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If I invested a total of $40,000 in ERHE shares at a cost ranging from $.08 to $.40, all of which are now long term, disregarding AMT, and I sell them all on June 22, 2006 and put all the proceeds, after tax, into a 20 yr guaranteed annuity, how much will my monthly benefit be, with and without a survivor provision???
Addition: and I almost forgot, will my next grandchild be a boy or a girl?
This is all startin' to make my willy wiggle:
Posted by: Spec29
In reply to: None
Date:3/24/2006 2:41:52 PM
Post # of 36244
WOW, just plain F'n wow...
Just remember this post below by lsm39_2000. The guy may have just hit the nail on the head.
It is very much suspected to be one of the largest finds in history. They think the reserve may be up to 100 miles long to go along with the rumored over 800 feet of net pay zone. They have also stopped all talks of buyin/buyout until CVX comes out with their discovery.
Also, check out the major fault line that goes through blocks 2, 3, 4, 5 and into OPL 258 on the PGS site linked. I went on the Afren website where they have a legend for distance on their map and estimated the major fault line to be a little less than 100 miles long.
This is all unsubstantiated rumor until CVX makes it's announcement on the discovery but you can bet there will be no buyin/buyout talk until after that announcement.
Posted by: umbra
In reply to: Tapco1 who wrote msg# 36228
Date:3/24/2006 4:11:18 PM
Post # of 36244
By Easter you will all be wealthy...very, very wealthy.
Ice, keep in mind that 10 Billion barrels of oil is only a 128 world supply at todays consumption rate of 78 Million per day, so even tho such a find would be huge for us, it ain't gonna change the world for everybody else.
Magic
Not that it matters, since their trading within their own company is totally irrelevant, but that just doesn't cut it dude. Chapter and verse are required. Quote the document and provide a direct link to the quote. That is the way it is done if you want your "facts" to be accepted.
Magic
"Does the PSC require that the subsidiary sell oil to Addax's parent company at greatly discounted rates, like Addax's other Nigerian operations?"
Provide proof of your premise.
Magic
Whole lotta shakin goin on!!!!
Hang tight folks, next run starts in 30 minutes.
Magic
Congrats Spec, et al!!!!!!!!!!!!!
SEC rules!!!!!!!!!!!
Anybody but Fvckin DOOOOOOOOOOOOOOOOOK!!!!!!!
From a KY Wildcat!!
Magic
I do remember that quite vividly. In fact, I may have it tatooed on me somewhere.
Magic
and how did you learn about this stock? Anyone here find it on their own, without a tip from someone?
Magic
Given today's theme, this is worth a look:
http://www.jj1.com/Fun/SydneyPic/JJ1SydneyFlash.zip
just move cursor over, after downloading. I promise it is safe.
Magic
Didn't show on mine:
Rec. Time Action Price Volume
12:35:20 PM Bid 0.731 2500
12:33:16 PM Trade 0.735 10000
12:25:38 PM Trade 0.735 2000
12:20:40 PM Bid 0.73 2500
12:20:36 PM Ask 0.735 2500
12:20:32 PM Trade 0.73 5000
12:20:30 PM Trade 0.73 2500
12:20:22 PM Bid 0.727 2500
12:20:18 PM Ask 0.73 2500
12:19:58 PM Trade 0.729 2500
12:19:36 PM Trade 0.729 25000
Why would Citi have that 35K wall posted at .36 ??? Appears to be an obvious attempt to put a ceiling on the price. They have been doing that for a week now. Any insights????
Magic
trader, uh, ya forgettin about $45.9MM little "current assets"?
I'm with ya cautious, anything would be better than OTC, getting our lunch eaten by the dogs everyday.
Magic
Thanks Meridian. Kinda short and sweet.
Any more news from your perspective??
Magic
RUBY, help me out here:
http://www.upstreamonline.com/live/africa/
Thanks, Magic
Upstream has finally got it:
ERHC goes for three in JDZ
17 March 2006 21:01 GMT
Houston-based ERHC Energy confirmed that it has entered into three separate production sharing contracts with various operators in the Joint Development Zone between Sao Tome and Principe and Nigeria (JDZ).
Ahhh, got it now, Thanks Meridian.
developer, never mind my last post.
Never learn if ya don't ask questions.
Magic
developer, your experienced input is apprectiated. Please clarify:
"Tax mitigation dictates the rest. Each party owns an undivided working interest under the agreements. "
I am assuming that this refers to ownership in the subusidiary. How is that structured if not a limited partnership?
Thanks for your help, from an oil-business ignorant businessman.
Magic
ralph, my understanding is that the companies contract with each other to create the Joint Operating Agreement, in which they create a joint subsidiary according to the percentages they received. The joint subsidiary (JDZ Block 2 Group, LP) then executes the Production Sharing Contract with the JDA.
The various stakeholders own a partnership interest pursuant to their awarded percentages, etc.
Anyone feel free to clarify/correct.
Magic
Balance - just a note to say a big THANK YOU.
For those of you who don't know, Balance gave me and a few others the heads up on this about 3 years ago, actually a bit longer, cause I started buying in Feb 03.
Hope you didn't have to ease a few for tuition. You do know that if this goes over $2, it is marginable, so you can take out a little cash without giving up your shares.
Oh, and turkey season opens here in a month. Had one gobblin here a week ago. Hope with the early spring, the season isn't set too late.
Magic
Thanks Meridian, I think I've got the picture now, much appreciated.
Magic
So the 0% to 5% royalty is recoverable in cost oil?
Thanks for your reply. Just trying to make sure I have the general picture in focus.
Magic
If I understand this, from day one of commercial production, the stakeholders who paid for development/production get 80% to recover costs, the JDA gets 50% tax on the remaining 20%, plus a royalty of up to 5% depending on the volume of production, and the stakeholders devide the remaining 5 to 10% of "profit oil" pro rata.
Correction appreciated, and thank you Sir.
Magic
Blynboy, you are mistaken. ERHE DOES control 1/3 of the consortium rights. The consortia control one-half of the total rights. ERHE's one third of the consortia's rights equals one sixth of the TOTAL rights.
Magic
Item 1.01 Entry into a Material Definitive Agreement.
On November 17, 2005, ERHC Energy Inc. ("Company") entered into a
participation agreement with Addax Petroleum (Nigeria Offshore 2) Limited
("Addax") as subsequently amended whereby the Company agreed to assign to Addax
a 33.3% participating interest in Block 4 of the Joint Development Zone between
Sao Tome & Principe and Nigeria ("JDZ"), leaving a 17.7% participating interest
in Block 4 to the Company. In exchange, Addax has paid the Company $1.35
million, and will pay an additional $16.65 million ten days after the execution
of a production sharing contract for Block 4. ERHC agreed to support Addax as
operator, and Addax agreed to pay all of the Company's future costs in respect
of all petroleum operations in Block 4. Addax is entitled to the Company's share
of cost oil until Addax recovers the Company's costs.
On February 16, 2006, the Company entered into a participation agreement
with Addax Petroleum Resources Nigeria Limited ("Addax Sub") whereby the Company
agreed to assign to Addax Sub a 15% participating interest in Block 3 of the
JDZ, leaving a 10% participating interest in Block 3 to the Company. In
exchange, Addax Sub has paid the Company $500,000 and will pay the Company an
additional $7 million ten days after the execution of a production sharing
contract for Block 3. Under this agreement, Addax Sub agreed to pay all of the
Company's future costs in respect of petroleum operations in Block 3. Addax Sub
is entitled to the Company's share of cost oil until Addax Sub recovers the
Company's costs.
On March 2, 2006, the Company entered into a participation agreement with
Sinopec International Petroleum Exploration and Production Corporation Nigeria
("Sinopec"), and Addax Energy Nigeria Limited ("Addax Ltd."), whereby the
Company agreed to assign a 28.67% participating interest in Block 2 of the JDZ
to Sinopec, and a 14.33% participating interest in Block 2 of the JDZ to Addax
Ltd., leaving a 22% participating interest in Block 2 to the Company. In
exchange, Sinopec agreed to pay the Company $13.6 million ten days after
execution of a production sharing contract for Block 2, and Addax Ltd. agreed to
pay the Company $6.8 million ten days after execution of a production sharing
contract for Block 2. Under this agreement, ERHC agreed to support Sinopec as
operator, and Sinopec and Addax Ltd. agreed to pay all of the Company's future
costs in respect of petroleum operations in Block 2. Sinopec and Addax Ltd. is
entitled to the Company's share of cost oil until they recover the Company's
costs.
On March 14, 2006, a subsidiary of the Company, Addax, and several other
oil and gas companies (collectively, the "Contractor") entered into an exclusive
production sharing contract with the Nigeria-Sao Tome and Principe Joint
Development Authority ("JDA") to conduct petroleum operations in Block 4 of the
JDZ, where Addax serves as operator. The term of the production sharing contract
with the JDA is twenty eight years consisting of a three-phase exploration
period and a development and production period. The contract requires minimum
work commitments to be performed during the eight year exploration period.
During the first four years, or Phase I, the Contractor is required to drill at
least two wells, with an option for a third well depending on the results of the
first two wells, to a minimum total depth of 3,500 meters subsea, process
existing 3D and 2D seismic date, conduct AVO attribute analysis, acquire
additional geochemical, structural restorations and/or sequence stratigraphic
analysis and perform geological and geophysical studies. During the next two
years, or Phase II, the Contractor is required to drill another well and acquire
additional seismic data. During the last two years, or Phase III, the Contractor
is required to drill another well. The Contractor is required to spend at least
$53 million in Phase I, $16 million in Phase II, and $16 million in Phase III.
If these minimum financial commitments are not met, the Contractor is required
to pay the JDA the difference between the commitment for the then current Phase
and the amount actually expended in petroleum operations for such Phase as
liquidated damages. The Contractor may, however, terminate this contract at the
end of any Phase provided it has fulfilled its obligations relative to that
Phase. The Contractor is required to post a performance bond in an amount equal
to its minimum financial commitment for each Phase, to insure its property and
to obtain liability insurance. The Contractor has a right to produce all
commercially viable hydrocarbons discovered and may be granted a series of
twenty year extension periods until the hydrocarbons are economically depleted.
8-K 3rd Page of 4 TOC 1st Previous Next Bottom Just 3rd
The Contractor is required to make several expenditures to the JDA,
including a $90 million signature bonus. Addax is required to pay on behalf of
the Company its proportionate share of the various guaranties and expenditures
pursuant to the participation agreement executed November 17, 2005, as amended.
The JDA may terminate the production sharing contract if the Contractor fails to
pay any of the expenditures or the minimum financial commitments, among other
events. The contract shall expire if no petroleum is found in Block 4 at the end
of the exploration period.
On March 14, 2006, a subsidiary of the Company, Addax Sub, and several
other parties entered into a production sharing contract with the JDA to conduct
petroleum operations in Block 3 of the of the JDZ, the terms of which are
substantially similar to the production contract in Block 4, except that the
drilling commitment is only one well and the signature bonus is $40 Million.
On March 15, 2006, a subsidiary of the Company, Sinopec, Addax Ltd, and
several other parties entered into a production sharing contract with the JDA to
conduct petroleum operations in Block 2 of the of the JDZ, the terms of which
are substantially similar to the production contract in Block 4, except that the
drilling commitment is only one well and the signature bonus is $71 Million.
8-K Last Page of 4 TOC 1st Previous Next Bottom Just 4th
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ERHC Energy Inc.
By: /s/ Walter F. Brandhuber
-------------------------
Walter F. Brandhuber, President
SS, if you really feel the need to do something, start compiling email addresses for newspaper and magazine reporters and editors, speculative fund managers, and oil execs. When the 8K and Official PR come out, fire at will.
I would be doing that if I had the time.
Magic
Should you decide to go forward with that spam, please at least use the ERHE symbol, rather than ERHC.
Magic
One third of the consortium interest, accross the board.
Still no mention of Blk 2 signing on upstream.
Somehow this seems appropriate today:
A farmer is sitting in the neighborhood bar getting soused. A man comes in and asks the
farmer, "Hey, why are you sitting here on this beautiful day getting drunk?"
Farmer: Some things you just can't explain.
Man: So what happened that's so horrible?
Farmer: Well, today I was sitting by my cow milking her. Just as I got the bucket about
full, she took her left leg and kicked over the bucket.
Man: Ok, but that's not so bad.
Farmer: Some things you just can't explain.
Man: So what happened then?
Farmer: I took her left leg and tied it to the post on the left.
Man: and then?
Farmer: Well, I sat back down and continued to milk her. Just as I got the bucket about
full, she took her right leg and kicked over the bucket.
Man: Again?
Farmer: Some things you just can't explain.
Man: So, what did you do then?
Farmer: I took her right leg this time and tied it to the post on the right.
Man: and then?
Farmer: Well, I sat back down and began milking her again. Just as got the bucket about
full, the stupid cow knocked over the bucket with her tail.
Man: Hmmm...
Farmer: Some things you just can't explain.
Man: So, what did you do?
Farmer: Well, I didn't have any more rope, so I took off my belt and tied her tail to the
rafter. In that moment, my pants fell down and my wife walked in.....
Here's a summary of some of the newest well logging services provided by Schlumberger. Interesting, and informative as to how one may go about estimating a field from a single well.
http://www.slb.com/content/services/evaluation/scanner/index.asp?entry=scanfamups
Magic
Just Reuter's so far that I know of.
Mark, have you heard from B Morgan? Blk 2 signing still not on Upstream.
Magic
We gotta get past this tenth of a cent at a time bullchit!
Magic
new 2 yr high
I believe the original MOU said full carry to commercial production, which, imo, would include the development costs.
BTWTFDIK
Magic
James T. Hackett, Pres, CEO & Chmn of Anadarko.
Meridian did say, over the weekend, that he may not post this evening as he may be imbibing a bit heavily.
I'd say he certainly is entitled!
Magic
Nice that it is the lead story for now too!! Wonder who's picture that is?????????
http://www.upstreamonline.com/