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The things I have read say dollars, many who should know in Nigeria say he is worth 6,000,000,000, he has admited to the press to be worth 3,000,000,000 - dollars not niria
With my tinfoil hat still on, I venture an opinion that 50,000,000 in shares might be needed for paybacks & that is why the conpany registered that many.
I still have my tin foil hat on - I think our instutitional buyer had a favor comming from someone. and .22 cents is it.
Longtimer, I my self have somewhat of a conspiracy therory going. I think the share price has been held down for a reason, I think Feltang getting their shares is a matter of timing and this sale is some kind of payback/favor to a friend of Offor, JMHO. I may be right or wrong on all counts, I just feel the timing is showing something is about to happen. Offor does not object because it has already met his approval, formally or informally. I think our upside event is in the near future & once it happens the stock price will soar, maybe to a dollar or more and not retreat to current levels again.
I am also wearing my tinfoil hat so the government can't learn this information from me. I think there has to be a reason why Feltang was done now at $.24 and not a year ago when stock was down to $.11.
hunter, articles and links have been posted on this site about the Nigerian gov't siezing several banks and sueing notable political figures including Emekka Offor for payment on loans from the siezed banks, one of which was First Alantic. The organization who siezed the banks is the nigerian regulatory agency, their equilivent of the FDIC. It was all in messages and links posted on this board, Offor's defence was he had already settled his loan & they are still fighting about the return of his stock.
This fits what I have seen before - Offor is dealing with the Nigerian FDIC to try and get the stock back & they are not in agreement as to how much Offor still owes, I believe Offor has filed a lawsuit or threatend to be sure the stock is not sold. With the stock price where it is the Nigerian FDIC is better off getting a settlement from Offor
Dat, my understanding is that First Alantic is one of the banks the Nigerian version of the FDIC has taken over. The shares were furnished to the bank to keep SEO from being sued by this organization. Several banks were taken over in the same few months and the Nigerian version of the FDIC was suing several wealthy Nigerians, many with ownership in the banks to collect their non proforming loans. SEO had already co-lateralized his loan with these shares.
SEO would want these shares back because who ever owns them at the time of a buyout would get the buyout price, currently the Nigerian government.
All this information has been picked up from posts to this board and links to other articles posted on this board. I am a free member and can't do serches of the mesage database.
Exactly, untill the 8% of the shares used by SEO as security and now held by the Nigerian FDIC are reclamed SEO has no interest in share price climbing, IMHO.
With the bank closing SEO's route to reclaiming these shares is both easier and more difficult, the price is negoitatible, but the people holding the shares are not under his control. At current share price the shares are worth about $14,500,000, I am sure they are holding out for more.
I forgot the disposition of the stock SEO used as security for the loan now in the hands of the nigerian version of the FDIC, Seo has been trying to reclaim the stock and would not IMO make a deal till he gets it back
Sneak, there are too many unknowns now for their to be a sale, JMHO. Before a sale can be negoitated we need arbitration to be over for block 5 & 6, our 15% block in EEZ to be determined, production agreements for EEZ block 4 & 11. We also need results from wells in block 2, 3 and 4 to be released, without these things in place there is too much unknown to get a buyout price both sides can agree to.
Ponzi, the fair market value of the stock at date of issue is US income to Feltang. The highest stock value would result in more income being taxed in the US at higher rates, if you expect stock prices to be going down you wait and pay on less fair market value. with our average stock trades less than 250,000 per day Feltang would be exposed to market drop if they tried to sell all 5,250,000 shares, their sale would depress market & have them paying tax on more than they receive.
The tax treaty between Feltang's nation of origin and the US would control exactly how the transaction is recorded and taxed, but stock issued as compensation for services to a US company is normally US income taxed in the US at US rates and terms.
One of the stocks I had invested in sold out in 2009, the vote to sell was made in august of 2008 with the final transaction closing in april of 2009, basically eight months later.
There is no reason a deal can't be made sometime during the year they can't trade effective the day after the year is up.
Nothing seems to move very fast in the oil business anyway.
Krom, just proof that incompetence can come in any color, as well as racism. Many of us here invested because of SEO, what does that make us, racist because we want to follow the lead of a sucessful Nigerian businessman? Oil comes in many colors & it all means money. I still have my shares because SEO does and I believe if I follow his lead I am going to get out of this investment with a lot more than I have put in. I believe SEO was smart enough to recognize the value of the JDZ and EEZ and those assets are going to be my retirement fund. I don't really care what color he is or any of our officers and directors, I just care that they end up making me money.
Ponzi, why would Feltang want to pay tax on a higher amount? If they wait till the price drops their taxable income from the transaction also goes down. Your logic is exactly the opposite of what they would do.
I do not anticipate anyone going public about the 5% - just accumulating the 5% as the price is right and shares are available at targeted price. Share volume hasn't been large enough for buyers to be pushing up price - I am thinking this is a long term plan & maybe why there asking for these extensions
Umbra, I have long had suspicion of something like you are suggesting. Even one buyer buying up 5% of the stock at .30 instead of $5.00 would save $169,670,000 ($10,830,000 vs $180,500,000)and there may be more than one buyer involved, several players could buy up to 5% each without reporting to the SEC and make room for SEO to get his price or stay on for the larger payout over development
I don't know about what Dan knows or does not know from ERHE about the well, but some of our more enterprising stockholders had the chinese translated by someone who is not a stockholder and they had the same translation. If the chinese is that far off maybe they ought to fire (or excicute) their PR department - the chinese version says the same thing.
Krom, we are currently working under a negotiated production sharing agreement on a oil mining lease. anything else would have to be negotiated. If the JDZ has the ability to make agreement on any other assets discovered I have no idea.
Pete, I don't have enough experiance with the situation to know, my comment was pure speculation
deadeyeca, if Total is involved they have two drill ships under long term lease that are finishing up at Akpo and are going to move to Egima. They could divert one or both to the JDZ for a month or two for phase 2
condor1, does it not also require consensus of the remaining % owners to move into the next stage (phase 2)? All going forward have to agree to what ever is proposed for phase 2? Minimum requirements are 16,000,000 - if SNP wants to force someone(s) out they could they propose a larger phase 2 program - making some of the players risking more than they either have or want to put on the line for this project?
First of all the JDZ is not under Nigerian law, its goverend by its own treaty between Nigeria and STP.
Second, we are in 1600+ meters of water, no jack up rig has legs that long
The bashers are back!
Mike, my understanding is it takes more than one well to "prove" a oil/gas/condensate estimate. I had heard three wells but my information may be out of date, new technology being put into use all the time.
An extension of phase 1 could be negotiated without giving up any acreage as phase 2 requires. The companies could then use the information discovered in phase 1 extension to better choose which acreage they want to release & maybe even propose on themselves. Also the information released whould determine how attractive the released acreage is to any other developer, they could also be negotiating haw the released acreage would be released, you may not want certain developers to set up camp along side your discoveries.
If I had a suitcase with a million in it I would be carring it, with both hands tight around the handle. For SEO it just walking around money
does anyone know for sure that Colorado, our state of incorporation is a cumulative voting state?
Maybe this is why ERHE is looking at issuing more stock in that shelf registration?
If the company was already in a quiet period regarding an acquisition by someone, would it preclude DK making any kind of press release wheather or not SNP made an anouncement on its web site?
Here's a strech, could the six months be needed to get a drill ship scheduled to drill the next set of wells? Maybe their own chinese drillship will be available within the time frame for phase 2 with the six month extension.
My "feelings" no fact or inside knowledge is that SNP is planning on our block 4 & 11 (and maybe EEL's block 5 & 12) for their intrest in the EEZ. We haven't been told about our "experts" who helped pick our EEZ blocks, I am suspecious that they are all named chin or chang (chinese for smith & jones)
The drilling program was established before the buyout and would have been based on Addax's prior budget, not anything SNP changed
Can anyone confirm or deny the following. My understanding is that block 5& 6 could be awarded to another developer (85% of them not ours) because they have been awarded before and the developer reniged on their bid? Our 15% is still in arbitration.
IMHO, he was talking about the geology. The JDZ is the edge of the delta outthrust into the GOG, the eez does not contain the same formations as hydrocarbon traps, again my opinion
He also did not say they would release the info to the public then, he said it was due, maybe to the JDZ first.
Farrell, my belief is that phase two minimum commitment is $16,000,000 per block. They don't have to drill another well they can spend the money on additional siesmic etc.
The commitment can also be met by paying JDZ the $16,000,000. This is why I think the phase two committment is so important, if they make the minimum commitment they are just holding the real estate and have not decided what to do with it or weather it is commercial. We will see next month hopefully.
Korn, I don't believe the JDZ results will be that inportant to the EEZ bidders. Someone with a lot more geography knowledge than mine needs to comment on this but the JDZ structure is part of the delta shelf thrusting out into the Gulf. that structure ends at the edge of the nine JDZ blocks we are in. The test wells that Addax/SNP drilled are shallow and I do not believe the information recovered from their drilling will tell the bidders much if anything about the area & formations.
Someone who knows the drilling game and geology tell me if I am right or in left field.
IMHO
Everything with the SEC has a deadline, I think they just filled because they had to by a certain date
Both filings were for 4/27/10 filled on 8/10, I wopuld say the companies law firm prepared these to be sure the two new directors met the SEC filling timeline. Peter had surly filled before as a officer , it will be interesting to see if he refiles as a director.
There are several things I see as having to be settled before any buyout will occur, these are not in any order of importance/time frame, just things IMHO will have to be settled before buyers and sellers can reach a common agreed to price.
1) settlement of block 5 & 6
2) reacquisition/purchase of Offors 8% security shares
3) determination of EEZ 15% block
4) determination of EEZ 100% operator partners
5) release of phase one drilling results, and
6) commitment to phase 2 drilling for block 2, 3 & 4
Steel, I think you are right about results. Addax had and still has a commitment to drill a well in a block close to the jdz, I think I remember this summer, which is close to over. They had a contract for a minimum of 120 days for four wells. That other block could have gotten the fourth well. The JDZ commitment was for two wells in block four and an optioal third well, I have never found out what caused the optional well to be drilled or not drilled. The positioning of Oka East meant they had drilled all accross the four blocks and should have plenty of geology to try and map/analyse. All this is just my opinion, but I am expecting phase 2. Phase 2 can be completed with a 16 mil per block commitment to something like additional seismic or engineering, so the actual commitment to phase 2, minimum or substantial will tell the actual expectation from SNP.
One company I deal with was not able to get all the goods they ordered last year this summer because the shortages in china had the manufacturer shut down part of winter and having trouble getting all the raw material they needed for production (oil based resin).
The company ended up getting 3/4 of their order but all of it was pushed back at least three weeks and materials are time sensitive, goods are related to growing crops and are not useful after a certain point in the growing season.
I think this is a indication of how much China needs moe oil/gas.
Someone posted earlier that 2d seismic can be reprocessed as 3d. How complicated/expensive is this process and is it worth the money. Is the reprocessed data as reliable as new 3d or at least close. Anyone form the oil industry care to comment?