Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
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
Sorry if it has been posted before. I misread the date. I was looking at the top of the page. Farrell
30 crappie Any predictions for this Friday? Sorry to pick on you, but it is too cold and rainy today to fish so I have to entertain myself in other ways. Farrell
It is interesting to compare the 2 dimensional map of the JDZ blocks with the potential drilling sites[from the latest Addax presentation labeled March 2008] to the posted 3d siesmic. It helps to orient the 3d siesmic and make it less abstract. It might be worthwhile to post the map above just below the 3d siesmic.http://www.addaxpetroleum.com/_media/2008-03_Investor_Presentation.pdf Moderators? Farrell
I would have posted the map if I knew how.
Here is some news ...Jeff Schrull to meet with the JDA next Friday to discuss drilling plans.http://www.macauhub.com.mo/en/news.php?ID=2963
Good luck Farrell
Addax is our partner in JDZ blocks 2,3,and 4. The Addax web site is a great source of information "dd". Listen to Jeff Schrull's comments on the May 2007 webcast. http://www.axisto.com/webcasting/investis/addax-petroleum/capital-markets-day-2007/index.htm?sid=wma-32k
Jeff Schrull is the director of exploration for Addax. Prior to his position with Addax he worked for Chevron. I believe as director of Nigerian operations. He also was present with Chevron when Obo1 was drilled. Jeff Schrull's comments are one of the reasons I am enthusiastic about ERHE Good luck Farrell
More I agree completely. I have never heard of a public company responding to an internet bulletin board post as a part of a formal press release. If there is no relevance you would just ignore the comments. The Keeney e-mail was an apprpriate response. The fact that Luca acknowledged even disclosed it in a public press release to inform all other shareholders and concerned parties can only mean one thing: the white board discussion could be relevant to future events for ERHE.
Now couple the PR with the wave of buying this week it makes you wonder if the unintended release of information accelerated what had been a quiet accumulation of ERHE shares.
Something is in the air. Good luck Farrell
Luca's spin on the white board was significantly different than Keeneys Farrell
Oily, Congratulations over 1 million shares traded this am. Good luck Farrell
Earlist Easter in 90 years, lunar eclipse last month, oilphant posting almost daily, our prodigal son, meridian has come home, cryptic white board messages deciphered ....Of course our share price is going up! Good luck Farrell
I hope today share price runup is buying from the guys printing Addax's and Anadarko's slides and handouts for their upcoming meetings. Good luck Farrell
Accidents - Freud did not believe in them and neither do I.
Someone [at ERHE] wanted the white board to be seen. When it was ignored for a view weeks an anonymous person popped up to point it out.
The real question is ....Why? ERHE must have signed confidentiality clauses as a part of any arbitration. Someone must be frustrated with the proceedings. A lot of possiblities exist such as extended fruitless negoitations that have stalemated. Perhaps ERHE low share price is an issue in determining relative valuations for buy in, buy out or "portfolio swapping". Maybe the point is to reassure shareholders that ERHE does have value and negotiations are preceding.
All the discussions will be accelerated as drilling approaches. 2008 will be a better year for ERHE. Hopefully this will help our share price. Good luck Farrell
Crappie,
Who knows. We will just have to wait until all the parties fess up and come clean. One of the reasons we make things up is because we just get to see small snipets of the truth. We use our imaginations to fill in the blanks. Farrell
I was able to make out some detail by increasing magnification and increasing the contrast by tilting my laptop screen. I agree with most of the other posters[except I could not find a date]. The box at the end of the first arrow from ERHC I believe is BUY MINOR % The script above the 2 boxes I think is Portfolio Acquisitions. The speaker has a blue pen in her hand and written below the graph in the middle of the page in blue is Production
1 year
In the graph on the middle of the page is 872 or 8>2. In the text below I suggested an ipo price of 8. Obviously this is quite a stretch, but putting together, the graph ,the figures,the production 1 year and knowing the points the speaker has to make if they want SEO's money that is what I confabulated.
The graph at the top of the page -I can not even invent an explanation .
Obviously no one should invest money based on these speculations. In the spirit of cooperation with other board members it was fun to try to dissect the white poster. Good luck Farrell
Text from the White Board Presention [my swag]
Greetings! I was sent from the Brenner Group to answer questions which have arisen after our earlier presentations to the partners of JDZ blocks 2 and 4: Sinopec Addax and ERHC.
The partners have previously agreed to obtain a drill ship and embark in a cooperative manner to explore the JDZ blocks. Beginning in the fourth quarter 2008, Aban Abraham is scheduled to drill 5 or more wells in the blocks.
The Brenner Group was approached by the partners to recommend a way to further merge the partners interests. A merger has the potential to increase efficiencies,improve cooperation and coordinate exploration of the blocks. If achieved these goals will save capital and result in earlier production which will improve the profits and share price of all the companies.
Our recommendation is to form a new company. The partners will combine their interest in the blocks. Sinopec and Addax will have the option of funding their contributions with additional capital investment or additional portfolio exchanges of nearby properties.
ERHC will be purchased with cash and warrants. ERHC shareholders will have the option to invest by purchasing shares in the new privately held company.
The new company will be large enough to attract funding and investment from stock exchanges in New York, London, and Toronto.
The new company will seek to buy minor owners of the blocks. It will also be able to make additional portfolio acquisitions
The new entity will be listed on the TSX which will simplify accounting and legal requirements.
Approximately one year from production we will take the new company public. If the drilling produces the reserves suggested by the siesmic studies we anticipate an initial IPO price of $8 a share as outlined on the graph in the middle of the presentation. The IPO will give ERHE shareholders an oppurtunity to redeem some of their warrants. We expect the price per share may become depressed until production is stable. As the graph suggests the price per share will increase as production increases. This will provide another oppurtunity for ERHC warrants to be redeemed.
In summary the Brenner Group has helped over 600 companies achieve their financial goals by assisting mergers and providing an assortment of financial services. We feel confident we can provide the leadership to see this project to fruition. Enjoy ! I look forward to seeing other interpretations. Good luck Farrell
From the "news" section of the Brenner Group website. The Brenner group evidently offers services such as temporary CFOs for small companies. Perhaps they were engaged to head
our proposed new consortium. The "new" company. http://www.nytimes.com/2007/02/15/business/15sbiz.html?_r=3&oref=slogin&oref=slogin&oref=slogin Quote from Charles Brenner about half way down. You guys are fun.
Good luck Farrell
Obo 1 discovered 150 feet of net pay drilling off structure. The seismics suggest they picked one of the least likely areas to drill. It seems logical to assume you could multiply the 150 feet of net pay by several factors if one drills at the apex of the structure. It is likely Chevron had similar information when they drilled Obo 1. So why drill off structure? I am sure there are a variety of technical explantions. I would enjoy reviewing any thoughts from our online oil experts.
Of course the motivation for drilling off structure could be political. The drilling fulfills some of Chevrons obligations to the JDA. It would pacify the leaders of Nigeria and STP.
It also would buy time for Chevron to negoitate from a stronger position with SEO and ERHE, arrange political investigations by the United States government, and indirecty sponsor incriminating studies by our opponents in STP.
Since it has been almost 2 years since Obo 1 has been drilled,it is my hope these manipulations have been fruitless; and SEO has held his ground. Future drilling will answer all of our questions.
Hopefully BB is correct and the posting of the seismic data is a sign more good news is soon to come. I am still holding. JMHO Farrell
hey Oily,
How much of the $40 billion [$40,000,000,000] XOM cleared last year are they going to throw our way? Farrell
Hopefully the 'consolidator' is someone with very deep pockets. I am tired of propping up this stock by myself {and I am not doing a very good job of it]! Farrell
Afren signs natural gas deal.
http://www.oilvoice.com/n/Afren_Enters_Into_a_Cooperation_Agreement_with_EON_Ruhrgas_AG_and_African_LNG_Holdings/4108f00d.aspx
Good luck Farrell