1) Greed
2) Greed
3) The prospect of Nigeria 'annexing' Sao Tome becomes quite real. It is, after all, a 60/40 split, and the minority patner is beginning to be a pain in the arse. The consequences are to scary to contemplate. Hopefully, this is show-boating by STP, but the vested interets hav ea lot of baksheesh

Doug Quaid (sp?)..you out there?

So, Monday trading. Any guesses?

Mine are 76c open, low 68c, close 78c (the high)

Based on bugger-all I might add

I hope markgovols will come back and post. His info has been superb. Meridian clearly is seeing the grumbly side of the negotiations, whilst mark is getting the (mainly) Nigerian POV.

This board is superb. If we all go down in flames, it won't be because we hadn't done the DD

GLTA

stun

M may be up to his 15 post limit (I looked on his ID at Ihub)

Whatever, as they say


Just teaching the kid how to use Limewire. Fabulous, though it is 2am

Two things spring to mind

1) Same old story....STP cutting their noses off to spite their faces. MUCH poorer than its wealthy partner, much more open to persuasion by large US oil interests

2) Meridian has had a great call on this. Though mark clearly has a route in, it's definitely the Nigerian side of the equation. Only M has put forward the possibility that STP is f*$%ing the dog, as they say in Montreal

3) Sorry, not supposed to be 3 ;>). I have to believe this is going to get sorted out. The veiled threat of 'do it or lose it' may persuade STP to become less belligerent. Talk about power-crazed new-found wealth!! They won't get it though unless they obey by the rules

Longest I've been, having almost doubled up from 40c-ish cost base up at these levels. Staying that way. EO must be pissed.

stun

Hi, I'm here. Nothing on Reuters before I left work a few hours back. Factiva was down earlier....I'll log in from home now

EDIT Oh, I've seen the rest of the thread and the article now

Well, I was tempted by the 65c mark today, but refrained. Silly really, as I did it a couple of weeks back when the 50c wall was in place and bought (more) back at 38c (missed the lows bigtime, as usual). And bought more at 41.5c because the info here appears to be so good.

Thanks to all the great posters here. Longest I've been of the stock, now averaged at about 42c + some earlier trading profits. Scary for what is still an irregular OTCBB stock. Not all in like some, but nevertheless 10pc of my portfolio - I'm sure I swore never to do that with OTC stocks!!!

That's the one. All the articles from this publication have been dismissive of ERHC. I can only think that if they weren't, the likes of XOM etc would be less willing to a) give them information, b) advertise with them and c) subscribe to their magazine/website.

stun

New Energy Intelligence (???) Group article

ERHC suffers another blow offshore Sao Tome
311 words
10 February 2006
Energy Compass
English
(c) 2006 Energy Intelligence Group. All rights reserved
ERHC Energy suffered another desertion in Nigeria's joint development zone (JDZ) with Sao Tome and Principe this week when Pioneer Natural Resources turned its back on the Nigerian-owned firm. Pioneer, which was earmarked to operate a joint 65% stake with ERHC in Block 2 and a 20% stake in Block 3, is the third US company to abandon ERHC, which has few assets bar its rights to the JDZ. In November, Noble Energy pulled out of a joint 60% stake on Block 4 after Devon Energy -- a one-time cobidder with interests in Blocks 2 and 3 -- exited in July.

Pioneer gave no reason, but signs are that the burden of carrying US-listed ERHC and several Nigerian freeloaders put too big a strain on negotiations over joint operating agreements. ERHC put a positive spin on the affair, boasting that China's Sinopec was ready to sign up for Block 2. It has brought Addax, a Swiss company with strong Nigerian connections, in to replace Noble in Block 4. Sao Tome argues that the blocks should first be reoffered to original high bidders like Anadarko.

ERHC hopes to finalize joint operating agreements with new partners by the end of February and sign production-sharing contracts with the joint development authority soon after, although the negotiating process could yet unravel. The company is highly unpopular in Sao Tome, where politicians say Nigeria forced them to sign a highly advantageous deal with ERHC at their expense (EC Oct.25'02,p4).

But the Nigerians aren't finding things easy, either. ERHC's owner, Emeka Offor, has seen his bank, African Express, closed after failing to meet recapitalization targets, while sources say the collapse of Nigeria's Hallmark Bank has swallowed up the country's share of signature bonuses from the first JDZ round.

>commission on non-hydrocarbon resources<

er...seawater, sand. some rock. fishies (number to be determined if they'll stay still for long enough).

er, that's it

Just a really slow start by the looks of it. Thanks

GLTA
stun

Is AMTD feed down? 11,250 shares traded, last trade 9:30:49?


EDIT nope, 7k trade down at 0.47, leaves .46-.47

UPDATE 2-Pioneer withdraws from Nigeria/Sao Tome oil zone
By Ben Berkowitz and Estelle Shirbon
650 words
7 February 2006
14:15
Reuters News
English
(c) 2006 Reuters Limited
(Recasts, adds comments from Nigerian minister of state for petroleum)

NEW YORK/ABUJA, Feb 7 (Reuters) - Pioneer Natural Resources Co. is exiting two exploration blocks in Africa's Gulf of Guinea after failing to agree to terms with its local partner, the U.S. oil independent said on Tuesday.

Pioneer's withdrawal from partnership with ERHC was the latest blow to an oil exploration licensing round conducted last May by the Joint Development Authority of Nigeria and Sao Tome, which has yet to see any contracts signed.

"It had to do with an inability to negotiate an acceptable agreement with our partner," said a Pioneer spokeswoman.

ERHC President and CEO Walter Brandhuber said Pioneer was "unable to meet the timeline set for executing the various agreements" with the Joint Development Authority (JDA).

Brandhuber, who is in Nigeria, told Reuters ERHC had a new partner lined up for block 2, in which it and Pioneer had a 65 percent stake and were the operators. He said he could not yet identify that partner.

An industry source familiar with the Joint Development Authority said China's Sinopec Corp. was aiming to replace Pioneer but this had not yet been approved.

Nigeria's Minister of State for Petroleum Edmund Daukoru declined to comment on Sinopec, but told Reuters he expected an "equally credible" partner to replace Pioneer.

The licensing round was repeatedly delayed before the blocks were finally awarded. Negotiation of the contracts has also been delayed, with companies pulling out, allegations of bribery and wrangling between partners bogging it down.

The Gulf of Guinea, where the joint development zone is located, is a prime exploration hotspot but political tensions in Sao Tome and Principe have risen as the tiny twin island nation prepares to enter the world of big oil.

CONTRACTS TO BE SIGNED

Daukoru, speaking just after a meeting with his counterpart from Sao Tome and other ministers, said the JDA would sign production sharing contracts on all blocks awarded last May at the end of this month, with the possible exception of block 2.

He said it would be "a little tricky" to meet the timeline for that block in light of Pioneer's withdrawal, but he was confident ERHC and a new partner would sign a contract soon.

Pioneer is the second company to pull out of a partnership with ERHC in block 2. Devon ducked out last year. In block 4, ERHC also lost its initial partner when Noble Energy withdrew and was replaced by Swiss-based Addax Petroleum.

ERHC, listed in the United States but controlled by private Nigerian firm Chrome, has sparked controversy in Nigeria and Sao Tome since it emerged as the big winner of the licensing round despite having little exploration experience.

It was the only company to gain stakes in all five blocks awarded last May. It was named operator, along with other companies, in two of the blocks.

The authority says ERHC had been granted preferential rights on stakes in the blocks in return for exploration investment in Sao Tome in the 1990s, before the joint development zone was set up. Details of those investments have not been made public.

Late last year, the Sao Tome attorney-general said there were indications that ERHC made improper payments to Sao Tome officials. The company has denied any wrongdoing.

Daukoru said the Sao Tome ministers had disowned the attorney-general's report during Tuesday's meeting.

"It's internal politics. We are preparing a detailed response (to the report) which will be in the public domain. Our first inclination was to ignore it completely but we don't want our silence to be interpreted the wrong way," he said.

8 February 2006
International Oil Daily
English
(c) 2006 Energy Intelligence Group Inc. All rights reserved.
US independent Pioneer Natural Resources said Tuesday it was pulling out of the Nigeria-Sao Tome Joint Development Authority's Blocks 2 and 3.

Pioneer was awarded a 65% stake in Block 2 in early June 2005, through a partnership with Devon Energy and Nigerian-owned, US-listed ERHC Energy.

Pioneer becomes the third US independent -- after Noble Energy and Devon -- to bow out of the much-delayed negotiation process for awards in the Joint Development Zone.

"It had to do with an inability to negotiate an acceptable agreement with our partner," a Pioneer spokeswoman told Reuters.

Devon, which was awarded 25% of Block 3, pulled out in July 2005, as did Noble Energy, which bid with ERHC for 60% and operatorship of Block 4. The two were said to have backed off at the prospect of carrying other small firms owned by influential Nigerians, amid concerns about the risk to their reputation.

ERHC, which has interests in Blocks 2, 3, 4, 5 and 6, is thought to be seeking to appoint China's Sinopec as Pioneer's replacement. ERHC declined to comment Tuesday.

Sao Tome officials have already opposed ERHC's decision to appoint Swiss Addax in Noble's place. They are thought to prefer Anadarko, the original high bidder, which ended up being pushed out of Block 4 into Block 3.

Sinopec

ADR (One ADR represents 100 'H' shares)

O/S 167.80m
Price $60.17

Market cap: $54.5bn

Maybe PXD's $6.5bn market cap just wasn't big enough :<)

Or ONGC

Pioneer Subsidiary Abandons Gulf Of Guinea Drilling Talks
215 words
7 February 2006
15:52
Dow Jones International News
English
(c) 2006 Dow Jones & Company, Inc.
LONDON (Dow Jones)--U.S. energy firm Pioneer Natural Resources Co. (PXD) said Tuesday its subsidiary has abandoned negotiations for drilling rights in the Gulf of Guinea in two blocks jointly owned by Sao Tome and Principe and Nigeria.

A company spokesman said Pioneer Resources Africa Limited couldn't reach a deal with authorities to drill in Blocks 2 and 3.

The Dallas, Texas-based company had no plans to reenter negotiations with authorities under current negotiating plans, the spokesman said.

The proposed drilling area is located in the Joint Development Zone, or JDZ, in between Nigeria, Africa's biggest oil producer, and Sao Tome and Principe, Nigeria's island neighbor.

Many Western oil companies hope to procure drilling rights in the JDZ. Some studies estimate the area could have around 10 billion barrels of crude oil.

Chevron Corp. (CVX) last month began exploration drilling in the deepwater Block 1, located in 5,700 feet of water. Chevron is the operator of the block with a 51% share of the block, while ExxonMobil (XOM) has a 40% interest and Norwegian firm Equity Energy Resources the remaining 9%.

-By Spencer Swartz, Dow Jones Newswires; +44 207 842 9357; spencer.swartz@dowjones.com [ 07-02-06 1552GMT ]

Smith Barney (Saloman) now agressively on the offer. Some high volume going through, too.

My only fear with all this is that there is some sort of massive dilutional aspect of this company that doesn't show properly in the filings. The amount of stock for sale at this stage (ARCA must have sold millions into this rally) is not reflective of what is beginning finally to look like an odds-on successful outcome.

The buyers at the current point could be many....investors, oil companies etc...but who the hell is selling? And in good size.

There have been some interesting share movements in the past, particularly with the Chrome involvement, and Offor's bank. It simply feels at the moment that there is a lot of stock for sale when the sp should be gapping up.

Not displeased at all, mind. Been in and out, current average price 42c

Fresh Reuters headline:

CHAD SAYS GETS TOO LITTLE FROM OIL ACCORD WITH EXXON MOBIL-LED CONSORTIUM, WANTS TO RENEGOTIATE

Current market is quoted 40-43 cents (Euros), 5k x 5k

That equates to 0.48 - 0.52 (US$)

Last trade was 05-Jan for 2,699 shares at 0.26 (Euros).

All according to Bloomberg

Must say that the same thoughts occurred to me. I also find it hard to believe that Memon voluntarily left and that there just happened to be a successor all primed and ready to go on the sidelines.

It must be difficult for a publication which relies so much on information from the oil majors to look objectively at minnow upstarts!

Not wishing to bring politics into it, but obviously security of supply is quite a theme in the US now. Do people believe that the US Govt might intervene against ERHE in favour of large multi-nationals, or am I having illusions of whisper-quiet black helicopters again?

Soap opera continues in Sao Tome bid round
337 words
27 January 2006
Energy Compass
English
(c) 2006 Energy Intelligence Group. All rights reserved
A fresh chapter opened last week in the saga over awards in the joint development zone between Nigeria and Sao Tome and Principe, when ERHC Energy (EE), the controversial company with rights to stakes in several blocks, lost its president. Sources say Ali Memon left of his own accord after 16 months, worn out by the tussles that have paralyzed progress towards joint operating agreements and production sharing contracts.

Nigerian-owned, US-listed EE has interests in Blocks 2, 3, 4, 5 and 6. These include equity conferred by a controversial agreement between Sao Tome and Environmental Remediation Holding Co. (ERHC) -- EE's previous incarnation -- as well as equity gained through joint bids with partners (EC Oct.7,p4). The company has since lost two US partners. Devon Energy, which bid with EE and Pioneer for 65% of Block 2 and 25% of Block 3, pulled out last year, as did Noble Energy, which bid with EE for 60% and operatorship of Block 4. The duo were initially resigned to carrying EE, but quailed at the prospect of carrying other small firms owned by influential Nigerians and became concerned about reputational risk (EC Nov.4,p9).

Sao Tome officials also oppose EE's recent decision to appoint Swiss Addax in Noble's place. They are thought to prefer Anadarko, the original high bidder, which ended up being pushed out of Block 4 into Block 3 under Nigerian pressure in post-bid machinations.

A suit brought by a former Romanian partner could prove a further nail in EE's coffin. Retrom is suing Chrome Oil Services, another company belonging to EE's owner, Chief Emeka Offor, for almost $1.4 million. Retrom accuses Chrome of failing to pay for services in managing turnaround and maintenance at Nigeria's Port Harcourt refinery. After a Paris arbitration court recommended that Chrome and its partners pay Retrom $880,000 plus interest, the Romanians took the case to the high court in Lagos.

Document EGYCMP0020060127e21r0000f

Reuters. Also Factiva, a search site run by DJ Reuters which has access to a very large number of publications.

115 words
25 January 2006
22:10
Platts Commodity News
English
Copyright 2006. Platts. All Rights Reserved.
Houston-based ERHC Energy, a Nigerian-controlled minnow with large but controversial interests in the Nigerian-Sao Tome Joint Development Zone, disclosed Wednesday that CEO Ali Memon resigned Jan 20 "by mutual consent" to "spend more time with his family and to pursue other interests." Memom is succeeded as CEO and director by Walter Brandhuber, 51, who since 2003 has been a senior consultant at CRA International in London. From 1999 to 2003, Brandhuber was managing director and board member at Anglo-Dutch Odin Petroleum and was a director of Calverton Ltd. From 1989 to 1998 Brandhuber was at Union Texas Petroleum, reaching vice-president.

Story

>spend more time with his family< LOL, media-speak for 'shown the door'

I resemble that remark

(as a journalist, that is)

24 January 2006
Emerging Markets Daily News
English
© Copyright 2006 Business Monitor International.
The fate of production sharing contracts (PSCs) for five offshore blocks in the Nigerian-Sao Tomean Joint Development Zone (JDZ) is still up in the air, as the signing meeting is yet again postponed, this time to mid-February according to news reports. The PSCs were supposed to have been inked last year, but were delayed due to allegations of irregularities and possible bribes paid by a competing oil company to Sao Tome officials. In addition, the president of the tiny groups of islands claimed earlier this month that the Sao Tome stood to lose close to US$60mn from the deals.

These developments have dismayed observers, who hoped the country would break Africa’s so-called “oil curse” – which plagues neighbouring energy-rich, yet corrupt and still poverty-stricken countries such as Nigeria, Gabon and Equatorial Guinea – and fulfil its reserves potential. The offshore maritime JDZ, shared by Nigeria and Sao Tome on a 60:40 basis in favour of Nigeria, consists of 23 blocks in the Gulf of Guinea that are believed to hold 6-14bn barrels of oil reserves. The area has significant potential as West African oil exports meet around 12% of US crude demand, a figure which the US government expects to rise to 20% by 2010 and 25% by 2015. Just last week, US oil majors US Chevron and ExxonMobil as well as a Norwegian firm kicked off exploration activities in a deepwater block within the zone, awarded in the first licensing round.

For now, though, it seems Nigeria may have bigger problems on its plate as the four foreign oil workers taken hostage almost a week ago in the strife-stricken Niger Delta remain in captivity and security officers narrowly avoided serious clashes with protestors at an oil production facility. The high-profile attacks on Shell and government oil facilities by Niger Delta separatists calling on international oil companies to leave the country have cut Nigeria’s, Africa’s largest oil producer, output by more than 200,000 barrels per day (b/d).

Emerging Markets Online

There is no public listing in Europe, the only IPO planned in Toronto. The Canadian stock code is still a number, reflecting 'pending listing' status.

The company is additionally referenced in Switzerland, Australia and the Netherlands, though is designated as a private company in all three

OK. Link in English!!

http://www.juristep.com/ingles/STP/PGR_Report_English.pdf

Only a summary I'm afraid, though there may be a link elsewhere.....

came across this whilst looking for the English version of the report. Apologies if it's been posted before:


http://www.revenuewatch.org/reports/pwyp011606.pdf

Revenue Watch is mentioned in the full report, along with the lawyer group 'we're really not all money-grabbing bast*rds you know'

These are all very valid questions. I must say that your history of posting anti- Joe Shea messages (I read his latest blog today for the first time, but have heard various things about it) doesn't fill me with joy.

Maybe we can come up with a list of questions.....I prefer the absence of references to the 'we'll do it anyway' section of the actual statement....

I'm in London, so it won't be asked of her till dawn your time...

S'cuse me, I have to go and kick Matt again. What do you mean I'm not grandfathered into IHub, I've been here since the year dot....

Hey Arsole (sorry for the dyslexia)

Just want to say two things:

Kudos to Joe Shea for the mutwadadi piece last night, spot on with the Nigerian dismissive fightback. Not always is information from that part of the world going to be reliable unless there is unanimous agreement from (obviously Nigeria in this case) all concerned - no STP pressure on this release!!!

I get Reuters at work (the proper one, not internet) and can privately message the author of the piece. Can you think of (polite) questions to ask...this can't be a rant; must be a sensible well-reasoned message phrased as a question. Arsole is not eligible to reply 0:)