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i guess he should've proofread before he sent it out
"(do you want to set the stage for fund raising by mentioning
something here?)"
I guess Peter told him no?
is that a note that dan forgot to omit in that pr tam?
maybe the financial committment required to move forward doesn't makes sense from a business perspective when EEL only has 9% of Block 2? Total and SNP are setting the direction for Blocks 1 & 2. Especially if the plan were to consolidate the 2 blocks. It would be an expensive move to go forward, with drilling and production committments, for everyone involved except for ERHC,
-ach
if you look at SNP, they have a combined interest in Blocks 1-4 of nearly 50%. Wouldn't it be reasonalbe if SNP decided to divest a % in Block 2 to increase the % of ownership Total has in the JDZ? Total is the company that actually knows what they're doing and Block 2 is closest to Block 1.
I find it hard to believe that all the % of these minority partners in Block 2 have just been sitting around when we have known for a long time that most of them were out. Seems like someone knows where all the percentages are going to end up and it's just a matter of getting there.
just a thought...
-ach
Is it not possible they have not announced it because there are other agreements they are working out with SNP? Don't know that to be true, but it is possible, isn't it?
They had everything lined up when Devon and Pioneer left and had SNP ready to jump on. Maybe a similar situation is in the works?
I don't know that to be true, but it would explain the delay.
-ach
mz,
perhaps this % configuration would have been the agreed upon make up all along? That's how SNP was able to entice Total to entering Block 1? If Block 1 & 2 were combined and everything were split down the middle, this is how it would look:
Combined Block 1&2 new %
Total (after gaining SNP's block 2 %): 44.5%
Addax/SNP: 20%
ERHC: 11% (which could be eaten up by total too)
Don't know what is going on with these Block 2 %'s
ONGC, Amber, Foby and Equator - It would be appx. 17.5% of the 2 blocks if they were evenly combined (35% of Block 2). This % is available for however it is worked out.
Not sure how these 3 and their Block 1 interests would fit into it. But I don't think they are going anywhere. Cut their interest in half when you add in Block 2 and this is what you end up with.
Afren: 2.2%
Dangote: 2.3%
Sasol: 2.55%
Obviously this is waaaaay oversimplified and probably not realistic, but it does result in a % make up that I think SNP and Total would be happy with. Like I said, just thinking of a happy scenario for once. lol
-ach
What if the idea was for sinopec to give up their rights in block 2 so all of the partners left? Then total buys erhc's rights and they combine blocks 1&2 into one large block? It seems like from totals perspective this would b ideal. Sinopec would be happy with their % in block 1 and the learning experience?
I don't know. Just thinking of a happy scenario...
-ach
looking into that issue homeport...
Hi guys. It is my understanding that STP and ERHC had their 3rd round of EEZ PSC negotiations scheduled for March 29, but at the request of ERHC, the meeting was postponed.
-ach
Isn't it funny how numb we have become to all of it now? Kind of makes you long for the old days when we were younger and so much more optimistic.
Almost sounds like crazy talk! probably too simple for what will really happen. But definitely plausible.
-ach
and here we sit. lol
Pete,
My thought has always been they will not be bought out, but will sell assests when it makes sense. It seems like Block 2 would be the first to sell. That would explain why they are still trying to acquire assests - to continue that type of business plan.
-ach
Hi HP,
As was suspected, the nigerian newspaper story regarding a Block 5 PSC is not true.
Have a nice night.
-ach
will check it out for you HP.
-ach
73% of the cumulative total of Blocks 1, 2, 3 and 4 is tied up between Total, Sinopec and ERHC. Dangote, Afren and Sasol combine for 3.5% of the 1-4 total, but only have interest in Block 1. ConOil has 6.25% of the total (only interest in Block 4) and EEL has 2.25% of the total (Only in Block 2).
15% of the Block 1-4 acreage is currently in limbo due to exiting partners, which, according to my calculations, eight partners have exited. It would be nice to get a final conclusion of who will receive the outstanding and available percentages remaining in Blocks 2-4.
I don't expect Sasol, Afren or Dangote to leave Block 1. I also think ConOil is holding out for the big payoff in Block 4. Adenuga has the money to wait and i'm sure wants to make sure he stays in the race with Dangote and SEO. EEL? who knows what they will do, not a very big percentage in Block 2. But they are also African for the most part now too with Oando.
-ach
Pete,
I think he is saying ERHC is waiting for Total in the JDZ so they have the financial capabilities to proceed with the EEZ, not that the two are actually tied together.
-ach
HP,
The proposal for the February date came from ERHC. STP simply accepted the request. Don't know what stage negotiations are at.
-ach
Hi all,
The latest news is that STP has concluded negotiations with EEL and will be signing PSCs very soon, also within the last couple of weeks STP has agreed to begin PSC negotiations with ERHC on November 15th.
-ach
U,
any "hypothetical" time lines on this scenario?
Thanks,
-ach
sneak,
if that were true, and lets say total was backing erhc, wouldn't we have been considered for the tanzania bid? The government wouldn't disqualify us. And why would Total bid separately if the procedure was rigged in our favor? Same goes for Tullow, Sinopec or anybody else on that scale. It seems like the government would be more than happy to entertain our bid if we had a secret backer at this time. Just a question.
edit: and my point is if we were putting hand selected assests into the company for a buyout, wouldn't that company be backing us in these bid procedures to ensure that we get the award?
-ach
I can't argue with that mz. But I do subscribe to the philosophy that there is a lot of illegal s*** going on in africa when it comes to that stuff. I hope we can benefit. But I don't know. I can't argue with your point.
-ach
all of this makes sense if the plan is to put erhc's portion of the jdz and eez into this same company. there is no way ERHC was unaware that this was going on with Oando. All IMHO.
-ach
That is fine Krom, I understand where you are coming from. But I am more interested in the why right now. Find out why and that is just as good a crystal ball, if not better.
-ach
I'm just thinking out loud. But what is the benefit to Oando in all of this?
What if Oando's JDZ and EEZ assets have been given to Exile, with the thought that a similar deal would be completed with ERHC's JDZ and EEZ assests? After complettion of a deal, ERHC would own more of the company than Oando because of their greater interest in the JDZ. Then you would have a newly named company (fka Exile Resources) with a listing on the TSX that has a huge % of the EEZ and JDZ. Wasn't that the end result of the Whiteboard so many years back?
Idk, that seems very complicated and involved, but it also seems like a good way to go if the EEZ and JDZ were being packaged. At that point the Chinese and French could get involved too. Then our main assests (JDZ, EEZ) are available for sale if the price is right, and ERHC can continue trying to swing deals in the rest of Africa.
Just some thoughts.
-ach
FYI so everyone doesn't bother dan with the Imo story:
XXXXX:
Thanks for passing that along. I can’t offer guidance on when any announcement might be made, so I can’t indicate if or when a news release is planned on any subject. As we have been saying for more than a year, ERHC is aggressively pursuing its growth strategy and has been in various stages of discussions with a number of different organizations and government entities. If there is an award of rights or the Company enters into an agreement, we will have something to disclose, but that is not the case at this time.
Sincerely,
Daniel Keeney, APR
DPK Public Relations
Krom,
Chad cares about royalties from oil production. Not a a few million dollars from any revenue they could receive from ERHC shares. If ERHC was able to bring a partner to the table that can get the job done, then i think Chad is interested. Trading operatorship and a % of the EEZ seems like a good way to entice a partner. Just my opinion.
-ach
longtimer,
Couldn't another popssibility be a deal with Taiwan to take a percentage and operatorship in an eez block in exchange for a full carry in the EEZ and partnership/carry in the Chad property? just thinking out loud. It would certainly explain the secrecy on the terms of the deal.
-ach
That's an ambitious goal for 2015, Homeport. How are they going to nearly triple Addax's output in only four years?
-ach
Funny you should ask HP. I will say that it appears your source is correct.
-ach
what about (d), we need the techinical expertise to review the quality of the properties that are being offered to us in exchange for a % interest in the EEZ?
just another possibility that i think middy brought up.
-ach
I sent you an email tamtam.
-ach
I don't know those answers middy. All we know is EEL is going first in the PSC discussion. We don't know that there won't be different terms in our agreement. I assume that would be why there would be so many rounds of negotiation.
-ach
I did, S2R. No answers for the questions you posed at this time.
-ach
Hi guys.
One round of negotiations left to complete EEL PSC. Preparations for ERHC EEZ PSC negotiations will begin soon. A meeting to discuss these preparations is anticipated for the end of the month.
-ach
very interesting sm. i wonder how badly seo would like to be on that list with his two buddies?
-ach
umbra, i will shoot you a message on friday. no worries.
-ach
sorry homeport, unfortunately, that is the extent of the info i received.
umbra, can't reply privately. ask me again on friday during happy hour when private reply is free.
-ach
yes, sinopec's report on phase i