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Exactly, what does it have to do with ERHC? Perhaps the article was doctored? Link please!
Seplat Petroleum Development Company Ltd may be a buyer or farm in partner for ERHC the way I read it. Im not sure why that would matter when contemplating a buyout of Afren?
ERHC has been trying to do this (raise exploration funds) for a year at least. This is the best form of raising cash to meet obligations imo.
I wonder what 50% of Chad block is worth? 20 million?
10% of Kenya 20 million? It all depends on seismic data, the bigger the offer the better the seismic looks.
Are they drilling to about 4000 feet in 2b? " Drilling is set to start before the end of the year and the well will take around 70 days to drill at an estimated gross cost of $20-$25 million".
Well this millionaire is going broke soon if the news and drilling results dont improve quickly. I bought in the 40 cent range and some more in 80 cent range. Never sold in a decade plus, day traders have not helped this stock. It is tempting to add at these levels but if they hit a billion or 4 billion barrels it wont matter.
The fact we are 12 months from drilling gives potential investors a lot of time to pull the trigger. In the meantime a sale of an asset or paying partner will help. In Texas many companies are cancelling drilling plans and closing down. Timing is everything.
gltalongs.
My favorite is the rumored 2.5 billion barrels in Kenyan Block 11a, that! would be welcome news. Are there any other blocks around 11a available? Otherwise why keep the seismic a secret.
This capital gains rumor is just that at this point, besides its a long road for ERHC before they have to worry about any Kenyan capital gains. ERHC has plenty of write offs. Least of our problems right now,imo.
A official direct PR from Cepsa on drilling plans in Block 11a would be nice, MONDAY.
Are we next? Afren Plc Receives Takeover Approach From NigeriaPhoto credit: Greig Davidson
By Rupert Hargreaves - Monday, 22 December, 2014
AFR
Shares in Afren (LSE: AFR) are surging today following the news that the company has received a “highly preliminary approach” from Nigeria’s SEPLAT Petroleum Development Company (LSE: SEPL), or Seplat for short.
The approach comes after a tough year for Afren, suffering from the falling price of Brent crude, which has fallen by more than 40% since mid-June. Nevertheless, bid speculation has been rife for some time now as Seplat has been steadily building a stake in Afren over the past few months.
News releases show that since the end of September, Seplat has acquired just over 7% of Afren.
However, even though Seplat has approached Afren, Afren’s press release on the matter, released earlier today, makes it quite clear that:
There can be no certainty that an offer will be made or as to the terms of any offer.
So there’s no indication of how much Seplat will offer for Afren. Additionally, as of yet there has been no comment on whether Afren’s shareholders will be offered cash or stock for their holdings. Under UK takeover rules, Seplat has until 5.00 pm on 19 January 2015 to either announce a firm intention to make an offer for Afren, or announce that it does not intend to make an offer for Afren.
Apparently they got my emails (thru Dan) about buying shares back.
"The board and management of ERHC felt urgent action was needed to permit insiders the opportunity to show confidence in ERHC and its oil exploration assets," said ERHC President and CEO Dr. Peter Ntephe.
http://www.mirandalawfirm.com/uploadedfiles/20140516_fc4aa9.pdf
June 2014
Ophir started seismic 2 months ago.
Ophir is next door to block 11 and its just beginning to get exciting. They have a full plate right now but the seismic data could reveal a trend into block 11.
LONDON – Ophir Energy has signed exploration and production-sharing contracts for two ultra-deepwater blocks offshore Gabon.
A3 and A4 are outboard of the company’s existing acreage in the North Gabon basin. Block A3, to be named the Nkouere PSC, covers 675 sq km (261 sq mi) while block A4 – the Nkawa PSC – extends more than 2,085 sq km (805 sq mi).
In both cases water depths vary from 2,000-2,500 m (6,562-8,202 ft). Ophir has a 100% interest, although the Gabonese state has the right to back into 20% of the PSCs in the event of commercial discoveries.
Ophir says analysis of its North Gabon drilling campaign earlier this year has enhanced the prospectivity of the basin’s deepwater distal margin, in particular the Cretaceous section where a proven oil-prone marine source rock is overlain by a series of deepwater coarse sands.
This represents a petroleum system with the potential for large stratigraphic and structural traps, the company adds.
Ophir is acquiring 8,600 sq km (3,320 sq mi) of 3D seismic over the play in its existing blocks, which will be expanded by a further 2,300 sq km (888 sq mi) to cover the two PSC areas.
10/24/2014
A lot of the locals like Ophir and such who have knowledge of surrounding blocks might have been notified ERHC was engaging Deloitte and didnt want someone taking their pot of oil without them having a shot at it. Btw, This isnt ultra deep water some of it is moderate this is the block closest to the Sao Tome islands. 3500 to 4000 wasnt it? Anyway, this Right of First refusal only gives the courtesy to an IOC to match or improve on any incoming bids for the block, its a good sign and may speed up development of the block. They may have paid for this option? or its a "long ago" promise to someone. imo
"Last winter, after careful evaluation of the seismic data available, ERHC selected EEZ Blocks 4 and 11 which, incidentally, are adjacent to the islands where water is not as deep as in most other EEZ Blocks. The comparatively shallow water depths should simplify drilling relative to the other Blocks. The Blocks are also east of the islands and close to Gabon’s many offshore oil discoveries.
Earlier in the year, Sao Tome's government short-listed four companies, including Portugal's Galp Energia, to bid on two oil blocks in its exclusive economic zone.
The close proximity of São Tomé & Príncipe’s offshore waters to the proven hydrocarbon systems in the adjacent waters of Nigeria, Cameroon, Equatorial Guinea and Gabon suggests the potential for hydrocarbons, which is further supported by regional seismic data and petroleum seeps seen on the islands.
http://www.offshore-mag.com/content/dam/offshore/print-articles/volume-74/12/1412OFFWestAfricaMap_1.pdf
Ophir (Roussette field) is just to the East of our Block 11.
Thats even better news. Lets see, 3 billion in EEZ, 1 billion in Kenya, 400 million in Chad....do the math.. lol
Got to Love the Jubilee comparison. Is our new MOU with one of these companies?
The Jubilee field was discovered in June 2007. It is located 60km offshore between the Deepwater Tano and West Cape Three Points blocks in Ghana.
The field's recoverable reserves are estimated to be more than 370 million barrels, with an upside potential of 1.8 billion barrels. It is located at a water depth of 1,100m.
Equity partners of the Deepwater Tano block are Tullow with 49.95%, Kosmos with 18%, Anadarko with 18%, Sabre Oil & Gas with 4.05%, and Ghana National Petroleum Corporation (GNPC) with 10%.
West Cape Three Points is held by Tullow with 22.9%, Kosmos with 30.88%, Anadarko with 30.88%, Sabre Oil & Gas with 1.85%, Ghana National Petroleum (GNPC) with 10%, and EO Group with 3.5%.
The Jubilee appraisal and development programme began at the end of 2008 and the Odum, Mahogany-2, Heydua-2 and Mahogany-3 wells were drilled.
Parallel to the appraisal drilling programme, phase I development of the core field has progressed at a rapid pace since July 2008. The field delivered first oil in December 2010. By May 2011, the field was producing 70,00bopd from five wells.
Good news abounds, we are drilling news, more partnership agreements news. Chad news tomorrow?
Up 30% tomorrow?
Why is it always a secret and poor timing? Are the secret partners reprocessing old data, doing dd for up to 6 months?
ERHC left the door open for better offers. Good job Peter, its about time even if its not timely. In 18 months oil will be back to $90 IMO.
ERHC Energy Inc. Signs Memorandum of Understanding for Sao Tome and Principe Exclusive Economic Zone
By GlobeNewswire, December 16, 2014
Grants First Right of Refusal to an IOC for Farm-In of EEZ Block 11 for Six Months
HOUSTON, Dec. 16, 2014 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCMKTS:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today announced the signing of a Memorandum of Understanding (MOU) with an International Operating Company ("IOC") related to Block 11 of the São Tomé and Príncipe Exclusive Economic Zone (EEZ). ERHC currently holds 100 percent interest in the Block.
Under terms of the MOU, ERHC agreed to grant first right of refusal to the IOC for a farm-out of EEZ Block 11 for a period of six months. Under the terms of the MOU, ERHC will keep the identity of the potential partner confidential except and until a definitive farm-out is agreed on and entered into.
Until a definitive farm-out agreement is entered into and approved, ERHC continues to operate EEZ Block 11. The work program during the first four-year phase includes re-processing existing data, completing an aeromagnetic survey over the Block and acquiring 2,500 km of 2D seismic data.
EEZ Block 11 totals 8,941 square km, situated directly east of the island of São Tomé and abuts the territorial waters of Gabon. ERHC's preliminary studies on currently available data indicate the possibility of a significant cretaceous play in Block 11 similar to the Jubilee Field offshore Ghana.
Read more: http://www.nasdaq.com/press-release/erhc-energy-inc-signs-memorandum-of-understanding-for-sao-tome-and-principe-exclusive-economic-zone-20141216-00212#ixzz3M7f0Fb6r
It will be fun having 100% up days, soon, if the data in Kenya is as good as they indicate.
While we wait... for advice.
Cowboy did you write this essay? or maybe Peter's son? lol
http://www.bestessaywriters.com/essay/international-petroleum-transaction/
Given the current sky falling environment can Peter get an extension on the PSC schedule in CHAD ??
Oh, Its "Challenging" thats an undervalued understatement!
"Cove achieved an increase in value of over 1,900 percent in a $2 billion acquisition by the Thai company PTTEP in August 2012. Cove's return on investment, in excess of $2 billion value creation in three years, made it one of 2012's most prominent public takeovers worldwide.
It is therefore up to companies like ERHC to show the resilience that they have been renowned for and position to take advantage of the opportunities that present in the new world of oil prices.
there is no reason to believe that the current cycle will not be reversed subsequently to the benefit of those who invest now.
as challenging as it is for current shareholders, is actually an opportunity to attract strategic new investment and investors into the company to re-invigorate the company's resources and strategy towards ultimate reward for both the company and its shareholders."
Nobody knows nothing. Peter will find us a farm in or buyer. GLTAL
If your in the East or West Texas oil field maybe but I would imagine in the outback NW kenya the day rates are very stable and costly as your lucky to even get a rig moved in there.
If Swala Energy can find a farm in a less desirable block (that CEPSA bailed out on) surely we can too.
Swala Energy hints possible Farm-in in Eastern Africa
DECEMBER 2, 2014 BY SAMUEL KAMAU MBOTE
Swala Energy has announced that it is in farm-in conversations in Eastern Africa as the company seeks ways of raising alternative funding transactions.
This follows the withdrawal of a share purchase plan by the company’s board as the company aims at raising $5 million to finance its drilling obligations ahead of the planned in 2015.
Swala which has already suspended its shares from trading since 24th November says the voluntary suspension may continue till 23rd December as the unnamed third party investor requested a period of exclusivity during which to carry out due diligence on the Company’s assets.
“During this process a substantial third party has approached the Company to request, for consideration, a period of exclusivity during which to carry out due diligence on the Company’s assets, with a view to concluding farm-in agreements on one or more of the Company’s projects,” reads the latest update by company secretary Adrian Di Carlo.
Swala adds it believes that the farm-in has the potential to have a material effect on the quantum, structure and terms of any fundraising.
A likely target for the farm-in is the 25% share expected to be re-assigned in Kenya’s block 12B from Spain’s Compañía Española de Petróleos CEPSA after its decision to withdraw from the licence on 31st August 2014.
The funds are to be applied to fund additional near-term work on the Company’s Tanzanian and Kenyan licenses, as well as for business development and general administrative purposes.
In particular to be used for additional work (particularly in Block 12B), basin modeling work and long-lead items for drilling in Tanzania, business development and general administrative expenditure.
Among drilling set for 2015 includes a well in block 12B where the company has identified a series of ten leads and prospects from which one (‘Ahero –“A”’) has been selected as a drilling target to be drilled in the second calendar half.
In Tanzania the company is in the process of interpreting data from a 200 km 2D seismic acquired over the Moshi Basin in the Pangani licence with preliminary interpretation of these new data allowing it to identify a number of potential structural leads which, after final processing of the field data, are expected to define potential targets for a 2015 drilling programme.
Swala is however quick to say there are no guarantees of a successful outcome to these discussions although talks are ongoing to formalize its engagement with the theird party.
Swala has a 29.2% net participating interest in the Pangani license, 29.2% net participating interest in the Kilosa-Kilombero license both in Tanzania and a 25% net participating interest in Kenya’s Block 12B.
Kentucky are you aka oilphant?
Please do the math for us lets hear it. Its still a screaming buy at these prices and you know there is also high probability of good news in Kenya.
Deloitte is just giving them options and marketing for a farm in. If oil falls to 40 a barrel everyone will have to "adjust", unlike our national debt and stupid liberal progressive government, ERHC has fiscal responsibility at least they try.
Whose estate is dumping shares? Someone died.
How long will it take the Saudis to go through their 700 billion cash reserve, thats when oil prices come back up.
450 million RESERVES @ only 35$/barrel / 3 billion shares is 5.25 a share
http://amazoil.co.uk/oil-gas-exploration/chad-map/
CPC (OPIC), the Taiwanese oil company’s recent benoy-1 discovery in their southern owned part of Chari-Ouest III expects net profits of $1.6 billion after a $42.76 million investment. Their largest Oil find in 40 years.
3.75 a share @only 25 bucks a barrel.
AND THATS ONLY CHAD!
http://www.hydrocarbonassets.com/pdf.php?id=253
I agree Jonnie, 450 million barrels and we have 100%, we are definitely undervalued.
Well as hard as it is to say given the SP. Like I said last week if CEPSA is excited then we have a excellent opportunity here. Peter said it too. Folks we now have a "RICH Portfolio"!
We need:
1. Offor to step up and have another investor participation now that we have better news?
2. News directly from CEPSA indicating excellent seismic and confirm drilling plans.
3. Another credible partner or a new one in EEZ or Chad with cash injection not based on stock price. We need a good partner!
EXXON?
GLTAL
We believe that the current valuation of ERHC presents a fabulous opportunity for savvy investors to get access to ERHC's rich portfolio of licenses. The current replacement value of each asset, as standalone investment opportunity, might currently be higher than the market valuation of the company. This is the 'undervaluation' of a company in the classic sense. Equity markets usually overreact to events such as a drop in oil prices and this has probably been what we've seen not only with ERHC but with many of the smaller explorers at our stage of the exploration value curve.
400,000 to date...humm well at .01 a share thats 40 millions shares.
Help me out, is he saying they could be issuing 180 million shares if they all convert?
I think it's far more nuanced than that. The current outlook on oil prices is generally affecting the valuation of exploration companies. Moreover, we have been quite conservative with convertible notes. We have total exposure to convertibles of less than $1.8 million, which in exploration company terms is a relatively low exposure indeed. Current conversion to date, as I speak is less than $400,000.
also tames the toxic issue..
Moreover, we have been quite conservative with convertible notes. We have total exposure to convertibles of less than $1.8 million, which in exploration company terms is a relatively low exposure indeed. Current conversion to date, as I speak is less than $400,000.
You do know that Peter cannot control the share price right? The only goal at this point is living up to the PSC's terms and then drilling. THAT IS ALL THAT MATTERS. I think they are trying to sell the JDZ rights and maybe even the EEZ, they have to raise money somehow.
Peter did get the JDZ drilled and they spent 400 million.
Now he is getting Kenya drilled but we have to pay our share this time!! Thats why the stock is depressed, they are raising money to pay our part and the terms have to look good to new investors. Can he ask 5 or 10 cents? NO, can they announce they are buying ERHC stock on the open market, yes would that help confidence and share price ? yes?
That being said there is always room for improvement in his PR releases and more pertinent information is needed. But, Once again we are tied to another Operator that controls the news releases.
I asked Dan as a prospective private investor if I could see the seismic and/or data evaluations / prospect reserve estimates etc..for Kenya finds as well as the terms ie discounts on shares. We will see. I also asked about the capital gains tax questions. I dont really expect an real answer from Dan.
Its difficult to believe anyone would be selling now with the current strong drilling plans, unless its an estate, on the other hand, they might start buying it back soon as well. Peter is selling stock at a discount to private investors imo. No need to follow this daily anymore. Drilling is all that matters. God be with us and ERHC to direct the drilling bit. Looking forward to seeing CEPSA's drilling actions to kick into high gear. Remember that CEPSA is the operator, we are not. Its mostly their call where to drill.
According to Dan K. , its 5 Percent not 35 % effective Jan 1, 2015 I found a foriegn corporation tax of 37.5 also, so I dont know. Hopefully Peter can answer this, after we make a billion profit it will become an possible issue.
http://www.ft.com/cms/s/0/6784670a-2ebb-11e4-afe4-00144feabdc0.html#axzz3KtXRxAio
The drilling announcement is strong.... Changes everything.
None of this matters,unless your a day trader. The only important event is how much oil is found. From recent events and studies it seems large quantities are very possible. Remember block 11a area has never had much exploration and only a single geographical study published that we can find to date. The old study indicates potential with drilling and seismic. More importantly the words used in recent Pr's from ERHC are very good and somewhat descriptive and match the studies reflections somewhat. Also, its part of the game not to reveal all your cards to neighboring blocks and local inhabitants till the drill bit is wet with oil.
Anam and Tarach are our hope in Kenya.
Here is a 3 year old study.
http://www.epgeology.com/articles/kenya-rift-basin.html
The black BLOB is on this link or study and its my guess the BLACK BLOB is 90% inside our Block 11a.
Lotikipi Basin
From the seismic profiles along Lines TVK-4, TVK-5, TVK-6 and TVK-7 (Figs.4,11and12), in the Lotikipi basin, it was possible to identify two sub-basins, between longitudes 34o30’E and 35o00’E and latitudes 4o15’N and 4o45’N, which have been named after the nearest river systems as a) the Anam-Natira Formation and b) the Tarach-Nakalale Formation [7].
The anticipated best-developed subsurface sedimentary section, identified on the basis of seismic and gravity studies, under the channels of the Anam and Natira rivers (Figs.2,4and11), has been named as the Anam-Natira Formation. The 1050 m thick sequence (between long 34o30’E and 35o00 N), showing P-wave velocity (Vp) between 3.0 and 4.0 km/s on TVK-4 line profile, is interpreted to consist chiefly of sandstones and shales [7]. The lower 350 m section, between 1900 m to 2250 m depth, should contain compact sandstones with frequent thick clay/shale layers, for which the Vp range is between 3.5 to 4.0 km/s.
The best-developed (Tertiary ?) section (1420 m thick) located beneath the Tarach and Nakalale river systems, characterized by Vp between 2.0 and 3.0 km/s, has been named as the Tarach-Nakalale Formation [7]. Deduced along TVK-6 the area covered under Longs. 34o45’E and 35o03’E and Lats. 4o24’ N and 4o42’ N shows a better development of this formation, which seems to be constituted of less consolidated sands, gravels, silts and clays which increasingly become more compact towards the basal part of the section (1560-2060m depth). The sub-basin on the TVK-6 line bounded by lats. 4o24’N and 4o42’ N and longs. 34o45’E and 35o03’E can be considered as representing the ‘type’ section of the Tarach-Nakalale Formation. The ‘type’ Tarach-Nakalale Formation sequence shows well-developed representation of both the members, which range to about 800 m thick each.
Future drilling and fossil finds will provide additional stratigraphic attributes to these seismically defined Formations in the Lotikipi basin. However, at this juncture, the section cannot be assigned a definite stratigraphic age, but occurring in similar tectonic and stratigraphic setup, it is suspected that the Anam-Natira Formation might be homotaxial to the Sharaf and Abu Gabra Formations (Neocomian or Albian-Aptian in age, [10] of southern Sudan. Although future drilling alone would enable assigning additional lithological attributes to these two subdivisions, in the absence of any other criteria to assign a stratigraphic age, it might help to consider Tarach-Nakalale Formation as coeval to the Kordofan Group of southern Sudan (early Tertiary in age, [10].
Additionally, one might also point out that the sub-basins in which the thicker Anam-Natira Formation sequences (Upper Cretaceous?) are suspected are different than the sub-basins in which a greater thickness of Tarach-Nakalale Formation (Lower Tertiary?) is anticipated [7]. Since there has been no exploratory wells drilled in the Lotikipi basin, most of the prognostic evaluation of the basin (Fig. 12) would depend upon the evaluation done on rocks of equivalent age belonging to the other basins (along the NW-SE-trending Anza and Abu Gabra Rifts – Fig.3).
Wrong, Nothing matters but finding oil, lots of oil, dilution is a necessary factor because bankrupcy or selling out at a loss is the alternative. Finding oil will calm the dilution ghost.
If ERHC ends up with 3 billion shares outstanding, but finds a billion barrels of oil whats the share Price???
Regional seismic lines show that Mid to Late Cretaceous strata extend far into the ultra-deepwater and certainly beneath the present-day volcanic edifaces such as Bioko Island. This is
evidenced by the oil seeps on the volcanic trend in Sao Tome and the occurrence of Turonian ammoniteson Bioko. The presence of volcanics in this setting therefore need not preclude hydrocarbon
occurrences in the vicinity of Bioko and the other islands in the chain, including Annobon.Exploration is at an immature stage in offshore Bioko and holds considerable potential for future
discoveries. The deep water areas to the south and west of Bioko hold potential, particularlywithin large fan-like mound features recognised on seismic data in front of the toe-thrust limit,
which are as yet untested by drilling
JDZ was ultra deep very high risk totally unexplored. If oil was found we would all be very happy. We didnt there yet. Thats the oil business.
The oil seepage is on beaches of the Sao Tome islands. If CEPSA is drilling after running state of the art seismic testing and dont need 3d thats very good news. This is a pure wildcat play, but the payoff is potentially bigger than most because the reservoirs can be huge. Its time to BUY while its dirt cheap imo.
http://www.cmeyanchama.com/Documents/Guinee/pguinea_Hydrocarbons_and_Mining.pdf
Equatorial Guinea territory overlies parts of two world-class petroliferous sedimentary basins.
Both are highly prospective for hydrocarbons with proven petroleum systems including marine
oil-prone source rocks and high quality sandstone reservoirs.
In the north of the country around Bioko, the offshore sector overlies the distal parts of the Niger
Delta-Rio del Rey basin system. The Niger Delta is one of the world's largest petroleum provinces
with estimated proven reserves of 48 billion bbls of oil and 135Tcf of gas. The Equatorial
Guinea part of the basin has established oil and gas production from the Zafiro, Ceiba and Alba
fields plus a number of other discoveries.
The southern part of Equatorial Guinea's offshore sector overlies the Rio Muni Basin. This is contiguous
with the Kribi-Campo (Douala) Basin of Cameroon to the north (which hosts the Sanaga
Sud and Kribi oil and gas fields), and with the North Gabon Basin to the south which contains
numerous oil and gas discoveries. The excellent potential of the Rio Muni Basin has been demonstrated
by the oil production at Ceiba and Okume fields and the continuing discoveries.
The sedimentary section beneath both the Bioko and Rio Muni areas extends oceanward to the
territorial limit of Equatorial Guinea. The sediments of the distal Niger Delta Basin and those of
the deep water Douala and
Rio Muni basins merge in
the region south of Bioko,
giving significant petroleum
potential to the whole of
Equatorial Guinea's offshore
areas.
Industry attention is now
extending to the ultra-deepwater
Gulf of Guinea around
the islands of the Cameroon
volcanic trend which include
the Equatorial Guinean
island of Annobon. Here it
is postulated that the extensive
offshore economic zone
could contain a thick sedimentary
section with petroleum
potential, as evidenced
by oil seeps on the neighbouring
volcanic islands of
Sao Tome and Princ