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Under a penny, walldog...
Don't get my hopes up, LOL. I've had to holster my trigger finger lately because I'm buying a house on the northshore. The pps drops close to a penny and that finger will come flying out very quickly!
Bklyn, a little correction to your example...
With the 5% tax and 50% royalty, your $6.50 will fall a little short of $3.25/share. Still not bad though.
OT, ORTE is running quite nicely today...
Check out the new article posted today. Their process allows production of a barrel of oil from Canada's tar sands at $2 to $3 dollars per barrel.
Gig, if that would be true...
Mongo has accumulated just about all the shares he can without revealing himself by statute. He could buy about 5.5 million more shares but with 710 million shares outstanding total, Mongo would become and insider and would have to start filing insider reports.
He's too much of a "monkey" to have that many shares, LOL.
From what I'm hearing...
Things are going very well over there.
You've got something different?
Mongo, you seem to be confusing...
an administrations "fiduciary responsibility" with a corporations "financial obligations".
The only thing ERHC "owes" it's shareholders is to act in a responsible manner in the day to day operations of the company. If everything works out alright and I receive some sort of financial return, I will be thankful. If something happens and I lose my investment, oh well, that's the breaks.
I'm not over extended by any means. Every share I have has been paid in cash.
I think that is almost what they call capitalism?!?!?!?
No, Mongo. It's blatant manipulation of what...
the financial statements indicate by you.
The deficit in Members' Equity is not a debt. It is not owed to ANYBODY! ERHC is a development stage enterprise with rights to oil acreage that COULD contain what some would call the "motherload".
The related party debt (accrued salaries & wages) will probably never be paid in all likelyhood. Everyone does or should expect that debt to be converted to equity. It is a common practice in the business world to lure top executives.
Finally, I didn't call the company untrustworthy or the financial statements inaccurate. Those were characteristics I labled you with.
Hey Mark and Cobra...
I have my season tickets ready! The Tigers have 6 great home games this year.
I hope the Vols spank Urine Meyer. SOB seems like a Darth Visor clone so far, LOL.
Mongo, your post was hardly accurate and trustworthy...
Shall I go into details? hmmmmmmmmmm!!!
Why don't you respond anymore? Cat got your tongue? Or is it that you just can't rationalize my posts into something you can use to your benefit in bashing the stock?
Tennessee loses to LSU and they better hope...
they beat Florida the week before. UF and LSU on the road in back to back weekends is a tough task to accomplish for anyone.
Doubt it, pete...
He would've already posted it on a message board.
Better question, Mongo...
What do I know about the FAB shares that you don't know?
maestro, you are talking about Mongo, LOL.**
Maestro, don't know where you're pulling that 2 years...
from but a $35 million well will only take 28 days at 25,000 bpd to recover the costs. At 12,500 bpd it would take 56 days.
If a deepwater well would take two years to recover the cost they'd probably say it's not commercially viable. That well would only be producing 960 bpd.
Max, I'm not saying its absolute...
and I'll admit to being out of touch with the industry for the last 10 years but I haven't seen anything to the contrary except for on a message board. Until it comes out otherwise....I'm not holding my hopes up to be knocked back down.
maestro, like nwtf said...
The big dogs eat first in the oil patch. Unless the normal procedures have been changed, ERHC doesn't get revenue until PXD/NBL have recovered their costs.
And I can guarantee you that's how it worked in the early '90s when I was a limited partner in a company investing in working interests for rejuvenated wells.
That's how I read it too, mabenn.**
Balance, I'll have to pick apart that article for you...
sometimes next week. I need to get my house ready for listing Monday which is why I've been absent since after work.
I might have to think about it that long, also, LOL. Towards the bottom of that article it states "cost recovery from up to 80 percent of production after royalty."
I don't like the depreciation of dryhole costs either. That should be a direct write-off.
Sorry for my shortness, K9...
I agree, it is spliting hairs but what do you expect from a CPA? LOL
I guess my distinction is that if they were to hit a dryhole ERHC would not be paying anything at all and PXD/NBL would be stuck with the out of pocket costs for the dryhole.
Now if they strike oil, PXD/NBL get to recover all of their costs from the production before ERHC gets to share the revenue.
In essence, ERHC has the best of both worlds. If there is oil down there, ERHC will get some of the cash flows. If there is no oil, it doesn't cost ERHC a dime in risk.
From a punch article, magic...
"However, the PSC has minor variations depending on the depth at which the oil block is located, which also varies depending on how fast the oil companies were able to recover their cost."
If I'm not mistaken, which definitely wouldn't be a first, operators will be allowed to recover 100% of their cost before revenue participation in these deep water blocks.
Link to the post with the Punch article:
http://www.investorshub.com/boards/read_msg.asp?message_id=7067043
Sixth paragraph.
Sorry, magic...
The "po-tay-to, not po-tah-to" kinda rubbed me the wrong way after a long day at the office.
That is exactly what will happen, maestro...
Not even Nigeria or STP will receive a dime until all up-front costs are recovered by PXD/NBL. This is standard operating procedure in the oilpatch.
You're just ignorant of how the oilfield works.**
K9, your scenario indicates ERHC will participate...
in revenue sharing once production begins which is totally ignorant of the facts.
Once production begins, PXD/NBL will receive 100% of the revenues that ERHC AND PXD/NBL would receive until all of their up-front costs are recovered. Once those up-front costs are recovered ERHC will participate in the revenue sharing at the lower percentage.
The 15% ERHC gave up in blocks 2 and 4 are, ineffect, the "interest" for the loan of the up-front costs.
maestro, ERHC won't have to pay any costs back...
but they will NOT participate in revenue sharing until PXD/NBL recover all of their costs.
nwtf, you're not gonna get a disagreement from me...
but developing a field means multiple wells and on a well by well basis you won't come out much different than my example. The wild card is the cost of FPSOs/pipelines.
gssr, that's just standard operating procedure...
in the oil patch. It's not that big a deal if you think about it. Take a well that produces 40,000 bpd and costs $35 million to drill. At $60 per barrel that is only 14.58 days of production. Now this example does not take into account all necessary expenses to operate a well, either.
Max, that's how a carried interest works...
There will be no agreed upon percentage. PXD/NBL would tell them to take it or leave it. That's a standard agreement in the oilfield.
Carried interest defined...
CARRIED INTEREST - An arrangement under which an interest in oil and gas rights is assigned in consideration for the assignee advancing all the funds to develop and operate an oil or gas property.
ERHC's interest is carried whereby PXD/NBL must incur all development costs to production, subject to payback from future cash flows. PXD/NBL will receive 100% of the revenue from any and all wells until they have recovered all of their costs. That also means before the JDA receives the 5% royalty or the 50% tax.
Since I believe the indies will not be carried, the indies will participate in revenue sharing from the first barrel of oil produced.
PSCs and JOAs must be progressing well.**
Correction Mongo, XOM got back-slapped out.**
Snow, it seems that some major oil companies...
believe a lot different than you. Even XOM was fighting for blocks 2 and 4 before it had to admit defeat by a minnow.
Also, just so we're on the same page, Mongo...
Most of the time when a buyout is proposed, the target company is under performing or the acquiring firm blieves it could management the target better. There is no real significant premium put on the buyout price.
Now if you want to see any company's stock sell for a 10X multiple, look at just about any company on one of the major exchanges and see what the P/E ratio is. Yeah, I know. ERHE is not on a major exchange....give it a year or so and come see me!
"trot out something new"...
Talk about the pot calling the kettle black! You're posting the SOS (same ole shit if you don't understand smoke signals), Mongo.
When will you bring out something new that is relevant to a develpment stage enterprise?
Mongo, I could...
As soon as you show me a company that was undervalued by at least $4.50 per share and was priced at $.40 per share.
Platina, you can also use...
Spybot Search & Destroy. It pretty much does the same thing as Adware but it does search for a few different things.
Spybot can be downloaded free at download.com.
LOL, now we know why Mongo is here.**
Hey ds1,...
You know who I get my info from. I was just told that in effect it would fall through.
I also know who you get your info from and would deem it VERY reliable. More reliable than my source as a matter of fact although my source gets info from your source and the JDA. I just don't know how often my source talks to your source, LOL.
I was just stating what I've heard.
idcc, my understanding is nobody wants...
any further dilution.
Rancho, it is just talk...
They will not sell anytime soon. I'd doubt very seriously anyone is going to offer what insiders would be willing to sell for. That is what was meant by my previous post.
That is from the same source!