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BB,
Other dancers on the floor have taken notice of our dressed up minnow.
Dead on, it`s basically what i`ve been posting about all along...........Watch what developes near term, it will be interesting to all longs!
Watch and see the latest developments enjoining, you might be surprised!
BB,
"Joe Shea posted once that he had heard Emeka Offor was willing to look at any reasonable offers."
Many offers are yet open and being negotiated ongoing for feasibility. The company I work for may of dropped out, but they still have interest,"BIG TIME," along with many other O&G companies.
Regards, Stockguard
Nigeria, Sao Tome approve Addax operator of JDZ oil block
By Collins Edomaruse in Abuja and Mike Oduniyi in Lagos, 02.08.2006
The Federal Government yesterday said it realized about $1 billion (N130 billion) from the auction of oil acreages at the 2005 Bid Round conducted by the Department of Petroleum Resources (DPR) last August.
Also, the Joint Develop-ment Authority (JDA), the body administering hydrocarbon resources in the Joint Development Zone, has approved Swiss oil firm, Addax Petroleum, as the operator of oil block 4 in the Gulf of Guinea.
Minister of State for Petroleum Resources, Dr. Edmund Daukoru, while officially declaring the licensing round closed in Abuja, said that revenue represented what he called the full payments made in bonds by 25 firms that fulfilled all conditions set out for the exercise.
He, however, said that the list of the 25 firms would not be available until another week when it was expected that all relevant bodies in the industry, would have completed the audit of the process.
The minister, at the event that was attended by the industry’s big names like Group Managing Director of Nigerian National Petroleum Corpora-tion (NNPC), Engineer Funsho Kupolokun, and the Ambas-sador of Norway to Nigeria, Mr. Tore Nedrebo, explained that of the 44 awards that were made at the end of the exercise, 25 companies made full payments for the blocs they won, eight of the firms dropped partial payments while others couldn’t fulfill any financial obligations associated with the exercise.
“But we have ordered that the monies paid by the firms that lost out, just about $83m, be refunded to them immediately.”
The minister also said that, “the government, in keeping with the mood in the country, has ordered the DPR to refund all payments partially made by some companies as a way of mitigating their losses. In other words, those who made full payments, gained their blocs, those who made partial payments had their deposits back while those who did not make any payments at all and the other second category, are advised to take another opportunity which comes up before the end of this year, but must learn to bid more sensibly.
He described the bid rounds as encouraging, adding that the post-bid process holds more potential for improvement in the industry. “What we have done in the upstream, is the replication of what is happening in the downstream. If in the process, there is default, we blame that on first time operation, because funds are very difficult to access from the banks. But if it were in the downstream, banks are always ready to finance obligations to export cargos of downstream products.”
Earlier, the report of the committee of international oil experts that reviewed the bid process was presented to the federal government and the participants.
Chairman of the panel and Norwegian oil expert, Mr. Willy Olsen, expressed satisfaction, on behalf of the panel, with the process, which he scored as transparent, but added there was still plenty of room for improvement.
Presented by the Norway’s Ambassador, the report indicated that: “The 15 members of review panel had extensive discussions on potential improvements in future licensing rounds in Nigeria. The members of the panel represented both international oil companies and indigenous companies. Representatives from the US Embassy, the British High Commission and the Canadian High Commission took an active part in the review. Three representatives of the Norwegian Petroleum Directorate were also members of the review panel as part of the close and ongoing co-operation between DPR and the Norwegian Directorate.
“As part of the review, a major questionnaire was sent to 200 companies that had showed an interest in the 2005 bid round. The panel had, when it met, received 35 responses from a wide range of international and indigenous companies, some of which had won in the bidding round, others that had lost. The majority of the companies saw the bid round as a step in the right direction, but they also emphasized the potential for improvements. Future license rounds should be organised quite similarly to the 2005 round, but the message is that you have to be firm – and not accept alterations after the bids have been delivered.
“ The review panel recommended that a firm schedule should be established to close the 2005 bid round. A clear recommendation in the panel's report was also to allow sufficient lead time to plan and prepare the next license round with a focus on key objectives and processes. The next round has to be executed with firm terms and schedules.
Receiving the report, Daukoru said government would look at the report dispassionately. He assured the participants that the government was preparing for another bid round adding that the forthcoming exercise would afford the authorities the opportunity to right whatever imperfections were noticed during the previous exercise.
Meanwhile, the Joint Development Authority (JDA) has approved Addax Petroleum, as the operator of oil block 4 in the Gulf of Guinea. Addax replaces US independent oil firm, Pioneer Natural Resources which pulled out from the consortium with ERHC Energy, the US-based company in which Nigerian indigenous oil firm, Chrome Energy, has a majority stake.
President and Chief Executive Officer of ERHC Energy, Mr. Walter Brandhuber told newsmen yesterday that Addax would be bringing to bear on the consortium, its wealth of experience in oil exploration and production particularly in Nigeria’s offshore area.
"The JDA has approved Addax as the operator for block 4. The approval was given last week," Brandhuber said, adding that ERHC has already communicated to the JDA its readiness to sign the Joint Operating agreement (JOA) and Production Sharing Contract (PSC) for block 4.
According to the ERHC chief executive, the consortium is now ready to sign the Joint Operating Agreement (JOA) and the Production Sharing Contract (PSC) agreement on block 4. “If the JDA calls for the signing now, we are optimistic that we are prepared to sign the PSC," he said.
A spokesman for the JDA also confirmed the approval for Addax saying "I can confirm that both parties (Nigeria and Sao Tome) represented in the Joint Ministerial Council have now approved the Addax operatorship of block 4.”
By the JDA approval, Addax has now replaced all the major American oil firms in the consortia with ERHC Energy in exercising all the rights granted it by the JDA in the five oil blocks awarded last May. The consortia included the ERHC/Devon/Pioneer in Blocks 2 and 3.
Meanwhile, the Joint Ministerial Council (JMC) of the JDA yesterday, agreed to convene a meeting on February 28, 2006 in Abuja, to consider and approve the Production Sharing Contract (PSC) guiding operations in the five oil blocks awarded last year.
The JMC, which consists of representatives from Nigeria and Republic of Sao Tome and Principe, which began meeting on Tuesday, also rejected the judicial report purportedly issued by the Office of the Attorney General of Sao Tome and Principe, condemning the process of award of the blocks.
The Sao Tomean Attorney General late last year, released a report alleging "serious flaws" in the way the blocks were awarded. The said several of the companies chosen to explore the JDZ blocks, lacked the technical know-how and the financial muscle necessary to carry out the work, and that the procedures used to select the companies which received concessions contained serious flaws and did not satisfy the minimum standards required for the award of such licenses.
The tiny archipelago island also picked holes in the preferential rights granted ERCH Energy, in many of the blocks. ERCH Energy is a quoted company on the New York Stock Exchange in which a Nigerian indigenous oil company Chrome has major equity interest. The country said it would lose about $58 million in expected income if the award to ERHC was allowed to stay.
The Joint Ministerial Council has the overall responsibility for all matters relating to the exploitation and exploration of hydrocarbon resources in the JDZ. It has the final say on all matters bordering on the treaty.
At stake is the princely sum of $283 million to be earned from the award, based on the signature bonuses offered by the winners of the blocks. The amount is made up $71 million for Block 2, $40 million on Block 3, while partners in Block 4 including Conoil, will pay $90 million signature bonus. The signature bonus on block 5 fetched $37 million while Block 6 fetched $45 million.
According to the treaty, Nigeria will get 60 percent of the revenue and Sao Tome, 40 percent.
likely by ins are still in play. It`s a matter of signing off the block rights right now and assurances that it`s finalized after the inks dry. Haven`t heard any noise of any buy out of block positions, but that could well be in the cards for many reasons down the road.
BTW: A buy out isn`t going to happen anytime soon especially now with first oil discovery on the horizon. Memon and Offer saw to that angle. Brandhuber actions are the ones to watch in ERHC`s next evolution.
Gig,
SEC...Simply educated curmudgeon fits you well.
BTW: Another 40,000 filled this morning.
Don`t let that be coal in your stocking X-Mas morining, best be some ERHE certs.....
Gigwoof,
Actually i`ve added another 60,000 and still have orders in.
I`d say without the news expected we`ve been given an early Xmas present to buy low again. I think that`s the game, buy low sell high!
upatnight,
I was totally blind sided by this latest article and see no merit to it except to cause a loss of market share in the stocks price, aided by tax loss selling going forward.
It also puts continued pressure on our partners, some already hit the door but the line up today is solid I believe.
Seems as though enough is not enough, please!
REUTERS Sao Tome to ask U.S. to probe ERHC oil contracts
By Zoe Eisenstein
SAO TOME, Dec 12 (Reuters) - Sao Tome will ask U.S.
authorities to investigate contracts awarded to Houston-based
ERHC Energy <ERHE.OB> following a probe into alleged
irregularities in an oil exploration licensing round.
A report by Sao Tome's Attorney General's office said there
were repeated suggestions that Nigerian-controlled ERHC made
improper payments to officials and their families during the
award of oil blocks in a joint development area shared with
Nigeria.
"Key officials in the past have been reported to have
solicited bribes, and ERHC has provided known benefits to the
families of key decision makers," said the report, a copy of
which was obtained by Reuters.
"Such payments would be a violation of Sao Tomean law and
make the contracts voidable," the report said.
"The office intends to refer this matter to the U.S.
Department of Justice and the Securities and Exchange Commission
and to seek their assistance in investigating whether violations
of U.S. law have occurred."
U.S.-listed ERHC, which Sao Tome says is controlled by
Nigerian company Chrome, was the biggest winner from the
licensing round for five blocks, gaining the joint control of
two blocks and stakes in the three others.
Asked about the report, ERHC President and CEO Ali Memon
said his company had acted at all times in consortia with U.S.
companies.
"Whatever we have done from the time of the submission of
the bids, we have acted in consortium with other major U.S.
companies," Memon told Reuters. "ERHC has had no contact with
any Sao Tomean officials whatsoever through the bid process."
The round, which concluded in May, was the second held in
the Joint Development Zone (JDZ) shared by the two neighbours in
the Gulf of Guinea.
The Nigerian attorney general's office had not cooperated in
the probe and no Nigerian officials had testified, the report
said.
The preferential rights granted to ERHC would, if executed,
result in a loss of $58.6 million in revenues for Sao Tome, the
investigation concluded.
Separately, the attorney general's report noted the
conditions of ERHC's agreement were so favourable they might
violate Sao Tomean law by "alienating" -- signing away control
over -- its natural resources.
"Apart from fraud, Sao Tome and Principe should again
reexamine whether there are grounds for terminating the
contract," the report said.
Expressing concerns over the financial and technical
qualifications of some of the companies awarded blocks by the
Joint Development Authority (JDA), the inquiry suggested some of
their partners might simply withdraw.
"One immediate challenge to the JDA may be the partial
collapse of the second round itself," the report said, noting
none of the groups awarded blocks had finalised production
sharing agreements with the JDA.
The report said top U.S. independent oil producer Devon
Energy Corp. <DVN.N> and Noble Energy Inc. <NBL.N> had already
withdrawn from two groups where ERHC was a partner.
The investigation recommended the JDA should simplify the
bidding process, making it more transparent and reducing the
number of variables open to bidding.
International observers should be invited to observe the
process and members of the JDA should be made to disclose any
interests, the report concluded.
Homeport,
Your post have been very value, added has been Balances.
Menezes seemed to indicate to Reuters that STP could do nothing to alter the awards without Abuja's blessing. We do, of course, still have to hear from Govt and Parliament.
Obstacles to the signing of PSC`s are a done deal. It was all BS by designing factors with big money and spockpersons, ie. LAWYERS, with major interest from companies that have/had represented interest.
Balance,
Stockguard, IYO, will the market begin to recognize ERHC's value once they have legal access (i.e. signed PSC's) to explore these suspected prolific blocks?
Yes, and it will be to all that are holding and still buying extremely positive with details for ERHC. This play is by far the best buy and hold play many will ever venture in. There are a lot of underlining ploys going on here which I believe will lead this play next year to a new exchange, if not bought out, trust me!
BTW... A buy out is still being negotiated and believe it or not, by more than 4 players! From my understanding company principles are playing extreme hard ball and numbers being kicked around could still lead to a possible one or two spin offs from our existing.
I`ve not been deceptive here on this board and was trying to be a bit deceptive to cover my position at my employ when I past posted. I had some very heavy internal investigations due to my alluding to circumstances. All was resolved in my favor as I never posted specifics.
There are some very positive underlining factors about and we still may get PR`s of them before years end as I had posted months back. Some things are changing as far as my company, but it will really open investors eyes to the positive details that are to unfold in respect with ERHC Energy Inc..
For those that have been around awhile, you`ve made a excellent choice in this play. Stick with commodities and the O&G sector.
Best regards to all & a wonderful holiday in your respective beliefs.
Gig,
I really hate to spoil your bad impressions of myself but please do not open till X-Mas.
Regards,
Stockguard
Well Xmas is right around the corner. I guess we'll know soon enough now, won't we?
balance,
(-:
Best reguards,
Stockguard
mugwump,ibravo, you`ve nailed it!
Getting distracted by short term market movements is one of the main mistakes many investors make. Refusing to look beyond this current short term downtrend manipulation compounds this error.
I`m off this board and all Internet access responce on ERHC Energy as i`m being advised that I may have compromised my employer by posting here. Whatever!
This is close to the big BANG.
P.S I`ll not respond to anyone here as i`m informed the legal suits will be addressing my home and office HD, so i`m doing a sure delete.
P.S.S. BB You need to put together a non fiction book on this operation. I believe it would top the BS`s list as the worlds O&G problems worsen, your prolific enough and have the data. (-:
Another investigation, blah, blah, blah, I wouldn't of expected less form the big oils camp before the inks dry. Makes adding shares a pleasure.
You may be under water with our holdings, I sure am, but if you can shovel a few more loads as the price continues its downtrend, you`ve won the game being played.
This could go as low as 0.27, volume is low and a reversal is more likely near term.
I see before the Christmas holidays a bright future unfolding for the current shareholders. Don`t be shaken or taking, now`s the time to exit your emotions and if you can, load up.
BB,
I`ve a number of O & G lease rights that have been in the family for over 90 years and some that i`ve purchased within the past 20 years. All have offered to buy me out within the past few months. They have offered 3 to 6 times last years take.
Offer and company may except a buy in with a limited partnership attached an LP company symbol separately traded, ERHC will still be a strong public company on its own.
I`m sure we`ve figured the assumed company has been accumulating from an assumed bank ever since awards.
First oil discovered in block one or after the assumed company has enough shares, we`er back on track and 0.40 is history.
Regards, Stockguard
People: Coleman is a non issue, except he`s close to being right this time. Look at it this way, "A fool and his money, no one gets it right."
Stay or fold, i`m for the fist time in months, a buyer.
Mongrel,
Yes, positive as to past 10Qs. ERHC now has 1 partner that will carry the ball and another that may pick up the slack if needed.
Disclosers that can not be brought out at this time, will be forthcoming soon.
Sorry your insight is off track as you continue to side track.
Dig some or do you already have those answers? My bet, you know too......
I had thought the positive 10-Q on ERHC would of given the stock momentum, then settled with a positive base and trading range.
My feelings now are centered on Block 1 and what drilling there unfolds. News positive has failed to move the stock after awards and I`m not expecting that to change without some leakage from our partners.
Balance,
I don`t see the company extending themselves there with a bid, but it`s always possible they partner up being an indigenous company and then participating. EO may sway some of the players due to his clout.
Some may be surprised at the next turn of events, others have already foreseen the next developments we`ll be seeing. Wish I could be more forthcoming. If you`ve got em, hold em period.
People/investors, hang in there. You`ve been played to this point by the a few big players after awards. If you`ve held, your smart! Watch what will unfold! Be smart and play this one for the companys next announced, coming very soon.
Sorry BB, did not answer sooner, but your diligence will be well compensated. Watch our partners, they are moving fast track!
Watch when the bottem line excedes.
Watch for some excellent news in the coming weeks.
Stagnant as this companys share price has been lately, you`ve seen the last of the lows and sideways trading.
Very O.T...
Michael O. Pickens has been scramming for years in the securities market. Couldn`t fill Daddys shoes ever in any respect so he took the low road. About time he got his balls in a sling for his many underhanded securities actions.
Tried slamming a video conference company I was involved with back in the early 90`s, out of NY and at the time slander on the net was only a new venue not tried in the courts or by the SEC.
Unfortunately he`ll probably never see the inside of the federal penitentiary due to Daddys duckets. He`d be the darling of the cell block and punk of punks.
Sorry for the rant but this pig has NO class, period and needs to hone up to his past and present.
Looking for a test of 0.115-0.12 this coming week. Shares are tight and this up trend is solid. I`d like to see some strong testing going forward, with positive break throughs.
Let the volume begin.
Poison Pill
All the company need do in this case is announce they have adopted a shareholder rights plan designed to encourage the fair treatment of its shareholders in the event of an unsolicited takeover bid for shares of the company. The rights plan will provide the board of directors and shareholders of the company with more time to fully consider any unsolicited takeover bid without undue pressure, allowing the board to pursue, if appropriate, other alternatives to maximize shareholder value and allowing additional time for competing bids to emerge.
This would be voted on at the annual shareholders meeting.
The Poison Pill strategy is used by corporations to discourage a hostile takeover by another company. The target company attempts to make its stock less attractive to the acquirer. There are two types of poison pills:
1. A "flip-in" allows existing shareholders (except the acquirer) to buy more shares at a discount.
2. The "flip-over" allows stockholders to buy the acquirer's shares at a discounted price after the merger.
1. By purchasing more shares cheaply (flip-in), investors get instant profits and, more importantly, they dilute the shares held by the competitors. As a result, the competitor's takeover attempt is made more difficult and expensive.
2. An example of a flip-over is when shareholders have the right to purchase stock of the acquirer on a 2-for-1 basis in any subsequent merger.
Limited Partnership - LP
Two or more partners formed to conduct a business jointly, and in which one or more of the partners is liable only to the extent of the amount of money they have invested. Limited partners do not receive dividends, but enjoy direct access to the flow of income and expenses.
O.T....
Max your thinking is a bit off there, your reading to much into the messages on the many boards and seeing a conspiracy. They do exist but I can assure you i`m not part of any and only out to make money on fundamentally sound companies at low entry prices
Regards, stockguard.
DING,DING,DING, exactly. Short term orientated individuals will loss out, sad as it is.
The process in the works is usual and I apologize that I had not read your opinion on this subject, time restraints keep me from being current sometimes.
Watch the BS continue on RB and here as some posters aggravate in the negative the next few weeks and also look on the continued bid side for insight.
I wish I had L4 confirmation of any of the main sellers shorting, but it seems it`s a player offshore likely and that`s nothing out of the norm for and active BB play.
You`ve not figured it as yet?
Pioneer will take an stake in ERHC Energy Inc. and form a subsidiary company and ERHC will still function as an independent publicly traded entity. FYI, it will be a limited partnership and ERHC`s share price will trade in tandem with the new LP symbol. This should all likely come about before years end.
PS..... Like your investigative approach, now add onto it this bit of forward thinking.
A lot more to come with this play and many longs will exit before it plays out.
Regards, Stockguard
With the double bottom firmly in place i`ve a strong feeling along with this Q`s report and companys forward projections the stock will be in a continued uptrend.
Health care and energy the only place to be long and near term.
Look for the stock to test 0.09 this coming week and a strong move after the quarterly release.
Debt will be close to extinguished and revenue can start going to the bottom line.
Low cost high return play for those with foresight......
rancho
From my obsevations you may have your statement a bit off in your responce.
The poster is correct to the illedge shorting ongoing as it is offfshore or market makers, both likely. This is not to trap the shorts, but to insue selling to accumlate by those shorting. They will cover only when strong buying interest occures.
I strongly believe buying interest is going to hit hard when there is aknowledged conformation from company principles as to partnerships, precentages and drilling time lines. I also beliveve this will happen when least expected and within a shorter time frame than is usual.
stockguard