Over: Thank You for your input.


Sneak

Tapco: as far as I understand it KNOC wanted all of AXC assets. Sinopec was reported to want all of AXC's African Assets. I posted the Caspian Sea Consortium Development Time line just in case anybody was wondering how long it might take to develope the JDZ. Sorry for the Confussion!


Sneak

Art: If you combined all four blocks (400 bases pionts), Sinopec has the smallest percentage of any of the BIG BOYS only 7% of all four. This could get Interesting! (Bidding War)


Sneak

Over Easy: Do you remember ever seeing a Map of the GOG that showed XOM had plans to own, control and develope the entire GOG?


Sneak

Tapco1: This web link may give you an idea of how much time it takes to develope an offshore field. I do not think AXC top brass wants to wait this long. If the top Brass of AXC can get a very large Premium almost equal to the time lag it takes to develope the field why not sell now!http://www.agipkco.com/wps/wcm/connect/agip+kco/AgipKCO+EN/Home

JMO
Sneak

BB: The following website may give ERHE shareholders some insight as to how a Consortium that was formed to develope the North Caspian Sea's 38 billion barrel oil find and how it might resemble one that could be forming to develope the JDZ. The North Caspian Sea Oil bearing structures are similar to the Oil Bearing Structures within the JDZ. www.agipkco.com

Have a nice day
Sneak

Careful You might get Censored by the Thought Police "Frank Burns".

On a more positive note: China is selling (Trading) dollars for Natural Resources HMMM!


Sneak

MN: Interesting HMMM!


Thank You
Sneak

Does the JDZ-EEZ have Gas Hydrates?


US Gas Hydrates Find Has Worldwide Implications
by Phaedra Friend|Rigzone|Friday, June 12, 2009

In a 21-day expedition led by Chevron, DOE's National Energy Technology Lab (NETL), the US Geological Survey, the Minerals Management Service, in addition to a host of other industry experts, the most prospective gas hydrates reservoirs yet found have been located and drilled.

"Gas hydrates for a long time have been the most elusive and confounding of hydrocarbon deposits to find," said Dan McConnell, vice president of AOA Geophysics, one of the companies selected for the site selection committee. "This is the very first time that thick hydrates accumulations have been drilled by design, that those hydrates were where they were predicted to be."

The Gulf of Mexico Gas Hydrates Joint Industry Program (JIP) was formed by US governmental groups and petroleum companies to investigate the occurrence of gas hydrates and develop technologies for reliable detection and safe drilling.

"The goal of the DOE program is to determine the scale at which gas hydrates exist in potentially recoverable reservoirs in the Gulf," said Ray Boswell, the project leader from NETL. "This expedition is a major success in that effort."

"In the pursuit for gas hydrates, which has been put on by Japan, India, Korea and China, it was thought for a while that the US had lagged in its efforts," said McConnell. "But we have in this one expedition found the most promising hydrates that can actually be produced -- the thickest, most saturated hydrates that have yet been encountered. So, it really is a landmark expedition."

"These sites represent a range of gas hydrate occurrences, including not only the prospective gas hydrate saturated sands," said the USGS' Tim Collett. "In addition to their resource implications, they should serve as excellent research sites to advance our understanding of the nature and evolution of gas hydrate systems."


Helix Q4000 Semisub
Through April and May 2009, Helix's Q4000 semisub drilled seven deepwater wells in Walker Ridge, Green Canyon and Alaminos Canyon in the US Gulf of Mexico. Ranging in water depths of 4,800 to 6,600 feet, four of the wells encountered concentrations of hydrates in porous, permeable sands; two discovered low concentrations of gas hydrates in sands; and one intersected promising sands yet no hydrates.

Locating Gas Hydrates
The 21-day expedition proved that under the US Gulf of Mexico is a new source of energy. Gas hydrate is an icy combination of water and natural gas, which is thought to be found in abundance in both marine environments and the Arctic, but has been historically difficult to find in commercial quantities. Coming in below the budget of $11.2 million, this US expedition has potentially changed the face of the petroleum industry as it exists now.


Gas Hydrate Composition (USGS)
Following a 2005 JIP Leg II program to determine the potential drilling hazards related to gas hydrate in fine-grained sediments, the recent expedition started with determining where to drill. AOA Geophysics was brought into the fold as a part of the site selection committee because of previous published papers outlining how to locate gas hydrates.

"They recognized that we brought a set of skills that was needed in the site selection committee," provided McConnell. "We end up looking at a lot of data, and we are always looking at the interface between gas and gas hydrates as we work for our clients. So when Chevron asked us using their supplied data to prospect for gas hydrates, we had really good ideas of where to look for them and were actually able to guide them toward two of the successful sites."

AOA Geophysics helped to put forth two successful sites, on the Walker Ridge 313 and the Green Canyon 955 locations. In fact, the Walker Ridge site was one that the company had identified in a 2002 paper.


Blocks drilled for gas hydrates in the US GOM
"Prior to this paper, researchers would look for a bottom simulating reflector and were puzzled on why it seemed to be absent in the GOM," explained McConnell, the author of the research.

The programs discovered gas hydrate in saturations ranging from 50 percent to more than 90 percent in high-quality sands.

"And those gas hydrates were in a sand which should have excellent reservoir characteristics," added Adrian Digby, vice president of business development at AOA Geophysics. "So, if you are going to find a producible gas hydrate, we believe this is the sort of places you should look. This is the first step. We believe that we've found the most likely location yet drilled. There's still a lot of work to be done to actually get the gas out commercially, but this is the place to start."

Producible Quantities
There are a number of implications for this marine gas hydrate find, especially since the hydrates were found near existing infrastructure. One way gas hydrates can help the industry, is by powering this infrastructure.

"It can benefit some of the deepwater developments," explained McConnell. "The deepwater developments are far flung, and they actually need energy to run themselves. So one possibility is the gas hydrates can be used to help run platforms. If you have a platform that's 200 miles offshore, you have to supply it with energy to run it."

Additionally, gas hydrates may one day produce through existing infrastructure for domestic needs.

"If you look at the deepwater Gulf of Mexico map, you find more and more pipelines, more and more platforms," McConnell continued. "There will be the infrastructure out there to help gather some of these otherwise stranded hydrocarbons."

Processing the gas hydrates is a difficult challenge because of the thermodynamics involved in melting the energy crystals to bring them to the surface.

"You've got three different ways that you can get it out," said Digby. "You've got to increase the temperature, decrease the pressure or use some sort of solvent which would decrease the temperature of the gas hydrates in the water in which they are locked up."

The pressure and the temperature of the hydrates pose a challenge, but there are teams currently working on developing techniques to produce gas hydrates. In fact, this winter, the DOE and Alaska North Slope operators are planning to conduct gas hydrate production tests in the Arctic. Furthermore, international teams are trying to unlock the gas hydrate mystery, as well.

International Implications
There are a number of countries collaborating in the gas hydrates research. Although the Gulf of Mexico has just pulled out in front, other regions have been earnestly developing ways to locate and process this new frozen resource, including the Asian countries of Japan, India, Korea and China.

Gas hydrates have been produced or tested in Siberia and Alaska. There are major efforts under way to test and produce gas hydrates in Siberia, Japan and India, but the process for finding them was coincidental. An additional focus of the American program included establishing a genuine methodology for locating the resource that can be used worldwide, and that has been accomplished.

"The same technologies, the same methodology to finding gas hydrates is applicable to other basins," concluded McConnell.

Does The JDZ-EEZ Have Gas Hydrates!


US Gas Hydrates Find Has Worldwide Implications
by Phaedra Friend|Rigzone|Friday, June 12, 2009


In a 21-day expedition led by Chevron, DOE's National Energy Technology Lab (NETL), the US Geological Survey, the Minerals Management Service, in addition to a host of other industry experts, the most prospective gas hydrates reservoirs yet found have been located and drilled.

"Gas hydrates for a long time have been the most elusive and confounding of hydrocarbon deposits to find," said Dan McConnell, vice president of AOA Geophysics, one of the companies selected for the site selection committee. "This is the very first time that thick hydrates accumulations have been drilled by design, that those hydrates were where they were predicted to be."

The Gulf of Mexico Gas Hydrates Joint Industry Program (JIP) was formed by US governmental groups and petroleum companies to investigate the occurrence of gas hydrates and develop technologies for reliable detection and safe drilling.

"The goal of the DOE program is to determine the scale at which gas hydrates exist in potentially recoverable reservoirs in the Gulf," said Ray Boswell, the project leader from NETL. "This expedition is a major success in that effort."

"In the pursuit for gas hydrates, which has been put on by Japan, India, Korea and China, it was thought for a while that the US had lagged in its efforts," said McConnell. "But we have in this one expedition found the most promising hydrates that can actually be produced -- the thickest, most saturated hydrates that have yet been encountered. So, it really is a landmark expedition."

"These sites represent a range of gas hydrate occurrences, including not only the prospective gas hydrate saturated sands," said the USGS' Tim Collett. "In addition to their resource implications, they should serve as excellent research sites to advance our understanding of the nature and evolution of gas hydrate systems."


Helix Q4000 Semisub
Through April and May 2009, Helix's Q4000 semisub drilled seven deepwater wells in Walker Ridge, Green Canyon and Alaminos Canyon in the US Gulf of Mexico. Ranging in water depths of 4,800 to 6,600 feet, four of the wells encountered concentrations of hydrates in porous, permeable sands; two discovered low concentrations of gas hydrates in sands; and one intersected promising sands yet no hydrates.

Locating Gas Hydrates
The 21-day expedition proved that under the US Gulf of Mexico is a new source of energy. Gas hydrate is an icy combination of water and natural gas, which is thought to be found in abundance in both marine environments and the Arctic, but has been historically difficult to find in commercial quantities. Coming in below the budget of $11.2 million, this US expedition has potentially changed the face of the petroleum industry as it exists now.


Gas Hydrate Composition (USGS)
Following a 2005 JIP Leg II program to determine the potential drilling hazards related to gas hydrate in fine-grained sediments, the recent expedition started with determining where to drill. AOA Geophysics was brought into the fold as a part of the site selection committee because of previous published papers outlining how to locate gas hydrates.

"They recognized that we brought a set of skills that was needed in the site selection committee," provided McConnell. "We end up looking at a lot of data, and we are always looking at the interface between gas and gas hydrates as we work for our clients. So when Chevron asked us using their supplied data to prospect for gas hydrates, we had really good ideas of where to look for them and were actually able to guide them toward two of the successful sites."

AOA Geophysics helped to put forth two successful sites, on the Walker Ridge 313 and the Green Canyon 955 locations. In fact, the Walker Ridge site was one that the company had identified in a 2002 paper.


Blocks drilled for gas hydrates in the US GOM
"Prior to this paper, researchers would look for a bottom simulating reflector and were puzzled on why it seemed to be absent in the GOM," explained McConnell, the author of the research.

The programs discovered gas hydrate in saturations ranging from 50 percent to more than 90 percent in high-quality sands.

"And those gas hydrates were in a sand which should have excellent reservoir characteristics," added Adrian Digby, vice president of business development at AOA Geophysics. "So, if you are going to find a producible gas hydrate, we believe this is the sort of places you should look. This is the first step. We believe that we've found the most likely location yet drilled. There's still a lot of work to be done to actually get the gas out commercially, but this is the place to start."

Producible Quantities
There are a number of implications for this marine gas hydrate find, especially since the hydrates were found near existing infrastructure. One way gas hydrates can help the industry, is by powering this infrastructure.

"It can benefit some of the deepwater developments," explained McConnell. "The deepwater developments are far flung, and they actually need energy to run themselves. So one possibility is the gas hydrates can be used to help run platforms. If you have a platform that's 200 miles offshore, you have to supply it with energy to run it."

Additionally, gas hydrates may one day produce through existing infrastructure for domestic needs.

"If you look at the deepwater Gulf of Mexico map, you find more and more pipelines, more and more platforms," McConnell continued. "There will be the infrastructure out there to help gather some of these otherwise stranded hydrocarbons."

Processing the gas hydrates is a difficult challenge because of the thermodynamics involved in melting the energy crystals to bring them to the surface.

"You've got three different ways that you can get it out," said Digby. "You've got to increase the temperature, decrease the pressure or use some sort of solvent which would decrease the temperature of the gas hydrates in the water in which they are locked up."

The pressure and the temperature of the hydrates pose a challenge, but there are teams currently working on developing techniques to produce gas hydrates. In fact, this winter, the DOE and Alaska North Slope operators are planning to conduct gas hydrate production tests in the Arctic. Furthermore, international teams are trying to unlock the gas hydrate mystery, as well.

International Implications
There are a number of countries collaborating in the gas hydrates research. Although the Gulf of Mexico has just pulled out in front, other regions have been earnestly developing ways to locate and process this new frozen resource, including the Asian countries of Japan, India, Korea and China.

Gas hydrates have been produced or tested in Siberia and Alaska. There are major efforts under way to test and produce gas hydrates in Siberia, Japan and India, but the process for finding them was coincidental. An additional focus of the American program included establishing a genuine methodology for locating the resource that can be used worldwide, and that has been accomplished.

"The same technologies, the same methodology to finding gas hydrates is applicable to other basins," concluded McConnell.

Oil Heading Higher!


moneynews.newsmax.com
Street Talk RSS ARCHIVE





Pickens: Oil Could Go to $300 a Barrel

Friday, June 19, 2009 10:01 AM

By: Dan Weil Article Font Size



Legendary oil man T. Boone Pickens says that if the U.S. doesn’t take major steps to curb its reliance on foreign oil, the consequences will be drastic.


“Let’s say in 10 years, you do nothing,” Pickens tells Fortune.


“You will be importing 75 percent of your oil (up from 68 percent now), and you’ll be paying $300 a barrel.”





“That’s $2 trillion a year going out of this country.”


The problem today is that we’re importing 13 million barrels of oil a day, Pickens says.


“Over half of that comes from areas that are unstable, unfriendly in a lot of cases — Venezuela, the Middle East, Africa. … If we can cut down on oil from those areas, it would make me feel a lot better about security for this country.”


U.S. consumption is simply too high, Pickens maintains.


“There are 85 million barrels of oil produced every day in the world. We’re using 21 million of the 85 million,” he says.


“At some point, as prices get higher and higher … the countries that have the oil will say … you need to pay a higher price to kill your demand, or we need to cut you off on part of that.”


Other experts agree that oil prices are headed higher.


“In my estimate, oil prices will reach $100 a barrel next year,” economist Nouriel Roubini said at an economics conference cited by Bloomberg.



© 2009 Newsmax. All rights reserved.


Print Page | Forward Page | E-mail Us

This may be old News.

Sinopec to Drill First Well in Nigeria-Sao Tome JDZ
by David Winning|Dow Jones Newswires|Friday, June 19, 2009




Digg It
Stumble it!
Newsvine
Del.icio.us
Technorati
Reddit
Facebook

Nigeria-Sao Tome - JDZ BlockSYDNEY (Dow Jones Newswires), Jun. 19, 2009

China Petrochemical Corp. will drill its first exploration well in the Nigeria-Sao Tome and Principe Joint Development Zone next month after a lengthy delay caused by a shortage of deepwater rigs, two officials familiar with the matter said Friday.

Efforts to speed up exploration in Block 2 come as state-owned Sinopec seeks to clinch a takeover of Addax Petroleum Ltd., one of its partners in the joint development zone, or JDZ.

The TransOcean SEDCO-702 deepwater rig is due to arrive at Block 2 around July 1 and drilling will start immediately afterwards, said an official with the JDZ.

Sinopec secured the production and sharing contract on the block in 2006, but hasn't been able to drill up to now due to a shortage of deepwater rigs, a Sinopec official and the JDZ official said.

They declined to speculate on the Sinopec-operated block's potential reserves, but industry reports point to a pre-drill resource estimate of about 275 million barrels.

China, the world's second largest oil consumer, is keen to find more oil and gas reserves, especially when asset valuations are low due to the sharp decline in oil prices since July last year. Light, sweet crude on the New York Mercantile Exchange is currently trading more than 50% below its peak above $147 a barrel.

Much of its overseas activity has been focused on Africa, with China offering soft loans and aid to governments on the continent in exchange for its state companies having access to resources.

Sinopec executives traveled to London this week to meet with Addax Petroleum to discuss a potential takeover bid, two people familiar with the matter said.

London and Toronto-listed Addax Petroleum has a 14.33% working interest in Block 2, along with stakes in three other blocks in the JDZ.

It is the operator of Block 4 via a 45.5% stake and also holds interests of 40% and 15% in Block 1 and Block 3, respectively, according to the company's 2008 annual report.

Sinopec Group is the parent of Hong Kong-listed China Petroleum & Chemical Corp. It has been aggressively pursuing oil assets overseas to reduce its reliance on refining for revenues and profits.

Sinopec is particularly interested in assets in South America and Africa, company chairman Su Shulin said in May.

Equity oil and gas output from overseas fields, mostly located in Russia, Angola, Syria, Australia and Kazakhstan, totaled 9 million metric tons last year, up from 6.87 million tons in 2007, Su said in March.

BB: It looks like India is starting to Bid for AXC as well. This is starting to shape up nicely. Could China, India, South Korea, BP, Shell, XOM, Petrobras and others be left Jockeying for position in the New Consortium? ERHE's 15% of the New Consortium could be a real Moonshot by X-Mas. STP may also have finalized the EEZ blocks by then and with all the Pre-salt Talk, The second half of the year should be full of Excitement!


Thank You for Your Imput
Have a Nice Weekend
Sneak

BB: So ERHE'S JDZ rights will go into the New Consortium, Which is for dicussion purposes only I will call a Class "A" stock and EEZ is a Class "B" stock for the possible latter admission into this Consortium.


JMO
Sneak

BB: Yes, I believe the New Consortium's Value will be based on the NSAI report. What happens to the EEZ? Do current ERHE shareholders get Stock options for the EEZ rights in the New Consortium? or is it to early to tell.


Sneak

BB: Do you have any Thoughts as to when this Deal Takes Place and I Know, I Know before drilling! Just Looking for a more Concrete Date.


Sneak

BB: Pioneer Claimed that they found Oil, But the find was Non-Commercial! and sold out! Sound familiar! Hummmm.


Sneak

BB: The $3.15 a share cash would indicate about 370 million barrels of oiland gas condensate for ERHE in blocks 2,3 & 4. This would be close to the NSAI numbers. What percentage does Oily or you figure ERHE shareholders might have in the New Consortium? Please note that China is bidding $4 billion dollars for 370 million barrels of oil in the Jubilee field for Kosmos. If one uses the Kosmos purchase price, ERHE shareholders would get $10.80 a share. Looking forward to your response.

Thank You
Sneak

Like in the scene form Austin Powers "It's All Good Bazzil"!


Sneak

I was expecting more dots from BB as well.



Sneak

Yankemike: China has up the Kosmos Energy Bid for 30.875% of the Jubilee Field to $4 billion Dollars or $10.80 a Barrel for about 370 Milliom Barrels. What would they pay for 1 Billion Barrels? "Drill Baby Drill" It all sounds good but will have to wait for drilling results!

Have a nice day
Sneak

Let the Bidding Begin!

Last Updated- Jun 19, 2009 6:29 - - 0 Comments


Shell also eyes Kosmos Energy’s Jubilee fields stake
World oil giant, Royal Dutch Shell is also eyeing the stakes of Kosmos Energy in Ghana’s Jubilee oil fields, the World Street Journal has reported.

Quoting people familiar with the matter, the report said Shell is the latest major oil industry player showing interest in the stake.

“They are looking at the data” on Kosmos’s stakes in the Jubilee fields, but it’s unclear if they will bid, one person said, according to the report.

It said Chevron Corp., ExxonMobil Corp., Italy’s Eni SpA, India’s Oil & Natural Gas Corp., and Cnooc Ltd. have also expressed interest in the Ghana assets.

Meanwhile, information from the international oil industry reaching ghanabusinessnews.com indicates that the China National Offshore Oil Company (CNOOC) is seeking to bid about $4 billion for a 30% stake in the Jubilee fields.

The Jubilee oil fields have a possible oil reserve of 1.2 billion barrels at most and commercial oil production is expected to start in June of 2010.

Texas based Kosmos Energy’s other partners with stakes in the Jubilee fields are Tullow Oil and Anadarko . The Jubilee oil fields have 17 wells and it is said to be the largest to be discovered in West Africa in the last 10 to 15 years.

Meanwhile, when news broke in February 2009 that Kosmos Energy had appointed advisers to handle the sale of its stake in the Jubilee fields, officials of the company denied the reports claiming it was false.

Mr Andy Mormon, Asset Manager of the Texas based oil and gas exploration company told the media, “we are not for sale, categorically we have not hired an agent, we have not opened the data room, we are not for sale.”

Officials of Kosmos Energy have not commented on this latest development.

By Emmanuel K. Dogbevi

Email This Post | Print This Story


--------------------------------------------------------------------------------

Comments
Got something

Some Info on Kosmos Jubilee Feild. Kosmos has a 30.875% of Jubilee.

Kosmos Energy’s Mahogany-2 Appraisal Well Confirms Jubilee Field Discovery Offshore Ghana
Source: www.gulfoilandgas.com 5/5/2008, Location: Africa
Oil Field Services

Kosmos Energy announced that the company’s Mahogany-2 well drilled offshore the Republic of Ghana on the Kosmos-operated West Cape Three Points Block has encountered a substantial light oil column based on the results of drilling, wireline logs and reservoir fluid samples. The Mahogany-2 well encountered a gross hydrocarbon-bearing interval of 193 meters (663 feet) with net hydrocarbon-bearing pay of 50 meters (164 feet) of high-quality stacked reservoir sandstones. Kosmos plans to complete the well and execute a drillstem test shortly.

Results obtained thus far indicate that the Mahogany-2 well is in communication with the Mahogany-1 discovery well on the West Cape Three Points Block that Kosmos announced in June 2007 and the company’s Hyedua-1 confirmation well on the Deepwater Tano Block announced in August 2007. These successful wells validate that Jubilee is a significant oil field. The Mahogany-2 well, the field’s second appraisal well, confirms a major field extension.

The well was drilled approximately 6.1 kilometers (3.8 miles) northeast of the Mahogany-1 well and 11.3 kilometers (7 miles) northeast of the Hydeua-1 well. The Mahogany-2 well was drilled in water depths of 1,080 meters (3,543 feet) by the “Songa Saturn” drillship and reached a total depth of 3,443 meters (11,296 feet). “The results of 3D seismic and drilling to date establish a large productive area with a total vertical hydrocarbon column of approximately 600 meters (1,968 feet),” said Brian F. Maxted, Kosmos Chief Operating Officer. “Moreover, other potential field extensions, as well as up to 400 meters (more than 1,300 feet) of structural closure updip of the Mahogany-2 well, have yet to be delineated. The exploration and appraisal drilling undertaken to date demonstrates the upside potential of the Jubilee Field and has further de-risked adjacent prospectivity.”

“The success of the Mahogany-2 appraisal well is certainly great news for the people of Ghana. The well confirms Jubilee as a giant field, the largest discovery in deepwater West Africa since the inception of Kosmos in 2003, one of the biggest finds ever made here and potentially the largest single field discovery in this region,” said James C. Musselman, Kosmos Chairman and Chief Executive Officer.

During the remainder of 2008 and early 2009, Kosmos and its field partners plan additional appraisal drilling of the Jubilee Field (formerly known as the Mahogany Field). Development sanction of the Jubilee Field project is expected this year, followed by first oil production commencing as early as late 2009 to early 2010. Kosmos also plans to delineate the company’s nearby Odum Field, discovered in early 2008. The company will conduct a high-resolution 3D seismic survey over the southeastern portion of the West Cape Three Points Block covering the Odum discovery and the adjacent area this summer. In addition, Kosmos expects to drill additional high-impact exploration prospects on its offshore Ghanaian acreage during the second half of 2008 and in 2009.

Kosmos Energy is operator of the West Cape Three Points Block in which the company holds a 30.875% interest. Anadarko WCTP Company, an affiliate of Anadarko Petroleum Corporation, has a 30.875% interest; Tullow Ghana Limited, an affiliate of Tullow Oil plc, has a 22.896% interest; the E.O. Group has a 3.5% interest; and Sabre Oil and Gas Limited has a 1.854% interest in the block. Ghana National Petroleum Corporation (GNPC), which has a 10% participating interest in the project, will be carried through the exploration and development phases.

The West Cape Three Points Block comprises 1,761 square kilometers (435,200 acres) in water depths ranging from 50 meters to 1,800 meters. The Jubilee Field discovery well, Mahogany-1, is located 63 kilometers from the Ghanaian coastline and 132 kilometers southwest of the port city of Takoradi and is situated in the Tano Basin.

Let the Bidding Begin!

JUNE 18, 2009, 12:38 P.M. ET Shell Looks Into Kosmos' Ghana Oil Field Stakes-Sources
Article Comments more in Business »
By Benoit Faucon

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--Royal Dutch Shell PLC (RDSB.LN) is looking at stakes put up for sale by Kosmos Energy LLC in a large Ghanaian oil field, the latest major showing interest in West Africa's new oil ...

Yankemike: ERHE'S market cap is $447,640,000 / $6.00 a barrel for proven reserves = 74.6 million barrels of oil in blocks 2,3 & 4. So if ERHE'S real cut in blocks 2,3 & 4 is 1 billion barrels we can see a rises in the PPS of 13.4 times todays price.



Sneak

Bob: Is lone clone really Frank Burns from MASH!


Just having a little Fun
Sneak

Oh Hail to the Enlightened One. Master of trickory, King of deception. Today as we ponder BO'S next move, Let us move away from this distraction and give us this day are daily riddle on "The Deal is Done" Maybe a cartoon, picture or animated slide show!

Have a nice day
Sneak

That is the Million Dollar Question. With Euro-Asia Countries like Russia, China, India, and the likes (Chavez and Brazil) trying to set up a Second or Competitive Reserve World Currency for inter Euro-Asia-South American trade and thus trying to enhance the Gobal Collapse of Western Capitalism by devaluing the Dollar. All at the same time the IFM will start to issue a basket of Currencies (western economies) call the SDR (special drawing rights)in order slow or prevent a massive devaluation attack on the dollar by making it harder for a second reserve currency from setting up lucrative side deals (lower interest rates, better exchange rates, natural resources and looking the other way on human rights issues)with the trading partners of western countries and thus slowly picking us off one at a time.


JMO
Sneak

Moonshot:

That combo would be a dominate player in the GOG. AXC combined share would be about 44% of the JDZ OIL in blocks 1-4, China's 28.65% only represents about 7% of the oil in blocks 1-4. If you add in All of the Small Nigerian Companies that have a stake in the JDZ and SEO bring them to the table, AXC will Control 58% of the oil in blocks 1-4. Also one must not forget about the other JDZ blocks that ERHE has rights to. (This is so important) As the other blocks are slowly brought on line by auction. The additional percentage rights will guarantee their dominate position the the JDZ for years to come as the Local content rule shall apply even if ERHE does not, That rule giving future Nigerian locals a minority share and thus will prevent the eroding of AXC dominate role should one of the Big Oil Companies try to dilute the AXC percentage in any or all of the remaining blocks by buying out the full balance of percentages of rights left in the other block(s)in order to gain Control of this New Consortium. The only solution will be for the BIG OIL TITAN'S of the world to Buy out the Consortium.

I say it will be XOM.

Have a nice day
Sneak

Bob: That's OK! I'm sorry to here about lay-offs. I hope you make the Cut (Staying Employed). Soon we maybe able to start Chanting "Drill Baby Drill" for the JDZ!


Wishing the Best for the U.S. Oil Business!
Sneak

Bob: Take it easy! The Greed is not the U.S. Oil Companies, But the Politicians that put the brakes on this Company in order to Jockey for Power and Position when it comes down to closing this deal!

As Ricklan may have stated "What should have taken 2 to 3 years may soon come to fruition"!

Thank God!
Sneak

Dreamtrader: NO SIR! We got raided for the sole purpose of Political Expediency by the Powers that Dominate the U.S. Oil Industry! One can only conclude that a lot more Oil exists in the JDZ than anyone wants to admit to. Just Unbridled GREED!


Sneak

BB: If the first 4 blocks are combined? ERHE would have 12.8% as the blocks are now. If you combine all 9 blocks ERHE would have 11.22%. It starting to sound like China buys AXC assets giving them 35% of blocks 1-4. What happens to CVX ( stated non commercial), ANC, ERHE and others in the blocks is a Big Unknown. If AXC JDZ assets are worth $5.5 billion of the $8 billion dollars price tag. Then ERHE JDZ assets in blocks 1-4 could be worth $2.4 billion or $3.32 a share.


Have a nice Day
Sneak

RUBY-MARK: I out looking for a 10 Gallon JR EWING HAT!
have fun playing cards!

Cheers
Sneak

TRY: The downside of the U.S. Dollars will be limited to the value of the SDR'S in the basket of currencies the IMF will be using to settle those trades by using the SDR'S. The U.S. Dollar is part of the SDR'S. The IMF calculates the U.S. Dollars to be worth .63 cents in the SDR'S. SDR's are Special Drawing Rights.


Sneak

JSC: In 2010 About 8 to 10 Arab countries will form a economic union much like the EU and will have a common currency by which all of their oil will be sold in and traded against a basket of currencies by which they will be a part of called "SDR'S" or Special Drawing Rights. The SDR'S will be controlled and handled by the IFM. China, Russia and members of the G-20 have started buying IMF bonds and are not buying U.S. Treasury bonds. That has caused the run up in U.S. treasury yields.


JMO
Sneak

Tapco-1:

I used $6.00 a barrel for proven reserves in order to come up with the 3.15 billion barrels of oil and gas condesate in blocks 1-4. ($18.9 billion / $6.00 a barrel) Having said that. As oil rises in price the upside in the share price of the New Company maybe lessened.

Note: Oil priced at $54.00 a barrel - $10.00 production cost = $44.00 / 2 = $22.00 for the New Company less $10.00 a barrel overhead and handling cost, That would leave $12.00 of true profit oil for the New Company. Since Wallstreet only uses about 50% of the true profit oil for the value of proven reserves that would leave $6.00 for valuation. So if the deal takes place before the run up in Oil prices, The upside of the New Company shares would benefit, But if the price of oil Sky Rockets before the deal, The New company shareholders could suffer the Downside risk in Valuation due to a collapse in Oil Prices.

Remember One wants to Sell Shares in a New Company when oil prices are low so that the sharesholders investment will go up in value over time in order to attract the New Capital Needed for the JDZ Development. Hence No M&A Activity took place in the Oil Industry when Oil was @ $150.00 a barrel!

JMO
Sneak

Exceo: Good Morning, It appears to me that all of the JDZ participants may put their % of blocks 1,2,3 & 4 into a New XZY Company to share the production cost and revenue stream that is to follow for the JDZ. This New Company may list on the major stock exchanges and sell shares to fund the JDZ development? Sinopec's $8 billion asset grab for West African energy assets may brake down as follows: Sinopec has only 7% points of the 400% points that make up blocks 1-4 of the JDZ. So $5.5 billion cash of the $8 billion dollars may equal AXC share (116% points)of the JDZ rights or 29%. So Blocks 1-4 maybe valued at $18.9 billion dollars. ERHE'S combined 12.8% of the 400% points would equal $2.4 billion or $3.36 a share. The $18.9 billion dollar price tag would equal about 3.15 billion barrels of oil and gas condensate in blocks 1-4.

JMO
Sneak

Saleen: 2.27 billion for All of the JDZ rights and All of the EEZ rights. Lets see @ $6.00 a barrel that equals 378 plus million barrels in all. Do not forget about Pre-Salt possibilities.

Have a nice day
Sneak

Rambus: Nice to see the article. I have to believe that other very large oil majors are looking at the african assets as well. Let the bidding begin!

Thank You
Sneak