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I guess we know from this comment which camp you are in, and why you post what you do:
A lot of cross-pollination going on between Eland and Chrome:
Recall that ERHC's neighbor next door in Block 11B, Adamantine Energy, attracted the interest of Bowleven as a farm-in partner (for a $10 million investment in the block).
Here's a map from Adamantine's site that shows the geological setting of it's block as well as ERHC's. Notice how the Lotikipi Basin, to the west of Block 11B (outlined in red) and in ERHC's Block 11A, is depicted as backed up against a fault line:
Adamantine has this to say about the geology of the area:
Those who doubt SEO/Chrome's intentions as to the rights offer need to reread the statement released by Chrome prior to the offering.
These posts are most helpful in that regard:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84060095
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84061483
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83902442
Think about this: If it were SEO/Chrome's intention NOT to participate, they would have more to gain by remaining silent regarding the rights offer. That would surely provide more fodder for F.U.D. (fear, uncertainty, doubt) than expressing support.
If SEO really wanted to manipulate the market, he could have had Chrome issue a terse statement stating it would not be participating in the rights offer. Imagine what that would have done to the stock price.
Regarding the extension to the end of February, I didn't receive my rights offer materials from my broker until mid-January. And there were no clear instructions on how to indicate participation. Of course, I already knew about the rights offer, and thanks to this board, knew the exact steps to take with my particular brokerage house. So given these details, I can easily see the wisdom in extending the offer period.
I not only subscribed my full allotment of shares, but also oversubscribed. ERHC has made some great strides in the last year, and they have positioned themselves for great potential.
Just looking at ERHC's Block 11A and how it is situated at the intersection between oil fields in Sudan, Ethiopia, and Kenya makes me very optimistic. - Longtimer
Excellent reasoning, Strategyone. Logic prevails!
For sure, that's what we need!
Pipeline, rail, and highway to go right through ERHC's Block 11A
So it seems planning for the Sudan-Kenya pipeline, part of LAPSSET, is well along. This certainly will add value to ERHC's block.
Here's a presentation from the Kenyan Ministry of Transport, dated October 8, 2011: LAPSSET
Regarding the rights offering prospectus, not much new to me except the mention of the IRS's examination of ERHC's tax returns for 2006, on page 19, paragraph 2.
Maybe this has been revealed before, and I missed it. Seems the U.S. Government just can't leave ERHC alone. - LT
Had over a month's worth of posts to wade through to catch up; was away on business and busy life. Anticipating very good response to ERHC's rights offering. I am fully participating.
Read the rights offering prospectus, and have one comment, which will be the subject of my next post. - LT
Example Frontier GORE Surveys Conducted
LIBYA
Survey Area: 4,900 km2
# Modules: 2207
Typical Interval: 1,5 km on regular grid
Terrain: flat to undulating sand desert with rock outcrops
Logistics: four crews operating nearby remote town
ALGERIA
Survey Area: 1,800 km2
# Modules: 900
Typical Interval: 1,5 km on seismic lines
Terrain: giant sand dunes, flat gravel desert, wadis, fez-fez
Logistics: two crews plus two military crews operating from desert camp
YEMEN
Survey Area: 6,000 km2
# Modules: 2,200
Typical Interval: 1 - 2 km
Terrain: sand desert; dunes, wadis & hard-pan
Logistics: multiple crews based at a moving base camp
POLAND
Survey Area: 8,000 km2
# Modules: 3600
Typical Interval: 1,5 km regular grid
Terrain: flat agricultural land and forest
Logistics: six crews operating out of two bases, survey split in two parts
YEMEN
Survey Area: 1,800 km2
# Modules: 1,300
Typical Interval: 1 km
Terrain: hard-pan and rugged wadis
Logistics: multiple crews based at static base camp
CANADA, N W Territories
Survey Area: 250 km2
# Modules: 300
Typical Interval: 500m - 1,500 m
Terrain: Arctic tundra, winter permafrost
Logistics: 2 crews on snowmobiles & sleds
CANADA, N W Territories
Survey Area: 175 km2
# Modules: 200
Typical Interval: 400-1,000 m
Terrain: Arctic tundra, winter permafrost
Logistics: 2 crews on snowmobiles & sleds
CANADA, N W Territories
Survey Area: 400 km2
# Modules: 230
Typical Interval: 1.5 -2.0 km
Terrain: Arctic tundra, summer
Logistics: helicopter support
ROMANIA
Survey Area: 1,000 km2
# Modules: 450
Typical Interval: 1.5 km irregular grid
Terrain: forest in steep mountain terrain
Logistics: 4WD cars and hiking
ROMANIA
Survey Area: 500 km2
# Modules: 450
Typical Interval: 1 - 1.5 km regular grid
Terrain: flat agricultural terrain and forest
Logistics: two teams in 4WD cars
EGYPT, Upper Egypt
Survey Area: 2,400 km2
# Modules: 330
Typical Interval: 1.5 km along 300 km of seismic
Terrain: wadis and flat desert with sabkhas
Logistics: Hummers and desert camp
TANZANIA
Survey Area: 1,600 km2
# Modules: 250
Typical Interval: 1.5 km along seismic
Terrain: jungle bush, African steppe
Logistics: 4WD cars guarded by huntsmen
http://www.gore.com/en_xx/products/geochemical/petroleum/surveys_frontier_experience.html
Bet you Dr. Thuo could enlist some university geology student interns to help do this survey for ERHC. - LT
More on GORE Module/Survey
http://www.gore.com/en_xx/products/geochemical/petroleum/surveys_petroleum_fieldwork.html
GORE SURVEY EXAMPLES
Algeria, Berkine Basin
Structural trap: Delineating oil reservoirs
Arctic North America
Permafrost – Arctic North America
Bolivia, Sub-Andean Thrust Belt
Structural highs: Detecting potential charge
Custer/Roger Mills Counties, Oklahoma, USA
Thirty wells drilled in conjunction with the information provided by the GORE® Survey. Client’s net sand thickness isopach based on wells drilled post-survey closely matches the GORE® Survey result.
Development - Lithuania
The survey area is located in the Baltic Syneclise petroleum province, Lithuania. Target was an on-shore marine Cambrian sandstone. Producing horizon is about 2,000 m deep. Reservoir traps are a result of Caledonian tectonism. Goal of the survey was to determine the field limits and identify reservoir sweet spots.
Dry Gas Exploration - Romania
ROMGAZ, the national gas company of Romania, and W. L. Gore & Associates, Inc. conducted a GORE® Survey on two exploration prospects in Romania. The primary goal was to reduce exploration risk and increase chances of finding natural gas. The natural gas in these prospects was known to be "dry", greater than 99% methane by volume, and provided a unique challenge for the survey.
Egypt, Onshore
GORE® Survey was able to detect hydrocarbon microseepage through thick salt sequences. The next well drilled on GORE® Survey data (FH85-8) produced 800 bopd; the highest production rate in the region.
Frontier - Chile
No geological information was available at the time of the survey. The potential for encountering hydrocarbon-bearing zones was unknown. The main objective of the survey was to locate and evaluate the potential of finding hydrocarbons indicative of deeper fossil fuel deposits, and therefore, focus further exploration efforts.
Frontier Experience
This document contains a comprehensive list of Gore's frontier project experience including survey area, terrain, and project logistic information.
Multi-Layer Gas Exploration – Texas
A surface geochemical survey was conducted on a natural gas exploration prospect in Texas, USA. The exploration target was a structure, defined by seismic data and located at depths of 3,300 meters, thought to contain Wilcox gas. Producing oil and gas wells exist in the area along a major upthrown growth fault. Overlying the target structure were shallow oil and gas producing zones.
Northern Russia, West Siberian Basin
GORE® Survey indicated several large geochemical features for both gas-condensate and oil. The observed geochemical features correspond perfectly with the known seismic situation. There are similarities between both geochemical models, indicating that the hydrocarbons are chemically related.
Papua New Guinea, Mogulu Structure
Survey was able to detect hydrocarbon microseepage through thick aquifers and thick volcanic sequences. It mapped out fault blocks, showing that some fault blocks have more potential than others
Red River Country, Texas, USA
GORE® Survey results correctly redefined field trend - Pre-survey geologic and seismic interpretation indicated the trend of deposition to be in a NW to SE direction. The GORE® Survey indicated the trend was NE to SW, which was confirmed by drilling.
http://www.gore.com/search/index?N=3223238+0087631+2586505&Ns=p_Title&nrvalue=&site=en_xx&type=docfinder&searchType=2
TOB, great info, the kind that we investors need to know.
After reading your first reference of the Gore Module, I embarked on my own research (evidently while you were compiling the message to which I am replying), and found this article, Amplified geochemical imaging: an enhanced view to optimize outcomes, referenced on the Gore site.
Here are some excerpts:
Here's an interesting PDF of Equator's farm-out brochure on its EEZ blocks, showing leads they've identified:
http://www.nventures.co.uk/wp-content/uploads/2012/04/Farm-Out-Brochure-Blocks-512-STP-15Nov2011.pdf
I wondered if they might have changed the document; looks like they did, based on your probe. Stonecap shows no JDZ block interests in their map showing OER's EEZ holdings.
However, here's an Oando slide presentation from July 2012 that lists JDZ Block 2 in OER's portfolio (page 22), but doesn't show or list it on the map of OER's Gulf of Guinea portfolio (page 20):
http://www.oandoenergyresources.com/wp-content/uploads/2011/12/Oando_Presentation_Abridged_August_2012.pdf
On the OER website, they do not show JDZ Block 2 on a currently-linked page showing their portfolio:
http://www.oandoenergyresources.com/projects/
However, Google uncovers this page, which apparently is not linked on the OER website:
http://www.oandoenergyresources.com/projects/equator-exploration-asset-summary/
So it seems, at best, that JDZ Block 2 is in limbo as far as OER is concerned, at worst completely divested. - LT
TOB, maybe you have some insight into this based on your discussions with ERHC personnel:
Frankly, the fabric seep studies seem a little pointless and a waste of time/money to me as a layman. You mention the studies in the post to which this is a reply, and so did Midtier: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=80390565
Based on the information we have thus far, the proposed oil sediments are thousands of feet down. And the block is huge. Does ERHC know where some seeps actually are, and is that what they are targeting?
ERHC has very competent technical people, so I know they must have a good reason/rationale for doing this. Just would like to know why they are including this in their work program, and if it is because they have seen some seeps.
Any info you can provide would be appreciated.
Still very optimistic on ERHC's prospects! - Longtimer
Hey Krom, given the historic lows during December, maybe they've decided to wait until 2013 to float the rights offering.
Great find, king. Shows JDZ Block 2 must still be in play.
However, I don't see any plans to drill stated on page 96. - LT
TOB, to use a baseball analogy, I view the Chad BDS 2008 Block as a solid base hitter (or maybe 2 or 3... Tega area, Maku area, and Focus Area 2) in the lineup. Reliable, odds-on favorites to get you on base.
The Kenya block is the slugger that could hit the ball out of the park, but could also strike out.
So if I had to make a choice, I would go with the solid base hitters, given the odds, to build my team.
But fortunately ERHC doesn't have to make a choice between the two. They now have solid-looking base hitters as well as a slugger on the team. And who knows if a new team member or two will be added soon.
All it will take for ERHC to win, however, is a good base hit. But the team is shaping up for a blockbuster game. I can't wait until the third or fourth inning! - LT
Correction...
I referred to the Benoy field as estimated to have 1 BBOE; it is more like 1/10th of that, 100 million barrels of crude oil, according to the USGS: http://minerals.usgs.gov/minerals/pubs/country/2011/myb3-2011-cd.pdf
Got the estimated value mixed up with the estimated resource size.
Still nothing to sneeze at, especially if ERHC were to find a field of that size in the same resource play further to the east. - LT
BDS 2008 Info from Special Shareholders Meeting
It was impressive to see how far along ERHC is with their technical work on BDS 2008 in Chad. It is also very encouraging to see specific information provided regarding the prospectivity of areas in the BDS 2008 Block. The following slides were part of Gertjan van Mechelen's presentation:
Gertjan pointed out that ERHC's current strategy in Chad is similar to Tullow's in Kenya in playing the rift margin, which is just inside the zigzagging SE boundary of BDS 2008 (shown in oval inset above).
It looks like ERHC is targeting a 5 km swath (going NNW to SSE) and a longer extent perpendicular to that near the Tega site, with a total depth of 12,800 ft.
ERHC has two initial focus areas in BDS 2008 as shown in the next slide, below. Area 2 includes the southern-most jog of the block, which is surrounded by prospects identified by Griffiths Energy, shown here. Also shown in that link is the close proximity of Griffiths proposed pipeline, which Gertjan emphasized as a major advantage for ERHC.
Notice also in the slide below that a healthy swath of the Doseo Basin is in focus area 2 of BDS 2008, the same rift-margin area that yielded the Benoy-1 well 60-100 km to the west, which is estimated to have 1 BBOE.
All of the above is excellent news for ERHC investors. However, what I think has disappointed some is the proposed timetable for the work program and how far off first drilling is:
According to this, it is going to be 3-4 years before the first exploration well is drilled. But hopefully this is the most conservative timeline, and maybe ERHC will be able to accelerate the program. Things move slow in the oil patch, and any invested in it have to set their expectations accordingly.
The main takeaway for me from Gertjan's Chad presentation is that ERHC is following a strategy of playing the rift margin, a strategy that has worked very well for Tullow in East Africa. - LT
Just got around to listening/viewing the videos from the special shareholders meeting, and found some quotes that I don't believe have been posted yet (unless I missed them).
Near the beginning, Peter remarked:
Just a reminder of how close ERHC's BDS 2008 block is to other prospects and discoveries. Notice in the map below how the southern-most jog of the block is right between two identified (though undrilled) prospects in the Borogop Block and very close to Griffiths' proposed pipeline. We are talking about just a few miles! (See scale at bottom of the image.):
Generally conservative ERHC states the following concerning this block:
You mean this page?:
http://webcache.googleusercontent.com/search?q=cache:ub22hwlMklUJ:www.minexcopetroleum.com/our-presence/sao-tome-e-principe/+&cd=1&hl=en&ct=clnk&gl=us
Guess this means they're out of the running? Maybe STP has settled on another player? - LT
Nice find, kingpindg. Don't know why ERHC hasn't shown this on their maps?! - LT
Krom, looks like ERHC has finally seen the light:
TOB, thanks for your continued excellent posts of pertinent facts.
This is much better than baseless opinion. - LT
Oil companies have been in Chad for quite some time, but don't discount the potential for new discoveries. It happened big time for CNPC, just to the north of Block Chari-Ouest III, in the Bongor Basin:
In last Tuesday's conference call slide presentation, they state in slide 14 that ERHC has a 50% working interest in the Chari-Ouest III Block:
But this is a little misleading. In their news release announcing the signing of the Chad EEA, it is stated that ERHC has "100 percent interest in half of Chari-Ouest III." So it would appear that ERHC is entitled to 100% of the concessionaire's production share from the block (until any farm-outs).
From their solicitation for farm-in partners, it appears they are going to focus their efforts on Chari-Ouest III initially: "The Chari-Ouest III block is expected to be the initial focus of the work program due to OPIC’s Benoy-1 discovery in the south of the block and its proximity to the Doba Basin oil fields (current production 122,500 BOPD)."
Slide 16 indicates the focus area will be in the southeast area of the block.
So perhaps ERHC has the eastern half of Chari-Ouest III. (For some background, see this post.)
Of all of ERHC's current holdings, I am the most excited in the short term about their Chad acreage, because more information is available to the company about the immediate surrounding area, the closeness of infrastructure, and the discoveries nearby. Plus, they have told us that they already have some drilling prospects in sight, complete with estimates:
TOB, thanks for posting these interviews to the IHub board.
Both Martin Wensrich and Gertjan van Mechelen, in particular, seem very competent. It certainly shows ERHC is serious about making the most of its newly acquired assets. - LT
LOL... if we hit a BBOE gusher, he'd find something negative to say about it. I can just hear it, "Look at all the taxes ERHC will have to pay!" Unbelievable!
Oil companies rarely shoot detailed seismic across an entire block. They focus on the most prospective areas, as Tullow did in Block 10BB:
As can be seen in this post, ERHC should have an idea of the most prospective areas of their block and concentrate on that. - LT
I should have added that the posting date of Dr. Rop's paper (8/4/2011) is nearly a year later than the date of Dr. Thuo's thesis (11/9/2010). - LT
Potential petroleum basins in ERHC's Kenya Block 11A
The map below is the official block map overlayed with potential petroleum basins as identified by petroleum geologist Bernard Kipsang Rop, Ph.D. in his research paper, Petroleum Potential of NW-Kenya Rift Basins: A Synopsis of Evidence and Issues:
As you can see, he identifies two huge potential petroleum basins in ERHC's Block 11A. Note also that he correctly identified basins in which oil has been found by Tullow recently.
(Note: I matched up the two maps based on the western border. You'll notice Lake Turkana does not match up quite exactly, indicating that some of the basins might be a little further east as you go from left to right. Also, the northern Kenyan border does not match due to each map using different delineations in the disputed Llemi triangle area.)
This expert's conclusions is encouraging and exciting! - Longtimer
All current shareholders should read the post to which this is a reply.
Excellent post, Strategyone! - LT
Thanks for the backgrounder on Block 11A, kingpindg!
The Llemi Triangle encompasses more of Block 11B than it does 11A. If the border were redrawn, the northwestern tip of Block 11A would be cut off to varying degrees, depending on which line was adopted (1902, 1938, 1947). But the main part of the Lotikipi Basin lies south of those lines. - LT
Nice summary of Dr. Thuo's thesis, Petemantx.
Yes, at this point Lotikipi is an unknown, although it is encouraging that he lists Gatome as his number two pick, which is in Block 11B, next door to ERHC's Block 11A. Adamantine Energy plans to commence studies on that block in the fall, so we can look forward to what that reveals. At this point it is truly a wildcat area, without benefit of any exploration wells having been drilled.
Dr. Thuo's observations regarding Lokichar have proven true with the Ngamia-1 discovery and other prospects identified: