dollars in loan-based investments into it in a few months is precisely the sort of activity that would trigger a bubble were one not there already. And the events seen Monday are precisely how it could all start to fall apart.

More Dots Please
Sneak

BB: Maybe The Pre-Drilling Option should be called "The Pre-Proven" Option, Since drilling is so close. When the True Extent of the Oil Bearing Structures in blocks 2,3 & 4 comes to Light and are Privately Known and After Drilling and Before Proven, SNP may have more Political Leeway is filling the "GAP" that SEO Wants, Whatever that number happens to be.


JMO
Sneak

emdyal: Time is running out on the "Pre-drilling Deal" option, T-5 days and counting. A Deal, If possible, Should read "Before Proven", That is Before the Amount of Proven JDZ Oil is Known Publicly a Deal May take Shape. Only after the Deal is made will the public know the Proven Oil Amounts.


JMO
Sneak

BSK: I do not beleive that SNP can give SEO what he wants for Possible Reserves with out making it look like a Big Political Windfall for the Large Majority of Nigerian Political Higher-ups that own shares of this company directly or thru Chrome and or Atlantic Bank of Nigeria. Having said that, The Framework for such a deal may have been discussed. When the amount of oil that ERHC has comes into clearer focus (Kina drilling). SNP may fill the "GAP"!


Have a nice day
Sneak

BB: I did not mean to labor the Point. T-7 days until Press Released Drilling Starts. All options are still on the Table until other events surface (The Game Changer), Thus Changing the course of Events to Favor One option over the others. As the Clock runs down (2 minute warning), The Game Should Get Exciting! Who blinks First!


Always look forward to your Post!
Thank You
Sneak

BB: To get back to todays original question? How does the drillships being on sight and or drilling about to start as per press releases, or Rigzone already drilling, Oily's Large find and ERHC not ERHC anymore, Relate to your opinion from your December 2008 post? Is this Option off the table or still a possibility? The Clock on a Pre-drilling deal is running out! Does Oilphant have a timeline as to when ERHC is Not ERHC anymore?

Thank You
Sneak

Posted by: balance_builder Date: Saturday, December 13, 2008 4:21:29 PM
In reply to: None Post # of 6612

Financial positioning/acquisition thoughts:
As recent as this week Dan Keeney confirmed that ERHC remains WITHIN their previously stated guidance regarding acquisitions and moving to a new stock exchange.

Guidance for making acquisitions ENDs at the end of April 09 and guidance for listing on a new stock exchange is up in December 09. This means the company is confident ERHC's sp will be in excess of $4 in December 09 AT THE LATEST!

Just how could that be as we linger in the low teen pennies right now?????

Well, for one thing ERHC has told us they are looking at acquisitions around $84 million dollars. $84 million dollars. $84 million dollars. Thats a BIG number by all accounts!

Next: How in the world could ERHC finance anything of this magnitude? They've told us the answer to this question too. Most likely through the issuance of new shares.

ERHC has further told us they plan on owning non operating interests of assets and will partner with a reputable oil player. A safe assumption that the same reputable oil player can also serve as operator of the asset???? I would think so...but that is supposition on my part.

One step further: ERHC has indicated they are looking at deepwater interests (not soley). So, connecting dots, any reputable oil player capable of operating in deep offshore assets is likely to be big as the little boys don't have the capability or the funds to operate in deep water.

Next step: Who??? ERHC has told us "new partners". That EXCLUDES Addax and Sinopec.

Next: Property will be revenue producing or very close to revenue producing. That spells REVENUE and CASH FLOW.....something the market likes to see.

Next: The market also likes to see diversification....so as all the eggs not in one basket in case of problems. ERHC has told us they are looking at assets in North America and West Africa. In fact, we've been told they had professionals looking at the assets' "RESERVES" and this came to us back in August.

Altogether: New large producing (or close to producing) assets holding a non-operating position with a partner who is a reputable oil player.



Notes from August CC:
"Peter N's comment of being very very certain they will be able to grow the co 4,5,6 or even 7 times its current size before JDZ oil......speaks loudly as to what they are looking at doing. He was getting very defensive when making this remark so I put some weight on these numbers being accurate in terms of what he's thinking. He firmly seems to like our future as he stated, "..seeking assets at the moment we have a definate good strategy in place."
http://ragingbull.quote.com/mboard/boards.cgi?board=ERHE&read=108621


How??? How???? How????

First, ERHC doesn't touch their cash....they make the acquisitions via debt (leveraging only the new assets) and via issuance of new shares.

New shares issued at .12 would pizzzzz every shareholder off in a major way. I continue to "think" new shares would be issued at a substantial premium to today's sp. Substantial. Why would a reputable oil player want to team up with ERHC?

How about for a piece of ownership of what ERHC already has??? The JDZ! SEO has stated he doesn't want to sell this side of $10......HOWEVER.......suppose he told the prosepctive partner ERHC would be willing to add new producing assets to its portfolio to ENHANCE THE SIZE of the company and speed up its growth. Surely putting proven oil, revenue/cash flow into its operations would be good for existing shareholders and especially good for SEO.

Ok...but why would a reputable oil player want to do this? Especially if they have to buy shares at a premium over the current sp? Simple answer: ERHC is SEVERLY UNDERVALUED. IF the new partner knows this and that ERHC is currently valued at say $2.60 per share and they can buy shares (and assist in adding the new assets) at say $1.50....their investment is solid. They may even follow up their new ownership percentage of ERHC with a buy-in and attempt to secure controlling interest (which...if they are truely a reputable player....it benefits all shareholders).

All said, the acquisition talk and forming a new partnership(s) isn't conjecture....our own company has stated this time and time again....and we ARE within their stated timeframe for this occuring and they HAVEN'T changed their guidance for this to happen. We are 4.5 months from the latest date this will happen according to ERHC.


My thoughts???? If ERHC is to involve itself with a truely reputable oil player....I LOVE it. I am very harsh on this co's management team and the lackluster effort they've demonstrated thus far in supporting our market value to asset value (shame on BOD's as this is their DUTY).........but the issuance of new shares will probably receive shareholder approval if we're beat to the ground first.

All said: ERHC is working on some very large deals (per ERHC management...not BB). Very large when your talking $80 million or possibly more. Acting CEO Ntephe seems very confident their strategy is wise wise wise in terms of growing the company.


The company has little worry about the current sp (at least that's my take). A big partner would bode well for us. With these size numbers ($84 million) we will be more than just fine!

Shareholders ought to remember the timelines the co has given us and focus on those two events....acquisitions and new exchange. The keys IMHO.

KNOC as a partner? Sure would make sense knowing SEO tied up with KOGAS with his Chrome Services. While I'd prefer a US oil company....KNOC would be considered reputable.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33834810

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33836826

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33841601

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33854375

BB: What is your opinion on what the "Gap" number maybe?


Sneak

BB: Sounds Good to Me I'll take it. I think the Candy may drop in mid to late October "The Harvest Month". Hence the term Trick or Treat. But if it comes early I will not complain!


Have a great day BB
Sneak

BB: If the NSAI number doubles with drilling results the $10.00 a share attributed to SEO, The Gap maybe Filled.
Could we have an October Surprise! Trick or Treat!

JMO
Sneak

Thanks ruby: I do not have to do any more T-6 days and counting.


Sneak

BB: Sorry for the late response.
See the Washington Post article from 07/30/09.

Both Exxon, based in Irving, Tex., and Shell, with headquarters in The Hague, are struggling to maintain or increase oil and natural-gas production in the face of natural declines in old fields. Exxon's oil and gas output fell 3.3 percent, to the equivalent of 3.68 million barrels a day, though it said part of that was a result of mild weather and low natural-gas use in Europe. Shell's output fell 5.3 percent, to 2.96 million barrels a day.

But both companies said they remained committed to big projects aimed at boosting their output over the next few years.

I would not discount big oil's involvement in the JDZ just yet. The Fat Lady has not sung yet. Yes the first piece of the puzzle will close shortly. The next stage is forming, The Chinese government allowed SNP to buy AXC because of current production and proven reserves plus probable reserves. SNP get an immediate revenue stream on their investment and the value of this investment will grow with proven oil. I do not believe that SNP would be allowed to fill the Gap and buy ERHE for what SEO wants based on probable reserves. Hence Drilling results, Known only to the people involved. Once this Number comes to Light, The race is on to fill the GAP! I do not think China wants to go it alone. To many deals world wide to tackle with out Partners. China not only needs oil for their own used, But more importantly China needs to have some input on the amount of affordable oil flowing to world markets to help keep foreign economies going in order to buy the products they manufacture.

Homeport posted about Shell getting terroized by Nigerian Militants, Long standing trouble with Nigerian locals, Shell's short term Subletting the Sedco to SNP for JDZ
Drilling.

Oily spoke of XOM and CVX talking to SNP. Shell willing to help SNP drill, Petros sniffing around the EEZ. Still to many options to Close the book on this chapter.

JMO
Sneak