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ERHC Energy Inc. Updates Shareholders on Progress
HOUSTON, March 15, 2012 – ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued the following update on Company activities from Peter Ntephe, chief executive officer.
To ERHC Shareholders:
I am pleased to update the investment community and other interested parties on ERHC Energy Inc.
São Tomé and Príncipe Exclusive Economic Zone (EEZ)
I am happy to report that ERHC and the National Petroleum Agency of São Tomé and Príncipe (ANP-STP) continue to make meaningful progress on the most critical terms of the Production Sharing Contracts (PSCs) for the Company’s two exploration Blocks in the EEZ. We participated in an intensive two-day face-to-face round of PSC negotiations with the ANP-STP in São Tomé at the end of February in respect of ERHC’s 100 percent working interests in EEZ Blocks 4 and 11.
While there, ERHC representatives had the opportunity to be part of the crowd at the Estádio Nacional 12 de Julho that watched the São Tomé and Príncipe National Soccer Team win 2-1 in their African Cup of Nations qualifier against Sierra Leone. It was a good opportunity for ERHC to visibly identify with its host community and firm up social relations. Many congratulations to the São Tomé and Príncipe team whose results in this round of qualifiers have been impressive.
Joint Development Zone (JDZ)
The one-year extension of Exploration Phase 1 in JDZ Blocks 2, 3 and 4 expired this week. The contracting parties and the Joint Development Authority have been meeting to determine the way forward. When final resolutions are reached and formalized, ERHC will inform shareholders.
Earlier this year, we explained the following three potential courses of action:
1. The operators and the Joint Development Authority (JDZ) that oversees the JDZ could agree upon a plan for future exploration of one or more of the JDZ Blocks with specific proposed work plans, timelines and budgets.
2. The operators and the JDA could agree upon a further extension of Exploration Phase 1. Similarly, they could agree to proceed with exploration, but subject to further studies and with no specific work plan or timeline of when such exploration would commence.
3. The operators could decide not to pursue future exploration of the JDZ Blocks. If this were to occur, ERHC would be able to seek new operating partners for the JDZ Blocks.
ERHC management continues to work closely with all interested parties to advance the interests of the Company and shareholders in these matters.
Meanwhile we have learned from officials with Total of their plans to commence drilling in JDZ Block 1 before the end of March. Last year, Total announced it would invest $200 million in drilling two wells in JDZ Block 1 this spring. Even though ERHC does not have interests in JDZ Block 1, having an experienced and respected major such as Total actively drilling in the region reflects positively on the JDZ as a whole.
Chad
ERHC's preparations for the commencement of its oil and gas exploration work program for the Chari-Ouest III, BDS 2008 and Manga blocks is continuing to gather steam. Last week, our request for expressions of interest for conducting environmental impact assessment (EIA) for the work program was advertised internationally, including, notably, in Upstream, the international industry newspaper. More information is available by visiting http://erhc.com/news/environmental-impact-assessement-in-chad/.
ERHC is also seeking expressions of interest from qualified contracting companies to conduct seismic work and gravity and magnetic studies, which will be the focus of the first 18 months of the work program.
Additional Technical Expertise
In the past few days, Mr. Martin Wensrich has joined ERHC's technical team. Mr. Wensrich is an experienced geoscientist and a proven oil finder with over 36 years in the industry. Mr. Wensrich's skills and experience will be applied to the Chad exploration program in particular.
In recent months, we have rapidly grown ERHC's executive technical team with the addition of several highly qualified and experienced technical professionals. This is an important aspect of ERHC's announced strategy of transforming itself from an offshore-focused, non-operating company to a company with both onshore and offshore assets, some of which it operates in its own right.
Annual Meeting of Shareholders
ERHC has filed the Proxy Statement for the Annual Meeting of Shareholders, which will take place at 3:00 p.m. on Thursday, April 26, 2012. The date of the meeting was changed from April 24, 2012 which we earlier announced to the new date of April 26, 2012 for more cost-efficient logistics. The meeting will be held at The Renaissance Houston Hotel, 6 Greenway Plaza East, in Houston, Texas. The Proxy Statement is posted at http://www.sec.gov/Archives/edgar/data/799235/000114036112015211/formdef14a.htm.
Shareholders of record of shares of ERHC Common Stock as of the close of business on March 26, 2012, are entitled to participate in and vote at the meeting. Agenda items include the election of five Directors, the ratification of MaloneBailey, LLP as the Company’s independent accountants for the 2012 fiscal year and other matters that may properly come before the meeting. We hope you are able to join us and look forward to greeting as many shareholders as possible in person.
Thank you all for your continued interest in ERHC and your trust.
If you have questions, please ask the Company directly through its investor relations representative, Dan Keeney ( 214.432.7556 or dan@dpkpr.com).
Sincerely,
Peter Ntephe
Chief Executive Officer
http://erhc.com/news/erhc-updates-shareholders/
It is very sad to hear that
balance_builder passed away. His extensive research on this investment was indeed impressive and his analysis was always thought-provoking. He will be missed.
Appreciate this and many other DD's of yours.
Does anyone know SEO's cost basis in this stock?
Thanks.
we have no such transactions currently in place...
Wife: "Are you buying that stock again?"
Husband: "No, I have no such transactions currently in place."
(Maybe next Monday...)
When you find time, could you please elaborate more on
"(yes I included Chevron)"? Much appreciated.
That would be great,
assuming a positive PR from Sinopec or JDZ.
Krom, since most investors will not be attending, I guess that there would be a PR issued on that day if the company had something new to say.
"It will be done in a venue for ALL investors at the same time."
IMO
You may want to talk to the retirement specialists of your brokerage firm. They are more than willing (I think) to assist you.
Krom, the loophole here is that one contributes to Regular IRA (if allowed) and then converts the money from Regular IRA to Roth.
This loophole stands until Congress eliminates it.
IMO
BTW, I'm not a CPA.
He is talking about direct contribution to Roth, which has its income limits, instead of conversion from regular IRA to Roth, which, as you indicated, has its income limits removed this year. IMO
MM CHDN (Chardan Capital Markets) has bid/ask close to the current stock price. It is headquarted in New York and has offices in other locations, including Beijing. A list of titles on its leadership web page includes Managing Director and Group Head of China.
http://www.chardancm.com/our-firm/leadership
FWIW.
Not much to add, except this old article (dated Jun 25, 2009)
on Addax buyout by Sinopec, FWIW:
http://www.reuters.com/article/idAFLP88943820090625?rpc=44
"China must ensure Sinopec proves Addax really is worth what the oil group is paying for it. Failure to do so will cost both company and state considerably more in the long run."
That possibility is a worry.
"Could it be that the Chinese "Don't want to Lose Face" over their $ 8 Billion investment in Addax?"
I think it is the link:
http://www.philnugentglobal.com/bio.php
Oil rigs leaving Gulf of Mexico over drill ban
Posted Wed June 9, 2010 6:37 pm PDT
NEW ORLEANS, Louisiana (AFP) - A Louisiana official said oil firms have begun pulling rigs out of the Gulf of Mexico since US President Barack Obama declared a six-month halt to deepwater drilling after an accident prompted the worst oil spill in US history.
"Already, three rigs have left or are in the process of leaving the Gulf of Mexico," Chett Chiasson, executive director of the port commission for the town of Port Fourchon, which services 90 percent of deepwater activity in the Gulf, told AFP.
"If this moratorium goes for six months, these rig operators and these oil companies will have no choice but to go somewhere else," with a devastating impact on jobs and the economy of Louisiana and the rest of the United States, said Chiasson.
A spokesman for Anadarko Petroleum Corporation, which leased and operated the three rigs, said the company had "notified three of our rig contractors that we were terminating our contract because with a six-month moratorium on exploration and appraisal drilling in the Gulf, there's no work for those rigs."
But he was unable to confirm that the rigs, which belong to three separate companies, were being physically removed from the Gulf of Mexico.
Obama extended the moratorium on deepwater drilling to give a presidential commission time to investigate what caused the April accident on a BP-leased rig that claimed the lives of 11 workers and fouled the sea and sensitive coastal areas with tens of millions of gallons of oil.
Last week BP placed a containment device over the blown out well, located 50 miles (80 kilometers) off Louisiana, and said it is capturing almost 630,000 gallons of oil a day. But large amounts of oil are still pouring into the Gulf.
All 33 rigs that are affected by the moratorium are serviced out of Port Fourchon.
In a survey conducted by the port commission, companies in Port Fourchon said the drilling moratorium could force them to lay off 50 to 60 percent of their staff, or more than 4,000 people, said Chiasson.
The moratorium comes on top of a severely curtailed fishing and shrimping season in Louisiana.
According to Chiasson, two-thirds of households in southern Louisiana work in the oil industry and the other third works in fishing.
The shutdown of the two key industries for most of this year would have "a cascading effect" on the region and would result in heavy job losses in Louisiana and around the United States, warned Chiasson.
http://green.yahoo.com/news/afp/20100610/ts_alt_afp/usoilpollutionenvironmentrigs.html
Looking at "Post-AIM Corporate Structure" (Slide 39), I surmise that post-AIM
- all assets, including the cash in the non-interest-bearing account, will move the ERHC plc;
- management team and board directors will move to ERHC plc;
- payroll or other administrative expenses will be assumed by ERHC plc; and
- ERHC Inc. becomes an investment holding company whose assets are 123M shares of ERHC plc. (I am using the presentation example that ERHC Inc. currently has 723M shares outstanding, out of which 600M shares will be converted to ERHC plc.)
http://www.erhc.com/attachments/articles/136/AGM%20Presentation%202010_04_27.pdf
I will probably stay with OTCBB. However, I have some concerns about OTCBB shares.
I have no idea how expensive or inexpensive it is to run ERHC Inc. as a holding company of 123M shares of ERHC plc. As long as ERHC Inc. has its own expenses, the OTCBB shares will likely trade lower than AIM shares structurally. And where does ERHC Inc. get its funding?
I don't know how the 123M shares held by ERHC Inc. are going to vote in an annual meeting of ERHC plc. Will shareholders of ERHC Inc. still be able to vote their individual shares, or will ERHC Inc. vote one single 'yes' or 'no' on behalf of all 123M shares?
I'd appreciate any thought.
All or none?
Thanks, midtier, for your effort and sharing.
"PM Branco seemed to come off as being very humble and sincere. He also seemed appreciative of anyone willing to help his country."
Let us hope that STP will serve as a good model for how the oil money can truly benefit the people.
That's a very informative article to read about Akpo. Thank you, farrell.
Why don't you find it out?
Hypothetically, an Addax/Sinopec employee who is not a Chinese citizen can get arrested and charged for leaking information if he or she steps on the soil of China.
In the following news item, the Rio Tinto employee, born in China but now a naturalized Australian citizen, was sentenced to 10 years in China. Fortunately for him, it was not life sentence or death penalty.
http://www.bbc.co.uk/blogs/thereporters/nickbryant/2010/03/stern_hu_the_australian_reacti.html
I don't know exactly what the employee did in the Rio Tinto case; however, the severe sentence serves a warning for sure.
A while ago, Southern Man on the other board mentioned the possibility of death or life sentence for leaking information. He might be onto something.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47004340
You mean my possibility (1)?
What would be the purpose of doing more data analysis at this stage?
From DK, "Bottom line: The data analysis is not complete. It is still being conducted." (Thanks, retep0517)
Possibilities:
(1) There is no confidence in the quality of the data analyses performed so far, whether they are good or bad. (A reflection on the expertise of Sinopec-Addax or the geological dynamics of the area?)
(2) The results obtained so far have shown a borderline case, hence necessitating another round of analysis.
(3) There is more data coming from other sources. (CVX or Total?)
(4) The so-called "data analysis" is conducted in the board room, not really on the technical level. (Parties are negotiating now?)
(5) ....
IMO.
Well, I was expecting JCG but I guess LB will do...
"From 1998 he was with the Addax Petroleum Corporation where he held several senior management positions including Managing Director, Middle East (based in Dubai), General Manager, Taq Taq Operating Company (based in Kurdistan, Iraq), and Executive Director Business Development (based in Nigeria). Mr. Blair played a big part in building Addax Petroleum into the largest independent oil company in Nigeria with production rising from 8,000 bopd to over 120,000 bopd in ten years. He was also instrumental in Addax Petroleum’s acquisition of interests in the Nigeria-Sao Tome and Principe Joint Development Zone as well as other interests in OPL 291 and the Okwok Field in Nigeria."
Thanks.
Brez, that would be great!
Total, where are you?
The original purchase date applies in this case.
On China's Buying Power - a Korean View
"The purchase of Switzerland-based oil producer Addax Petroleum Corp. by Sinopec Corp., China’s second-largest oil company, illustrates how far ahead China is in the resource battle. Sinopec outbid the Korea National Oil Corp., offering $7.24 billion in June 2009, even though the KNOC initiated the bidding process. It was a crushing defeat for Korea."
"China is willing to pay double, even triple, what Korea is willing to pay to get natural resources."
"China was easily offering billions of dollars, while we only suggested hundreds of millions maximum. We were simply no competition for China."
http://joongangdaily.joins.com/article/view.asp?aid=2917595
Enjoy reading your post, bsk. I thank you, those you named in your post, and others who share their DD's (news, info, analysis, or industry know-how) with the board.
Besides, the Upstream article was likely in production already when DJ news hit. IMO
Thanks for the reply, tryoty.
Are you still in favor of ERHC taking the growth strategy, by the way?
kingpindg and Mark, thank both of you. It's great.
Thanks for the link. I can see NITE being active there.
Maybe the three can form a consortium.
The report was published by The Economist Intelligence Unit (EIU).
This is the website of EIU:
http://www.eiu.com/
This is EIU's media directory:
http://www.eiuresources.com/mediadir/default.asp
This is the profile of the regional director, Africa:
http://www.eiuresources.com/mediadir/default.asp?Criteria=FullName&Locator=WORLD&SearchTerm=%20&TopName=Pratibha%20Thaker
Krombacher, thank you.
Is this bsk's way to add credibility to some of the recent posts?
"My heartfelt thanks go out to Fishdog, Kobiashi, Balance Builder and Markgovols. Over the years your wisdom, forward thinking and hard work have been very appreciated."
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47163186
Thanks, bsk. Your insight is appreciated.
Nice! Thanks, Krombacher.
I'd perfer the original uptick rule. IMO, a circuit break that takes place after 10% drop in price is not going to help, unfortunately.
Thanks, CobraJet, for the news.