ERHC Energy Inc (ERHE)

[Southern Man]

2 Kenyan Oil Explorers With Big Short-Term Potential
Posted on 16 September 2014.
The Kenyan nation clarion call “Harambee” (let’s work together) inspires two Canadian explorers in their search for black gold.
Africa Oil Corp. has made 8 oil discoveries to-date in Kenya’s Lokichar basin.
Africa Oil’s share price is hovering at 18-month lows, despite adding 4 more discoveries in 2014.
Not only is the oil they have discovered not reflected in the share price, but they have 13 other basins to explore in the next 18 months.
Taipan Resources attempts to emulate Africa Oil Corp.’s success when it spuds its 3 well programme in December – both companies have short-term catalysts.
When the American industrialist Jean Paul Getty was asked how to succeed in business he replied,
“Formula for success: rise early, work hard, strike oil”
Oil exploration in frontier regions such as Kenya is a risky business. The attraction of risk reward skew attracts speculative investors to the proposition. I will take a look at two Kenyan based explorers at different stages in the exploration-development cycle and their potential for 100% short-term upside in the coming three months.
Lundin family-backed Africa Oil Corp. (OTCPK:OTCPK:AOIFF, AOI.TO, share price $5.55) is a $1.7 billion market capped (OTCPK:MCAP) company with 8 discoveries in Kenya’s Lokichar basin totalling an estimated net 231mmbbl (600mmbbl gross) 2C resources. The ‘C’ stands for contingent. The 231mmbbl estimate has been touted around for a year now, and 2014 has seen 4 additional discoveries. Indeed recent ‘Amosing’ and ‘Ngamia’ appraisal wells still have not found ‘oil-water contact’ (or the edge of the field). And what has happened the share price over the summer? It has fallen to 18-month lows to an unfathomable $5.55, CAD$6.14, as at close of business last Friday. It’s as if the 2014 discoveries have never happened.

Some say that the share price decline is due to the Eastern side of the Lokichar basin not having flow rates as good as forecast but the Ngamia-Amosing discoveries on the Western flank more than makes up for this.

http://seekingalpha.com/