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Sao Tome & Principe a oil rich country?
1 February 2010
In Sao Tome and Principe, the National Assembly (parliament) is required under the Oil Revenue Law to conduct yearly public plenary sessions to discuss general oil and gas policy.
Again, ministers, the auditor general and the oversight board answer questions from parliamentarians and discuss the activities of the oil fund.
For Ghana, this should take the early stage to enhance the oversight role of parliament in ensuring better oil wealth management. There should be no room for extensive secrecy provisions in the regulatory framework for the sector as far as the role of parliament remains effective.
Also, in Sao Tome and Principe, the Oil Revenue Law created a new independent oversight body, the Petroleum Oversight Commission which is made up of governmental and civil society members.
It is no wonder Sao Tome and Principe remains one, if not the first, of the corruption-free oil-rich countries apart from practical management revenues. It is very important that we follow suit. This would increase the awareness of what pertains in the sector including the commitment to transparency and checks and balances.
http://allafrica.com/stories/201002011494.html
Message gone by my hand.
Sao Tome: bidding for oil blocks in March
Another slant on news previously reported.
French to English translation
Sao Tome: bidding for oil blocks in March
SAO TOME - The first bidding for oil blocks in the exclusive area of Sao Tome and Principe will take place in March, it was learned Sunday.
"We will launch the first public competition for oil blocks in our exclusive economic zone, next March," said Prime Minister Joaquim Rafael Branco, the TV leaving the archipelago towards the Portugal on Saturday night.
Contacted by AFP Sunday, the executive director of the National Oil Agency (ANP) Luiz dos Prazeres said that 19 blocks would be offered to oil companies during the first week of March in London.
"Seismic studies conducted clearly indicate that there are large concentrations of hydrocarbons in these blocks. But companies may not know the actual amount of oil and make the distinction between gas and oil after drilling" , he said.
Impoverished archipelago, Sao Tome is one of the few countries in the Gulf of Guinea is rich in oil, have not yet tapped the black gold. Drilling conducted in 2003 and 2007 in oil blocks located in the joint economic zone with Nigeria, had not yielded the expected results.
This is the first time that Sao Tome has blocks of its exclusive economic zone. The outcome of the tender should be announced three months after their completion.
Sao Tome hoped to produce oil in 2011, but economic and diplomatic sources believe that its first barrels of crude are envisaged for 2014.
http://www.romandie.com/infos/news2/100207190717.xhfqg8gq.asp
Sao Tomé: appel d'offres pour les blocs de pétrole en mars
SAO TOMÉ - Le premier appel d'offres pour les blocs de pétrole de la zone exclusive de Sao Tomé et Principe aura lieu en mars, a-t-on appris dimanche.
"On va lancer le premier concours public de blocs de pétrole de notre zone économique exclusive, en mars prochain", a affirmé le Premier ministre Joaquim Rafael Branco, aux télévisions en quittant l'archipel en direction du Portugal samedi soir.
Joint par l'AFP dimanche, le directeur exécutif de l'Agence Nationale du Pétrole (ANP) Luiz dos Prazeres a expliqué que 19 blocs allaient être proposés aux compagnies pétrolières lors de la première semaine de mars à Londres.
"Les études sismiques effectuées nous indiquent clairement qu'il y a des grandes concentrations d'hydocarbures dans ces blocs. Mais, les compagnies ne pourront connaître la quantité effective d'hydrocarbures ainsi que faire le distinction entre gaz et pétrole qu'après des forages", a-t-il commenté.
Archipel très pauvre, Sao Tomé est un des rares pays du Golfe du Guinée, riche en pétrole, à ne pas avoir encore exploité l'or noir. Les forages réalisées en 2003 et 2007 dans des blocs de pétrole, situés dans la zone économique conjointe avec le Nigeria, n'avaient pas donné les résultats escomptés.
C'est la première fois que Sao Tomé propose des blocs de sa zone économique exclusive. Le résultat des appels d'offres devrait être annoncé trois mois après leur clôture.
Sao Tomé espérait produire du pétrole en 2011, mais des sources économiques et diplomatiques estiment que ses premiers barils de brut sont envisageables pour 2014.
(©AFP / 07 février 2010 20h07)
Bigger than Ghawar? Bigger than Obo 2 & 3?
I think the story went something like this. Scott Carpenter sat in the cockpit waiting to launch.
A number of problems ensued & after about twelve hours? the mission was scrubbed.
The reporters asked Scott what he was thinking about during the time he waited for launch.
Scott said he was thinking that everyting he was sitting in was built by the low bidder.
Thats the way I remember it.
jsc52003. Could you please direct me to the news release stating that SEO turned down a monetary amount for ERHE?
Thanks in advance.
Thanks for posting the news article.
With IEA Chief Economist Dr. Fatih Birol
reading the tea leaves the story is starting
to gain traction.
I am still wary of peak oil
news because their always seem to a hidden agenda.
I checked the short interest from time to time but it has been minimal so I didn't pay much attention to the numbers. Regarding MM's they do what they do to benefit themselves,imo.
Short interest also reported on the otcbb web site.
ERHE short interest is minimal. 70,756 shares short.
http://otcbb.com/asp/OTCE_Short_Interest.asp
Short interest data provided on Bloomberg web site.
http://www.bloomberg.com/apps/quote?ticker=erhe
Oil slick alert chatter..Oily penned notes regarding Obo 2 & Obo 3 in Block 1. Only Oily knows the details. Maybe Oily would like to revist Obo 2&3 block 1.
A Walter Mitty dream. Three billion plus without an oil slick? PSST. I have a bridge in Brooklyn for sale. Contact me for the details.
I agree with the smaller toe in the water. Seems pretty clear that Petrobras with the assistance of Sinopec want ERHC's interest in the EEZ. The EEZ is a bonus.
ERHC’s EEZ Interests
100% interest in up to two blocks of ERHC’s choice
Option for up to 15% paid working interest in two blocks of ERHC’s choice.
ERHC responsible for proportionate share of costs.
China Gains in Tangled Bidding at Iraq Oil Auction
ROBERTSON and ALISSA J. RUBIN
Published: June 30, 2009
BAGHDAD — The long-awaited auction of licenses to develop Iraq’s huge oil reserves began Tuesday amid unusual contentiousness, as multinational companies demanded far more revenue from every barrel of increased production than the authorities were willing to allow.
As Iraq Stabilizes, China Eyes Its Oil Fields (June 30, 2009)
Scores of Chinese, Russian, American and British oil executives, representing 8 of the world’s top 10 non-state oil companies, gathered in a hotel meeting room in the Green Zone. They listened closely on headphones to translations as bids for six oil fields and two natural gas fields were read out and then rushed into consultations.
In the latest indication of China’s aggressive interest, its three main oil companies all bid in partnerships with Western firms, and the first contract went to a pairing of BP and the China National Petroleum Corporation. That bid was for the largest field on offer: Rumaila, near the southern city of Basra. Once the bid is accepted by the oil minister, Hussain al-Shahristani, Parliament must issue final approval.
The auction is of huge economic importance to Iraq and carries major symbolic weight, too, coinciding with the formal American handover of urban security to Iraqi forces.
Iraq’s oil fields were nationalized under Saddam Hussein and were closed to foreigners for decades. The industry’s infrastructure crumbled under international sanctions imposed in the early 1990’s. The Bush administration had planned for Iraq to finance its post-invasion rebirth with oil revenues, but that idea failed in the face of technical problems and sabotage.
Some Iraqi officials at the auction said that political pressure, to avoid being perceived as giving away Iraq’s resources, might account for the government’s low offers, in some cases as much as $22 per barrel below the companies’ bids.
According to reporters watching the auction, the first round of bidding for the vast Rumaila field stalled when Exxon Mobil and a consortium of BP and the China National Petroleum Corp. both wanted more than the government’s offer of $2 for each barrel above a guaranteed minimum production level. Exxon said it would produce 3.1 million barrels daily with each additional barrel at a fee of $4.80, news reports said. The BP consortium, which eventually won, said it would produce 2.85 million barrels a day and originally wanted $3.99 per additional barrel.
There were no bids on Tuesday for the undeveloped Mansuriya gas field in violence-prone Diyala Province. A group led by ConocoPhillips bid for the Bai Hassan oil field in Kirkuk Province, but Mr. Shahristani said the offer did not meet the ministry’s minimum bid requirements. With companies refusing to come down to the Iraqi government’s maximum remuneration fees, there were no deals on the West Qurna, Missan, Kirkuk, Bai Hassan and Zubair oil fields, nor on the Akkas natural gas field.
Last week, Sinopec, China’s refining giant, offered $7.22 billion to buy Addax Petroleum, a Swiss-Canadian company with operations in the Kurdistan region of Iraq and in West Africa. If Addax’s shareholders and Canadian regulators approve the deal, which Addax’s board is recommending, it would be China’s largest overseas energy acquisition.
The Iraqi government originally tried last year to award oil fields to Western companies through a no-bid process. That prompted objections from a group of United States senators, who wanted greater transparency, and the plan was replaced with the auction, which had the effect of letting Chinese companies play a much larger role.
As the day drew to a close, companies were revisiting their bids to come up with final offers. The Ministry of Oil would turn these over to Iraq’s cabinet to consider.
Timothy Williams and Abeer Mohammed contributed reporting from Baghdad, and Keith Bradsher from Hong Kong..
http://www.nytimes.com/2009/07/01/business/global/01iraqoil.html?hp
UPDATE 5-China's Sinopec to buy Addax for $7.24 bln
Wed Jun 24, 2009 10:42pm
* Offer of C$52.80/shr is 16 pct premium to Addax close
* Deal gives Sinopec access to West Africa, Iraq fields
* Kurdish assets bring political risk
* Addax shares up 7.3 pct, Sinopec up 1.8 pct (Recasts throughout, adds Sinopec comment, share price)
CALGARY, Alberta, June 24 (Reuters) - Sinopec, China's largest oil refiner, agreed on Wednesday to buy Swiss oil explorer Addax Petroleum Corp (AXC.TO) for $7.24 billion in China's biggest overseas acquisition, as Beijing snaps up reserves to secure energy supplies to fuel its growing economy.
Addax brings high-potential oil blocks in West Africa and Iraq, risky areas where Western rivals are less keen to enter.
Sinopec International Petroleum Exploration and Production Corp's offer of C$52.80 per share, after it won a behind-the-scenes bidding war with Korea National Oil Co, is a 16 percent premium to Addax's Tuesday close and more than four times the stock's November low of C$12.13.
Analyst Gordon Kwan at Mirae Asset said the around C$8.27 billion offer was fair given prevailing oil prices CLc1 and the project risks.
"The Addax buy, if completed, is China's single largest oil acquisition in terms of deal value," he noted.
Addax shares rose 7.3 percent to C$48.96 on Wednesday on the Toronto Stock Exchange.
Shares in China Petroleum & Chemical (Sinopec) (0386.HK) (SNP.N) (600028.SS) opened 1.8 percent higher at HK$5.69 on Thursday, on hopes it could buy Addax assets after the deal to beef up its upstream resource base.
In a statement, Sinopec said the deal would "further enable it to achieve its strategic objective to build a stronger presence and operations in West Africa and Iraq, accelerating its international growth strategy."
Addax has grown quickly since its formation 15 years ago by Chief Executive Jean Claude Gandur. The Geneva-based, Toronto-listed company, named after an African antelope, averaged production of 136,500 barrels a day last year from 537 million barrels of reserves in onshore and offshore fields in West Africa and Iraq's Kurdistan region, including the promising Taq Taq field.
China's state-controlled Sinopec, PetroChina (601857.SS) and CNOOC Ltd (0883.HK), which enjoy access to low-cost loans from state-owned banks, have been have been bidding for reserves and supplies, often competing against Indian and other Asian rivals, in regions most Western oil companies are shying away from.
"There's very few parties in the world that are interested in taking Africa risk at this stage," said Dan Barclay, head of mergers and acquisitions, Canada, for BMO Capital Markets.
"It's really the guys like the Chinese and the Indians that are naturally buyers for that.
The deal comes amid a flurry of merger activity in recent weeks among oil exploration and production companies.
Heritage Oil (HOIL.L) has said it is in merger talks with Genel Energy International, a unit of Turkey's Cukurova Group [CUKRO.UL], and state-owned Emirates National Oil Co has said it is mulling a takeover of Dragon Oil (DGO.I). [ID:nL9405539] [ID:nL5151846]
Credit Suisse was financial adviser to Sinopec on the deal.
RISKY KURDISH ASSETS
One of Addax's key assets is its Kurdish blocks. Its fields, including Taq Taq, have the capacity to ramp up output sharply in the coming months and have considerable exploration potential.
However, analysts said political risks attached to the assets could prompt Sinopec to sell them on to another party.
Iraq's Kurdistan region consumes relatively little oil and, although Baghdad has recently allowed companies to export oil via state-owned pipelines, there is still no mechanism to allow the companies to be paid for their oil.
The Iraqi oil minister has described contracts such as those signed by Addax as illegal and ruled out paying firms for their oil until a long-stalled oil law is agreed.
Baghdad has also previously barred companies involved in the Kurdish region from bidding for contracts elsewhere in Iraq.
Sinopec is qualified to bid in Iraq's first oil licensing round, scheduled to start next week, as are CNOOC and China National Petroleum Corp (CNPC) [CNPET.UL].
The Sinopec deal involves a break-up fee of C$300 million. ($1=$1.15 Canadian) (Reporting by Scott Haggett, Tom Bergin, Pav Jordan, Victoria Bryan, Paul Sandle, Amitha Rajan, Alison Leung and Sui-Lee Wee; editing by Ian Geoghegan)
http://www.reuters.com/article/euMergersNews/idUSBNG47726120090625?pageNumber=1&virtualBrandChannel=11569
FWIW Technicals.
Composite Indicator
Trend Spotter TM Buy
Short Term Indicators
7 Day Average Directional Indicator Buy
10 - 8 Day Moving Average Hilo Channel Buy
20 Day Moving Average vs Price Buy
20 - 50 Day MACD Oscillator Buy
20 Day Bollinger Bands Hold
Short Term Indicators Average: 80% - Buy
20-Day Average Volume - 688270
Medium Term Indicators
40 Day Commodity Channel Index Buy
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Buy
Medium Term Indicators Average: 100% - Buy
50-Day Average Volume - 546240
Long Term Indicators
60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy
Long Term Indicators Average: 100% - Buy
100-Day Average Volume - 530755
Overall Average: 96% - Buy
Price Support Pivot Point Resistance
0.6300 0.5900 0.6300 0.6700
http://quote.barchart.com/texpert.asp?sym=ERHE
$3.15.... Without a drop of oil in the barrel how can ERHE be worth $2.275 billion.
OT: The animations bring some humour into the waiting game. It's gonna be long drill so some good humour is needed.
ot: tamtam. Its nice to see your delightful animated messages. How do you create them?
The stock price is getting a little airy in relationship to its moving averages. Sometimes its a pause that refreshes.
I am a long & recently added.
For a touch of humor I was asked what stocks I had in my long term investment portfolio? My answer was all my short term investments that didn't work out.
ERHE Moving averages. 50 day .35 cents.
150 day .28 cents.
200 day .28 cents
Oily, lets see what $5.00 a share gives us. Would that be a market cap for ERHE roughly about $3.6 billion dollars & we are not producing a drop of oil. On the other hand Addax has a market cap of approximately $3.2 billion & AXC is a oil producer. Don't get me wrong, I would love to see ERHE @ $5.00 but on a valuation basis how do we get to that number with only maybe oil. My numbers are approximations off the top of my head. If they are in error please feel free to correct.
There are spammers & another breed called oily spammers.
EOM
Translation has a problem. eom
I must disagree with your view regarding DD on this board.
I few posters provide a warm up for the Comedy Hour but as a whole some of the best due diligence relating to ERHC Energy & the Nigerian oil community can be found on this board. So much good unselfish research that if you are invested in ERHE this is the place to find good information if you know who to read & who not to read. The entire spectrum is posted. Articles of interest regarding the Gulf of Guinea region, political aspects of the region, oil related articles, drilling articles, virtually any article with a mention of ERHC energy & of course stories culled from various news outlets relating to our favorite Congressman. eom
A realistic post at last. I will continue with the hope that drilling starts in 08 but that may be a case of wishful thinking. I am mystified regarding the drilling of obo 2 & 3 according to one of the estemmed posters on this board that some seem to hold in high regard. The Sao Tome government officials obviously haven't been informed of the addditional drills in block 1 because they are on record as stating that only one well has been drilled. Who can one believe? The OBO 2 & 3 poster or the Sao Tome government officials. Now thats a tough decision.
I better stop now before I get Tossed.
Thank you for the answer to my question. eom.
Hercules/Centurion interest in the Joint Development Zone (JDZ) Block 4, to Dana Gas. Based upon this approval, Dana Gas currently holds 10% participating interest in Block 4.
Dana Gas’ share of the well cost is budgeted at US$ 6.1 million.
I know what Dana's share of the well cost is but I have not read what Dana paid to Hercules/Centurion for their %10 interest in block 4?
Hi MLD.
Thanks to your hard work you have made me a more informed investor. FWIW the Soliton news helped place a floor on VOYT share price. (subject to change)
I was unaware of the following. Solitron "announced their media hosting service(Soliton Douga Service) was adopted by TSUTAYA DISCAS, the largest online DVD rental membership club in Japan....
Thanks for the information.
Oily,
How about SEO/Chrome buyout of XOM, APC,AXC.
Does he see Yellow?
Are you flim's brother flam?
Oil Prices: It Gets Worse
Wednesday, Nov. 07, 2007 By VIVIENNE WALT/PARIS
Oil prices hit a record high of $97 a barrel on Tuesday, but the next generation of consumers could look back on that price with envy. The dire predictions of a key report on international oil supplies released Wednesday suggest that oil prices could move irreversibly over the $100 a barrel threshold in the not too distant future, as the global economy faces a serious energy shortage.
Follow the URL for complete article.
http://www.time.com/time/business/article/0,8599,1681362,00.html?imw=Y
The article starts with the correct figures.
Devon Energy Corporation reveals It found 250 Million Barrels of Oil in the Beaufort Sea. At today's price of oil at US$90.00 a barrel, this find is worth US$21.6 Billion in the ground.
The "US$21.6 million" number mentioned later in the article is in error. I noticed the error but I provided the article as written. I would attribute it to writer or proof reader typo.
What I found to be interesting is the following.
Devon Energy said its US$60-million Patoka C-60 well, two years ago portrayed as a disappointment because it didn't find the trillions of cubic feet of gas it was aiming for, struck an estimated 240 million barrels of recoverable oil, which at current oil price of US$90 a barrel amounts to US$21.6 Million of oil in the ground.
While Devon Energy still appears to be playing down the 240 million barrels of recoverable oil find, the company has obtained a significant discovery licence (SDL).
GIANT OIL FIND IN BEAUFORT SEA
Devon Energy Corporation reveals It found 250 Million Barrels of Oil in the Beaufort Sea. At today's price of oil at US$90.00 a barrel, this find is worth US$21.6 Billion in the ground.
October 29, 2007: 09:30 AM EST
Devon Energy Corp. revealed it found 240 million barrels of recoverable oil in the Beaufort Sea two years ago when it was actually searching for natural gas, confirming there are huge resources in the Canadian Arctic. Devon Energy said its US$60-million Patoka C-60 well, two years ago portrayed as a disappointment because it didn't find the trillions of cubic feet of gas it was aiming for, struck an estimated 240 million barrels of recoverable oil, which at current oil price of US$90 a barrel amounts to US$21.6 Million of oil in the ground.
While Devon Energy still appears to be playing down the 240 million barrels of recoverable oil find, the company has obtained a significant discovery licence (SDL). Some 26 significant discoveries licenses (SDL) -- eight gas, four oil and 14 oil and gas -- were made in the Beaufort Sea during a drilling boom two decades ago funded largely through federal incentives. At the time, companies such as Dome Petroleum Ltd., Imperial Oil Ltd. and Gulf Canada Resources Ltd. were searching for oil. Apex Resources Group Inc. owns 3.745% working interest in Significant Discovery License (SDL) #55, which contains 4,480 acres with Imperial Oil as a partner and the operator.
http://money.cnn.com/news/newsfeeds/articles/prnewswire/AQM03229102007-1.htm
How about sourcing your statement that "Chevron is supposed to be getting ready to drill another well soon, from what I've read."
You are correct about much "incorrect" information having been written about this area, from many different sources.
To play in this game looks to me like you need a black belt in the martial arts, the skill of a master chess player & the patience of a Buddist Monk. Deep pocketbook helps too.
Addax takes ExxonMobil stake in Block 1 – Nigeria-SaoTome
Block 1 is operated by Chevron, which also sought to farm out its interests earlier in 2007, and includes the Obo 1 wildcat.
Addax Petroleum has agreed to pay US$ 77.6 million plus 2% of its share of profit oil from the permit to acquire ExxonMobil’s 40% stake in deepwater Block 1, Niger Delta Basin. The permit covers 704 sq km and adjoins the maritime border with Nigeria, south of Total's prolific OML 130 block that holds the 600 MMbo Akpo field. Block 1 is operated by Chevron, which also sought to farm out its interests earlier in 2007, and includes the Obo 1 wildcat. This well was abandoned as a hydrocarbon discovery in March 2006 having encountered a minimum cumulative 45m net hydrocarbon column in multiple reservoirs. Reserves possibly stand at about half the 300 MMbo hoped for, with a high gas factor. Water depths range from 1,600 to 1,900m and there are no outstanding work obligations. There has been talk of an appraisal well late 2008 or early 2009, although a decision on this awaits the outcome of drilling in nearby permits. It is noted that Addax and Sinopec have signed contracts for the Aban Lloyd “Aban Abraham” D/S starting in the second quarter 2008. The contract is for five firm wells plus five optional wells and it is believed that four of the five firm slots will be for Addax, to fulfill its minimum work commitments of three wells on JDZ Block 4.
This URL was previously posted by
Posted by: THETUNEMAN
In reply to: None Date:10/22/2007 9:53:01 AM
Post #of 110181
This well was abandoned as a hydrocarbon discovery in March 2006 having encountered a minimum cumulative 45m net hydrocarbon column in multiple reservoirs.
http://energy.ihs.com/News/WW-News/Addax-takes-ExxonMobil-stake-in-Block-1-Nigeria-SaoTome.htm
Hi Oilphant, You say salem & dusty_golf wake up, "deepwater was in block one for over seven months & they punched one hole." In the past you inferred more than one hole was punched in Block 1. Now with XOM bowing out & reportedly Chevron shopping its interest in block 1 what say ye.
http://energy.ihs.com/News/WW-News/Addax-takes-ExxonMobil-stake-in-Block-1-Nigeria-SaoTome.htm
EO has enough equity in ERHE. If he continues to add to equity , at some stage (after an elephant discovery) he could take the company private.