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BB: Can you expand on Oily's "Oil + 3.67" statement?
I here you Forrest Gump!
Does the EEZ have a sizeable Subsalt Reserve as well?
Angola's Subsalt Oil Reserves May Resemble Brazil's
by Bernd Radowitz Dow Jones Newswires Wednesday, March 18, 2009
VIENNA (Dow Jones Newswires), Mar. 18, 2009
Geological similarities between Angola's and Brazil's subsalt areas suggest that future exploratory drilling on Angola's continental shelf may one day find oil reserves similar to Brazil's recent large discoveries, a Sonangol scientist said Wednesday.
Sonangol, Angola's state oil firm, has started preliminary studies into Angola's subsalt region over the last several months.
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Angola Blocks
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The company is now preparing for seismic and other geological studies -- expected to cost hundreds of million of dollars -- to assess the size of reserves in the country's subsalt region, said Luman Sebastiao, a geoscientist for Angola state oil firm Sonangol's exploration unit.
The first exploratory drilling of Angola's subsalt area may occur within three or four years, Sebastiao told Dow Jones Newswires, while attending the fourth Organization of Petroleum Exporting Countries International Seminar in Vienna. Angola's oil minister is OPEC's current president.
"The Angolan and the Brazilian continental shelves have various similarities as they have been joined for a certain geological period," Sebastiao said.
Brazilian state-run oil firm Petroleo Brasileiro SA in the past two years has announced several massive oil finds in the subsalt area off Brazil's coast that together contain dozens of billions of barrels in reserves.
Oil found in the area is usually at water depths of around 2,000 meters, and several thousand meters further below layers of sand, rocks and salt -- making exploration and production challenging and expensive.
Angola's subsalt reserves could be "gigantic," and even as big as Brazil's, Sebastiao said, though he acknowledged Angola's subsalt exploratory drilling hasn't yet begun.
The subsalt is Angola's next exploration front, after deep and ultra-deep exploration, Sebastiao said, adding that unlike in Brazil, Angola's subsalt region is found both onshore and offshore.
Angola's onshore subsalt region lies about 4,000 meters below the ground, while the offshore subsalt region lies even deeper, Sebastiao said.
Brazil's Petrobras has been helping Sonangol in starting to study its subsalt region, and many Sonangol technicians have been trained in the area in Brazil, Sebastiao said.
"Petrobras is our great example in this area," the Sonangol scientist said.
Angola's studies into its subsalt area at first are concentrating on the Kwanza onshore and offshore basin, and the Congo basin. At a later stage, Angola will study more southern regions.
Copyright (c) 2009 Dow Jones & Company, Inc.
Two U.S. Super-majors did not need to sit around and babysit the Junior and Smallfry Oilers. CVX and Mr. Schull can handle that. Once oil is found the Tiger will return and with a 2% profit oil from AXC, The Big Cat can see the drilling info and then Pounce, should the #'s be as good as we all hope.
Good Luck to All Longs.
Sneak
Gasman: JDZ oil Headed for U.S. market. Tiger will own GOG with U.S. Military Located in Area.
Germlin: Rigzone.com has the news. It is free.
Oily: So the Tiger Starts to Growl! and Oil @ $100.00 plus, Interesting.
Balance: Can you repost the "WHITE BOARD" from a year ago this month? Maybe we can see more clearly now.
Slap Shot SCOOOOOORE!!! Thanks Ruby
Maybe Things will change for ERHE.
Barney Frank: I Expect Uptick Rule Back in Place Soon
Tuesday, March 10, 2009 11:50 AM
Article Font Size
The head of the U.S. House Financial Services Committee said on Tuesday the Securities and Exchange Commission would soon reimpose the so-called "uptick" rule, which forces short sellers to sell at a price higher than the previous trade.
"I've spoken to Chair (Mary) Schapiro of the SEC. I am hopeful the uptick rule will be restored within a month," Rep. Barney Frank told reporters. "Mary is moving towards the uptick rule, which some people think is very important, some people think it's not important, nobody thinks it does any harm. I think that will go back (into effect)."
At her confirmation hearing in January, Schapiro told lawmakers the agency would look at the entire area of short- selling and whether to reinstitute the uptick rule.
© 2009 Reuters. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.
Citi Bank has joined the ranks of the bottom dwelling penny stocks as well. who would have thought!
This board is starting to LOOK like "RB". Time is on our side (Drilling late 3rd quarter), So sit back and down a feeeeeew drinks to settle the nerves and enjoy the ride. The recent share price spike was just a little tremor, The Big Quake comes later in the year.
PHONEMAN: MARK WILL GET TWO $5.00 FOOT LONGS.
SPP: After reading Verenex Energy's 3rd quarter report, They are in a CASH CRUNCH. They are doing better than EEL IMO. So taking the $$$ (No Free Ride)is better in this Current Economic Environment.
Thank you for posting
sneak
What If? ERHE splits into class "A" shares JDZ rights and class "B' shares EEZ rights. 361 million shares in each class.
AXC gives 1 share of AXC for 2.33 shares of ERHE'S class "A" shares or about $10.30 for each ERHE share as SEO wanted.
Oily, I find your posting the most interesting ( tid pits of info in puzzle form that execises the mind to ponder what if), When might the cat be let out of the Bag for this Loooooong Timer?
Oily: 4.63 to 1 for 5.75?
spp 119 6000 cubic fet of gas = 1 boe
sneak
oil-cowboy 6000 cubic feet of gas = 1 boe
sneak
Thank you for your insightful input.
Maybe the AA had a bank account with Mr. Stanford in one of his offshore banks.
Majic: China can buy up all the commodities it wants but if they do not provide jobs (income) for the chinese workers they are in serious trouble! China closed 70,000 manufacturing plants last year.
Crappie: NO, With all of China's money ($1 Trillion U.S. dollars) it is only about $800.00 per each chinese person. In China jobs are more important than oil at this point. Oil will take years to get out of the ground and billions to develope the fields, only to get sold on world markets. The Chinese wealth rest in it's ability to mass produce manufactured goods for the world to consume. The money they could make developing oil fields pales in comparison. They do not mind pitching in (Nigeria - SEO), but will leave the oil field development and production to the Exxon's of the world. They will continue to buy the debts of the U.S. and other nations in order to keep jobs at home plentiful.
Have a nice day
Sneak
Statfor's Report: What President Obama's policy maybe for the U.S. as it relates to West Africa.
Nigeria
Nigeria is a country with artificial boundaries, drawn by British colonial authorities; its territory comprises everything from desert in the North to tropical swamp in the South. In such an unnatural political entity, maintaining central control over 140 million people and 250 tribes has required Nigerian governments to rule with a heavy hand.
Moreover, Nigerian rulers have shown little hesitation to use deadly force or coercion in order to safeguard control over Nigeria’s one critical resource: oil. Nigeria’s key natural asset — found in swampy, difficult-to-occupy terrain in the southern reaches of the country — finances not only the country’s regional influence but also its very survival. Abuja is trying to manage tensions in the volatile and oil-rich Niger Delta region, balancing the country’s interests with those of the region’s dominant Ijaw tribe in order to protect production facilities from militant attacks.
Abuja is also seeking to maintain its influence as a dominant power in West Africa. Its deployment of troops for peacekeeping forces, its banking and commercial interests and its ability to provide oil to neighboring countries are tools Nigeria uses to maintain its sphere of influence.
U.S. and Nigerian interests in the Gulf of Guinea and West Africa largely overlap. Above all, Washington wants two things from Nigeria: oil and a partner in guaranteeing regional security.
Nigeria is the fifth-largest foreign supplier of crude to the United States, and both countries want a stake in nascent energy-producing states Equatorial Guinea and Sao Tome & Principe. Both also want to prevent a return to regionalized conflict in West African states including Sierra Leone and Liberia. Abuja does not, however, want Washington poking its head too far into internal Nigerian politics, calling for improved governance or pushing to reduce corruption.
Given the confluence of interests, the Obama administration will likely support Abuja’s backroom moves to maintain a sphere of influence through West Africa, as well as an initiative to, in effect, buy the temporary loyalty of the Niger Delta region’s Ijaw tribe with a power-sharing agreement.
BB: What's your take on Oily's Addaxx-ERHE merger talks? Is the Cat out of the bag? Asian interest maybe because of this merger talk? Will ERHE split the company into 1/2 JDZ rights and 1/2 EEZ rights?
Maybe Addax gives 1 share of AXC for 2.31 shares of ERHE'S JDZ rights = $9.73 a share? and ERHE looks for EEZ suitors. or does Addax take all in a 1 share AXC for 4.62 shares of ERHE?
The Asian Cat on a Ball & Chain!
Geopolitical Diary: Why China Needs U.S. Debt
February 13, 2009
China does not see any choice but to keep buying U.S. government debt, Luo Ping, a director-general at the China Banking Regulatory Commission (CBRC), told a New York risk-managers conference on Thursday. The Financial Times quoted him as saying: “Except for U.S. Treasuries, what can you hold? Gold? You don’t hold Japanese government bonds or U.K. bonds. U.S. Treasuries are the safe-haven. For everyone, including China, it is the only option.” Even if the dollar depreciates because of Washington’s financial bailouts, he added, China has no other options.
Luo is acknowledging something of an open secret. Despite occasional hints (or threats) that China might attempt to bankrupt the United States by suddenly selling all of the U.S. debt it holds, that really is not an option. China would be economically destroyed in the process, unless there was some alternative place for Beijing to invest. For a number of reasons, there is none.
Over the past two decades, the United States and China have developed a special relationship based on the safety of U.S. debt. In essence, the United States gives China access to the wealthiest consumer market in the world, which in turn soaks up China’s massive output of consumer goods. This not only provides income for Chinese exporters, but also helps ensure social stability in China by providing employment — which is Beijing’s primary economic policy goal. China in turn invests its large trade surpluses, earned in U.S. dollars, into U.S. Treasury debt (e.g., 30-year bonds or 10-year notes). This allows China to store its earnings in one of the largest and most liquid financial markets in the world, without needing to convert between currencies. Meanwhile, the recycling of surpluses into Treasury instruments helps to bankroll continued U.S. spending. It is vendor financing on a global scale.
This relationship has fueled unprecedented booms in both U.S. consumer spending and Chinese industrialization. Even in the midst of recession, China continues to sock away savings — but now, because of the financial crisis, questions are being raised as to whether U.S. Treasury debt is the best vehicle for storing those funds.
Simply put, it costs a lot to buttress a collapsing financial market. As the cost of U.S. financial bailouts piles up, Washington’s balance sheet is deteriorating. Since the credit crisis began in the fourth quarter of 2007, bailouts have put U.S. government commitments at nearly $9 trillion. To be sure, this is more akin to a line of credit than a tally of real spending — though the actual federal outlays to date, around $3 trillion, represent roughly 20 percent of U.S. gross domestic product (GDP). At any rate, the stakes are high and investors are nervous.
China is the largest holder of U.S. government debt, so it is no wonder that Yu Yongding, the head of China’s World Economics and Politics Institute and a former adviser to the central bank, on Wednesday said that because of its “reckless policies” the United States should “make the Chinese feel confident that the value of the assets at least will not be eroded in a significant way.” His remarks were meant to impress upon Washington that, as the primary financier of U.S. debt, China holds considerable power in the relationship.
In general, as a country’s balance sheet comes under increasing strain, investors tend to sell that country’s assets and move their funds to places with more attractive fundamentals (such as a trade or budget surplus). But the notion that U.S. debt is becoming a questionable asset and is about to be dumped by investors has not proved true. Instead, money from all over the world has been flooding into American markets, sending the dollar to its highest levels — and bond yields to their lowest — in years.
U.S. Treasuries remain the primary vehicle for investing surpluses, and for Chinese surpluses in particular Chinese. The reasons are many. For one thing, few other countries have debt markets large enough to support the level of investment China needs to make. The U.S. debt market is larger than the three next largest combined. In fact, only Japan has a debt market larger than that of the United States — but because Japan’s debt represents some 170 percent of its GDP, it has a credit rating no better than that of the better-run states in sub-Saharan Africa. The U.S. Treasury debt market, while large, represents only about half of U.S. GDP — a much more manageable fraction.
Of the top ten largest debt markets, the four that are in the eurozone — Germany, France, Italy and Spain — could provide viable alternatives for China. But these also pose problems. Much like Middle Eastern oil states, China not only receives most of its income in dollars, but also effectively pegs its own currency on the dollar. This means that for the Chinese, savings and investments held in dollar-denominated assets are relatively safe, stable and accessible. From Beijing’s perspective, it makes little sense to convert surplus dollars into euros, only to grow more exposed to currency fluctuations. (And even that assumes that one trusts the financial governance of other states – for example, Italy.)
If Beijing does not view euro-based debt as a viable alternative to the United States because of currency stability, it has even less confidence in other Top Ten debt markets, which are denominated in even less stable currencies. The markets for the Brazilian real, the South Korean won, and even the Canadian dollar and British pound are simply too small, fractured and volatile to provide the level of safety that the U.S. dollar does. And in any case, all of these markets are much too small to absorb Chinese trade surpluses month after month. Only the regular issuance of multibillion-dollar debt tranches by the United States, fueled by U.S. budget and trade deficits, can suffice.
If government paper cannot fill its needs, China could turn to commodities — if anything, perhaps gold could provide a viable store of value without subjecting China to the fiscal swashbuckling of a foreign government. But even here, the size of the gold market could not support Beijing’s investment needs. Even if China were somehow able to absorb the total annual output of the world’s gold mines — roughly 80 million troy ounces — doing so would both collapse global debt markets and send gold prices to stratospheric heights. (Not exactly a welcome scenario for a country utterly dependent upon international trade.) And for all that, China could sock away the same amount of value after only about three months of trading with the United States.
Ultimately, steering funds clear of American debt markets is not desirable — or even possible — for the Chinese. Luo, the CBRC official (who is known for his colloquial style), stated Beijing’s viewpoint about as plainly as it can be put during his speech in New York, saying: “We hate you guys, but there is nothing much we can do.”
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midtieroil: Do no forget about the Sister Cat "CVX", They took Unocal from the Chinese after a Congressional protest about National Security Interset that blocked the Chinese. CVX also has a former employee on the inside of ADDAX.
Sneak
Herload: The U.S. Military Naval base that will come to the area will not be Protecting China's Oil Interest. The U.S. Navy will keep open the flow of oil to the World Warkets.
That cat is on a Ball and Chain, will down in deep water, but may roar loud at feeding time!
BB: If AXC double the number of shares outstanding to 312 million and uses 156 million of the share to merge with ERHC, Then using a new (low balled)reserve estimate of 291 million for oil and gas in the entire JDZ. Then SEO will have a 20% share of AXC and when drilling results come in 4 to 5 times higher, he will have his price.
emdyal: If block one was so bad why did CVX hold on? They should have cut an run also. For U.S. National Security office to get involved, One can not help but think that a massive amount of oil is in the JDZ. The big oil tiger is not a scavenger. When the big cat eats it will devour everything it wants.
SPP: I agree, The Big oil cat has been playing Possum with the JDZ find.
Exxon's Deep Water West African Oil Finding Technology.
http://www.exxonmobil.com/Corporate/Newsroom/Publications/deepwater/exploring/mn_exploring.html
Exxon is also a large player in that Kazakhstan Caspian Sea play that Meridian Talked about.
Exxon Mobil earned more than $1,287 of profit for every second of 2007. (New York Times)
How does Africa play into Exxon's strategy?
By 2010, Africa will be the biggest single source of oil for Exxon — and by 2015, West Africa will be the world's largest oil source outside of OPEC.
(PFC Energy)
BB: Was it Meridian who said that block-1 of the JDZ had 3000 net feet of oil and it was on par with the kazakhstan caspian sea find few years ago that hold 9 to 25 billion barrels.
Redtxdog: Rigzone had an article about how the big oil companies are not pulling back. The smaller oil companies are, hence the ROO. The big oil companies may start asking for a discount on rig prices or they may reconsider the long term relations with said companies.
KOWNSKI: Chevron's Obo-1 of the JDZ was OFF TARGET!( The Edge of the target)The Bucksin well in the GOM was in the body of the TARGET! With all the delays by the big boys one can not help but think that there is more oil than they will admit too.
Chevron Hits It Big, Spies Oil at Buckskin in Deepwater GOM
Chevron Corp. Thursday, February 05, 2009
Chevron has announced a new deepwater oil discovery at the Buckskin prospect located in the deepwater U.S. Gulf of Mexico. The block is approximately 190 miles southeast of Houston, Texas, and 44 miles west of Chevron's 2004 Jack discovery, which is also in the lower tertiary.
The Buckskin No. 1 discovery well encountered more than 300 feet of net pay. The well is located in approximately 6,920 feet of water and was drilled to a depth of 29,404 feet.
CHEVRON CLAIMS THE 150 NET FEET IN OBO-1 IS NOTHING TO CROW ABOUT!
Does anyone know how much gas is in the 9 Blocks of the JDZ?
6,000 cubic feet = one boe!