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Dubai? Gee we have not heard about Dubai for sometime. If you have some information about "something good" for ERHE coming from Dubai, today would be a good day to lay it on us. We need some good news. And we need more than a hint,a sniff or a rumor from a neighbor's 2nd cousin from Duluth who works with a guys whose sister knows... We need good news-LAY IT OUT THERE.
Because if you can not the inneuendo spewing, paranoid boiler room dot connecting conspiracy theorist oilyphantesque pumpers will come out of the wood work. They will look in their closets and drag out names like Dubai Islamic Bank and Millenium Finance Corporation. Then the posts will begin. Page after page ,day after day ,post after post of nauseating drivel. Linking our beloved ERHE to everyone from Stalin to Ghandi and extending ERHE's interest across the globe from Aremenia to Zanzibar. They will even drag out our arch enemmy ,the fiend, our Lex Luther -Walter Brandhuber.
So please spare us the drama and just tell us what you know. JMHO Farrell
dat
Third: the legislation will lay the ground work for Petrobras, Galp , Sonagal and their MONEY to enter the EEZ. Good news for ERHE and EEL. Thanks homeport JMHO Farrell
Bayfisherii, the link below is to a February, 2002 press release which describes the Seismic data agreement.
http://www.allbusiness.com/company-activities-management/company-structures-ownership/5861818-1.html
Spec I believe the last thing STP wants is to further delay the development of the EEZ. Any attempt to exclude ERHE will have legal and political ramifications which will result in handcuffing the STP attempts to open the EEZ. ERHE has been sucessful in defending its rights in the World Court. Any attempt to exclude ERHE from the EEZ will result in more legal action which should be the last thing the government of STP wants. In addition Nigeria would put political pressure on STP to treat ERHE fairly. I feel confident STP needs to quickly develop the EEZ and any plan offered will respect the rights of ERHE [and EEL] for the reasons outlined above.JMHO Good luck Farrell
Homeport thanks for generously sharing this important information. Hopefully STP will expediate the legislative process to get things rolling in the EEZ. This announcement confirms the companies are negotiating with STP. The lusophone connection would include both Petrobras and Galp who are partners in the enormous oil fields of the coast of Brazil. Their deep water experience and deep pockets would insure the EEZ blocks would be expertly developed. The Brazilian pre-salt fields may be similar in geology to the EEZ and JDZ. Good news for ERHE! Good luck Farrell
http://uk.reuters.com/article/oilRpt/idUKB62158420080415
http://uk.biz.yahoo.com/22012008/323/petrobras-galp-find-large-gas-reserve-near-rio-de-janeiro.html
Red, I agree. He is implying a buyin or stock swap involving Chrome-SEO's 43%. The possiblities are endless. Time will tell if anything shakes out. After listening to Addax's presentation yesterday, I believe ERHE is in great shape to benefit from any deal out there whether it is NNPC gas deal with a company such as Gazprom, an asset swap for our EEZ rights with Petrobras, or a consortium formed to develop the JDZ involving a major oil company flush with cash such as XOM. With drilling just a few months away we may be better off to stay independent as long as possible. The fun is starting for ERHE shareholders JMHO Farrell
I am confident SEO is motivated to maximize the value of his ERHE investment. The reason can be simply explained by the graph below. SEO owns 303,591,433 shares of ERHE through Chrome.
ERHE sp Value of SEO's investment
.50 ...........................$ 151,795,716.50
$1.00...........................$ 303,591,433.00
$2.00...........................$ 607,182,866.00
$3.00...........................$ 910,774,299.00
$4.00...........................$ 1,214,365,732.00
$5.00...........................$ 1,517,957,165.00
$6.00...........................$ 1,821,548.598.00
$8.00...........................$ 2,428,731,464.00
$10.00..........................$ 3,035,914,330.00
$20.00..........................$ 6,071,828,660.00
As you can see from the graph the higher ERHE's share price the more jingle SEO has in his pocket. SEO may have billions of reasons to work diligently for ERHE. JMHO Farrell
Rest assured our rights to the JDZ blocks are solid. The awards have been sanctioned by the JDA with the approval of the governments of Nigeria and Sao Tome and Principe. ERHE's rights have been affirmed by the World Court. Anadarko, Addax, and Sinopec all recognized our legitimate rights when they paid to become our partner in blocks 2,3,and 4.
As block operators Anadarko, Addax, and Sinopec will decide about the drilling . They will chose and contract with the drilling companies. They will decide where to drill, when to drill, and how often to drill. They obtained that right when they signed the contract with ERHE for the blocks and became block operators. The drilling delays are frustrating , but understandable due to the shortage of deep water rigs.
In the meantime it is perfectly reasonable for ERHE's management to entertain and review other business oppurtunities as they develop. It will not slow down or speed up the drilling by one minute for them to do so. Remember it is not ERHE's responsibility to decide about the drilling. Many of us believe ERHE's management when they state they are well connected in The Gulf of Guinea, West Africa, and other oil rich areas. These connections have resulted in potential oppurtunities which are being reviewed by Mr Bovell and Mr Ledbetter.
I believe ERHE's management has been diligent in running our company. I hope they can secure additional business for ERHE. After all that is their job. I agree with many of todays positive posts . Our small company has made tremendous strides over the last few years. We have legally secured our blocks . We have signed good contracts with outstanding partners. Now we are close to drilling the blocks. With the cost of oil at over a hundred dollars a barrel ERHE has more potential than ever. Many have misunderstood how long it takes to develop deep water oil fields in this part of the world. Look at the history of Akpo. I remain more optimistic than ever about ERHE. Obviously the risks are great and every investor will have to weigh them against their own financial situation. JMHO Good luck Farrell
Dane Your prediction is noted. The fact that you are normally quite logical, thoughtful and rarely make predictions gives you more credibility than most. Time will allow the truth to unfold. Good luck Farrell
Tullow oil up on takeover rumors. http://www.oilvoice.com/n/Tullow_Oils_Shares_Ignite_After_Talk_of_Takeover/84f0813d.aspx Good lucl Farrell
In since 3/2004 ,first buy was @ .42. Unless a buyout occurs I will be here after drilling. Man you have too much time on your hands. Good luck Farrell
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The agreement between Sinopec and Addax contracting the drillship Aban Abraham is still intact. http://www.rigzone.com/news/article.asp?a_id=42280
As operators any news changing the agreement will be announced as a "material event" If any one can document an announcement by the operators changing this agreement I would like to see it posted.
No one is happy about the drilling delays, but our contract with the Aban Abraham remains intact and I believe will be fulfilled. Obtaining another drilling rig-the ROO, will be challenging in this competitive environment. Addax is comitted to finding a ROO and was close to signing one.
The downturn in oil prices may help free up a ROO as companies review the economics of signing multiple rigs. I believe the patient investor will be rewarded. JMHO Good luck Farrell
Redinvest and walldog,
The fact the press release mentions the Bayelsa state indicates this is likely a regional agreement limited to this one state in the Niger delta. Given Nigerias large natural gas reserves it still could be a large amount of gas. Gazprom issued a press release earlier in the year indicating discussions with Nigeria were ongoing regarding Nigerian natural gas and related infrastructure. http://www.gasandoil.com/goc/company/cna81273.htm
I expect Gazprom to be a player in this arena. Hopefully ERHE can find a niche in this area. One with producing assets to be spun off as a subsidiary and listed on London's AIM. I believe it is still in SEO's interest to assist ERHE. It sounds like SEO's connections are still viable. Good luck Farrell
Or...in a fortnight [or 2 or 3 or...]Good luck Farrell
ERHC's Razor:
Consortium of large oil companies with the assistance of the JDZ buys ERHC, EEL, ADX and the rest of the EEZ to secure dominant role in the Gulf of Guinea.
Such as: XOM, SNP, CVX, PBR
Remember: "White board" new company
Why: 1. Deep water drilling is expensive and risky- deep
pockets needed
2. Rigs are scarce -pool drilling expertise
3. JDZ is impatient- Remember recent meeting
4. Companies want to share risk
5. Major oil companies have never had more cash
6. Limited opportunities to secure large oil fields due to
nationalism
7. Improved security
JMHR good luck Farrell
Spec, the ERHE web site still lists 15% of JDZ blocks 5 and 6 as well as 20 % of block 9 as assets. Good luck Farrell http://www.erhc.com/jdz/
Dat, remember Addax and Sinopec signed the agreement to bring the Aban Abraham to the JDZ . The drilling program includes several wells on blocks 2 ,3 and 4. Good luck Farrell .http://www.gasandoil.com/goc/company/cna71558.htm.
The link below could be the template for ERHE to obtain an oil producing Nigerian block.
ERHE would be the operator resonsible for a small percentage of expenses. One or two indigenous Nigerian companies to provide "protection". A multinational oil company as an operator. ERHE must be careful in evaluating these blocks -something free can end up being most expensive Good luck Farrell http://www.oilvoice.com/n/Addax_Petroleum_Acquires_Shallow_Water_Exploration_License_in_Nigeria/979e1c16.aspx
2 indigenous Nigerian oil companies and Addax receive OPL 227 . This award could be similar to what may occur with our planned AIM subsidairy. Excuse me if this has already been posted. Good luck Farrell.
http://www.oilvoice.com/n/Addax_Petroleum_Acquires_Shallow_Water_Exploration_License_in_Nigeria/979e1c16.aspx
There has been speculation along those lines- ERHE's future AIM subsidiary could consist of an oil producing property from Nigeria. Whether it will come to fruition [or be more of a curse than a blessing ]remains to be seen. Review balance builder's weekend posts for more details. Mr Bovell has been working on this acquistion for about a year; we should see the details soon. Farrell
Ruby Thanks The link below is a BBC story re Shell and the Ogoniland oil field.http://news.bbc.co.uk/2/hi/africa/7437247.stm Good luck Farrell
Tamtam Thanks for posting the video. Farrel
Ruby Thanks for posting. Do you have the link? Shell wants to farm the field to Addax . The NNPC may adopt a joint venture partnership. Hmmm may be some wiggle room for our minnow in some of these abandoned oil fields. Good luck Farrell
Magic our thoughts about ERHE are closer than you may think. The buyout plan you outlined is tenable and consistent with the limited information we have been able to gather. A lot has gone on behind the scenes and we are only privy to some tidbits. Certainly, Mr Ledbetter has reviewed a number of oil producing properties and Mr Bovell is structuring a financial plan to roll the properties into the new subsidiary to be listed on the AIM. While I believe shareholder value would be greatest if we stay independent, I think a buyout is more likely. The oil producing property will give us sustained earnings and should increase our share price. Once our sp gets closer to our true value, we will be able to negotiate a fair settlement. Once the events start rolling a deal could fall into place quickly. SEO still holds all the cards and I remain convinced he is going to squeeze every penny out of ERHE's suitors. With drilling on the horizon, Mr Bovell working on the subsidiary, the high price of crude, and the JDZ seismic information I remaim optimistic. JMHO Farrell
Magic- thanks for the insight. Now it is obvious : I really do not own enough ERHE shares. Your scenario of the buyout of ERHE by Addax followed by the takeover of Addax by CVX or XOM includes the vision of me sitting on the beach sipping a drink and counting my dividend checks. That will be the day. Farrell
BB Interesting dot connecting, but why would SEO use ERHE rather than one of his Nigerian companies? Addax and SEO worked together on the Starcrest deal. What advantage would ERHE have ? The only one I have thought of was the Nigerian government expressed some concern over the transfer of the oilfield to Starcrest. Perhaps using a USA based company would protect SEO from Nigerian government legal prying. Wouldn't that be a switch! See my post #115524 from January
Good luck Farrell
Afren, jdz block 1 4% partner, strikes oil in gulf of Guinea http://www.afren.com/uploads/AfrenFirstOil140608Final.pdf. Good luck Farrell
Relax - We closed up over 4% today. ERHE's chart looks great. The higher oil prices helps our share price. The ERHE "road show" will pay dividends. We are within a few months of drilling. There is a lot of good news on the horizon. Peter did a super job yesterday, but he presented an overview of the company, not any new disclosures. Our drilling partners control the release of the real news which will move our stock higher. Mr Bovell is working on the new subsidiary. I have never been more optomistic about my ERHE investment. Hang in there . Good luck Farrell
Morgan Stanley predicts $ 150 oil by July 4. GL Farrell
http://www.chron.com/disp/story.mpl/ap/business/5823109.html
Interesting! Sounds as if they wish to emulate the Brasilian energy policy. Good luck Farrell
Sao Tome and Principe have a close relationship with Brazil ,Angola and several other Portugese speaking counties. Petrobas is currently working oil leases in Angola, Nigeria ,Senegal and several other african countries The leadership of STP has been encouraging PBR to invest in the EEZ and the JDZ. There has been speculation PBR may be a leader in exporing the EEZ. Heres a link to an older article.
http://www.afrol.com/articles/14591
Good luck Farrell
BB Thanks ...Good luck Farrell
I think Mr Bovell's deal will most likely involve an asset in the GOG. I have trouble seeing our minnow on several continents, although Bovell and Ledbetter have stated they are looking virtually everywhere. Our company's expertise is in Africa. Good luck Farrell
ERHE has two assets to fund the AIM subsidiary: its current cash about 33 million dollars or its holdings in the JDZ. Mr Bovell stated he wishes to "incorporate the new company in an advantageous tax environment". Which I infer means the new AIM subsidiary will produce substantial income.
I agree with Walldog we need the cash to fund operations and any unforseen liabilities. The 33 million would purchase a relatively modest income producing asset.
What makes more sense to me is Mr Bovell is laying the ground work for some type of asset swap. He state as a goal to "diversify and use the companies expertise to tap into other oppurtunities". I believe ERHE will receive an oil or gas producing property for all or part of one of its JDZ blocks. The swap of assets could be as complex as the formation of a global JDZ consortium or new company which may include new partners such as XOM or PBR. It could be something as simple as trading assets with one of the smaller companies operating in the GOG. The final outcome I believe is we will own an oil producing asset.
I do not believe an asset swap of a portion of our JDZ assets is precluded by Mr Bovell in his question and answer statement
Mr Bovell was hired by the company as a consultant in 2007. During this time he has been formulating a deal for the company. We have only received a few hints as to what is planned. Only time will tell for sure. Good luck Farrell
If a consortium or new company is to be formed in the JDZ, ERHE may be offered a variety of assets in exchange for part of its JDZ interests. Mr Ledbetter and Mr Bovell will be responsible to sort through the offers and make recommendations to the ERHE BOD. Stock and cash may be part of the offers. The fact they mentioned N America, Africa ,and Europe up to the borders of Russia means to me oil producing properties are being reviewed and valued.
The interview with Mr Bovell outlines his plans. One of the items missing in the review is the capital outlay needed to fund the new subsidiary. He hints the company will be able to borrow money after its listing on the AIM. Perhaps some of the ERHE contribution to the new subsidiary will be assets [as mentioned above] spun off as a part of the negotiations that are ongoing . Our JDZ partners may also be partners in the new subsidiary.
At this point it is all speculation on our part , but something is cooking and the temperature is going up.Good luck Farrell
I was surprised to see the proposal to spin off a subsidiary with a listing on the AIM. Any thoughts as to the advantage to ERHE and its shareholders of the subsidiary spin off as opposed to just listing ERHE on the AIM? Good luck Farrell
Wow,Interesting interview with Mr Bovell, our new vice president of corporate development. Mr Bovell reviews his vision for ERHE with unexpected candor. Hopefully this web interview will mark the beginning of better communications with the shareholders. Good luck Farrell
I was hoping XOM used the 40 billion to buy ERHE and add to my bottom line. Have a good one! Farrell
Complex economic relationship between Sinopec and China. The "managed" price of gasoline versus the free market cost of crude has resulted in a hugh fall in revenue for Sinopec and its shareholders. No wonder there are reports of gas shortages and violence at the gas pumps in China. The Chinese government's cash infusion softened the blow of the loss , but can not hide the obvious imbalance in accounts. The "free market" principals adopted by the Chinese seem to have serious short comings. One of the reasons I elected to own commodity companies that sell to the Chinese rather than directly own Chinese stocks.
I hope our politicians are paying attention because we will suffer the same results with gas and energy price controls. Good luck Farrell
The uptrend in volume and price began about 2/12/2008 and was about the time of the Nigerian oil conference. The buying has been a persistant and disciplned accumulation of shares. For those reasons I believe the recent advance has been precipitated by a new buyer- probably a fund or company. While the retail investors have piled in as the share price has increased , I do not believe they are the reason behind the run up. I agree the " white board " discovery accelerated the buying. I am very optimistic about the next few months. Good luck Farrell