ERHC Energy Inc (ERHE)

[YankeMike]

A blast from the past. Check out this post from 2010. We had so much potential!


YankeMike Wednesday, 03/31/10 06:47:35 AM
Re: None
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207951
of 324340 Go
ERHC Energy Inc (ERHE) facts, opinions, DD, etc...

Updated 3/31/2010

-The first round of exploratory drilling in the Joint Development Zone (JDZ) has been completed. In Block 2, one well was drilled in the Bomu prospect. In Block 3, one well was drilled in the Lemba prospect. In Block 4, three wells were drilled, one each in the Kina, Malanza, and Oki East prospects.

-Detailed drilling results have not yet been announced. However, we have preliminary drilling results from STP:
The first phase of drilling on the Joint Development Zone (JDZ) Sao Tome and Principe - Nigeria resulted in the detection of oil in quantity "expected", and "a lot of gas" in the blocks, according Luis Prazeres, the director of the National Petroleum Agency of Sao Tome. "In Block 2, drilling has encountered a lot of gas and oil. In other Blocks, oil was found. Now companies are doing laboratory analysis and eventually will make more holes to confirm the assessment. They said it was an amount [of oil in Blocks 3 and 4] as expected."

-In Block 1 of the JDZ (in which ERHC holds no interest), the Obo-1 prospect encountered over 170 feet of net hydrocarbon pay which includes 120 feet of net oil pay and 53 feet of net gas pay. Here the link to the Addax website and the report Chevron has committed to phase 2 of block 1 JDZ drilling.
http://www.addaxpetroleum.com/operations/jdz/license_areas_overview/detailed_overview

-Total In Talks To Buy Chevron's Sao Tome JDZ Stake
http://online.wsj.com/article/BT-CO-20100304-711623.html?mod=WSJ_Deals_LEFTLatestHeadlines
MARCH 4, 2010, 11:16 A.M. ET
LONDON (Dow Jones)--French oil company Total SA (TOT) is in advanced talks to buy a Chevron Corp. (CVX) stake in the Sao Tome-Nigeria zone, people familiar with the matter said this week, as companies continue rationalizing their West African portfolio.
U.S. company "Chevron has informed the government [of Sao Tome]" it may sell its 45.9% operated interest in Block 1 of the Nigeria-Sao Tome and Principe Joint Development Zone to Total, a person said. The acquisition would make sense because "Total has a pipeline connected in Nigeria" at the giant Akpo field, which is located nearby, another person said.

-http://www.eiu.com/index.asp?layout=VWPrintVW3&article_id=1575153342&printer=printer
São Tomé and Príncipe industry: JDZ drilling promising
January 15th 2010
FROM THE ECONOMIST INTELLIGENCE UNIT
Exploration activity in the Nigeria-São Tomé and Príncipe Joint Development Zone (JDZ) appears to have borne fruit following the discovery of substantial hydrocarbons reserves in mid-December. Luís Prazeres, director of the national regulatory body for the sector, Agência Nacional de Petróleo, announced that oil had been found in "expected quantities", along with substantial amounts of gas, in Blocks 2, 3 and 4 in the JDZ.

-According to Addax, the best pre-drilling estimate for Kina, Kina South, and Bomu combined is 722M barrels! The high estimate for those 3 prospects combined is in excess of 1B barrels of oil!

-Oil prices have been rising and may reach $100 again by late this year in my opinion.

-3D seismic studies indicate that there are billions of barrels of oil in the JDZ.

-Full carry (ERHC does not have to pay any up-front drilling costs) until oil production begins.

-World-renowned technical partners in Addax and Sinopec.

-As of December 31, 2009, the Company had $21,457,893 in cash and cash equivalents and short-term investments, which at the current burn rate is enough to last more than 5 years.

-The company is also virtually debt-free.

-300 million barrels of oil for ERHC's rights in Blocks 2 through 4 would value the stock at somewhere between $3 and $5 (depending on the price of oil), and that doesn't include the rest of our Blocks in the JDZ, natural gas, or the EEZ.

-SEO's selling target may be in the $10 range based on comments by David Bovell. SEO stands for Sir Emeka Offor. He is the former Chairman of ERHC and holds over 305M shares.

-From Platts news on 7/1/09..."Industry sources also say the Addax deal may pave the way for Sinopec to buy out Houston-based ERHC's significant holdings in the JDZ."

-We may be on the radar of fund managers due to the conferences from the last two years.

-Over the last 3+ years, negligible dilution of only 0.4%.

-ERHC has filed a form 8-K announcing the date of the Annual General Meeting as April 27, 2010.

-From farrell90...More circumstantial evidence of a commercial oil discovery in the JDZ:
-ERHE doubled the square footage of their Houston office
-JDA is seeking bids for additional JDZ seismic studies
-Chevron has notified the JDA of its intent to move to
second exploration phase
-Sub-surface team and development group evaluating oilfield
production possibility
-API 28 - 32 oil discovered
-drilling has gone "remarkably well"
-Phase 2 JDZ development may be announced by May 2010
-Additional well, Oki East, was drilled on block
4 JDZ. JDA only required 2 wells in JDZ block 4.
Previously posted...
-JDZ oilfield security
-Prazeres announcement of significant oil and gas
-Addax advertising for oilfield professionals
-FSPO or FLNG vessels scheduled for JDZ

-Posted by ajaxxx_99... I was just told the elephant was one block of condensate with a specific gravity of 45....I assume it was blk 4.

-Posted by Fishdog... There's a lot of oil in Bl 4. The problem is overcoming the engineering problems posed by high pressure in an offshore environment. The good news is the reservoir dynamics that promise a greater volume of oil than expected. The gas is a plus.

-Posted by balance_builder... Significant quantities of oil have been discovered with the recent drilling campaign (sorry, no links to attribute to...just personal DD).

-Addax has hit a giant gas find with the third well in the current campaign in the joint development zone between Nigeria and Sao Tome & Principe - adding to the two previous gas finds exclusively revealed in the last issue of AOG.
Senior sources say the Deepwater Pathfinder is thought to have uncovered around 1 Tcf of gas with some liquids, with the Lemba well on Block 3. Pre-drill reserve estimates were put at 184m bbl.
Addax's previous well - Kina on Block 4 - uncovered a similar amount of gas in two reservoirs. The Sinopec well in Block 2 has also discovered around 1 Tcf.
Sinopec, which also owns Addax, is already talking about development options for the gas.
"It is disappointing in some ways. When you add the current results to those of the Chevron well in Block 1 it looks like this is a gas rather than an oil basin. But with the Chinese appetite for energy it doesn't really matter," said one senior source.
As previously disclosed, the Chinese firm is already looking at a possible LNG plant in Sao Tome & Principe but it is also possible that the gas could be tied back to the Marathon plant on Bioko Island.
A methanol plant in Sao Tome & Principe is another option being considered. (AOG - Oct/09)

-STP EEZ - For the first time Sao Tome and Principe has put on the market the oil blocks of its exclusive economic zone (EEZ).

-The National Petroleum Agency of São Tomé & Príncipe (ANP-STP) on behalf of the Government of São Tomé and Principe has awarded ERHC Energy 100 percent working interests in Blocks 4 and 11 of the São Tomé & Príncipe Exclusive Economic Zone (EEZ). In addition to the two Blocks already awarded, ERHC has rights to acquire up to a 15 percent paid working interest in two additional blocks of its choice in the EEZ.

-The government of São Tomé and Príncipe, with Angolan help, plans to establish a national oil company. The new company is to assure local ownership over the expected upcoming offshore oil production. Although two areas with substantial oil production potential have been identified off the São Toméan coast - in the country's exclusive zone and in the joint development zone with Nigeria - the archipelago has not yet begun to produce oil. Government expects that this will happen in the next two or three years.

-Sao Tome, March 26 (Lusa) - Sao Tome and Principe is negotiating a major infrastructure program that could be worth up to $5 billion with a group of Dubai businesses, Prime Minister Rafael Branco confirmed Friday.

-Potential for pre-salt oil in the EEZ, such as is off the coast of Brazil. Here is an article that shows a seismic study is planned near EEZ to target pre-salt oil! http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36565661

-P. Dimmock, the EEL CTO, mentioned at the end of the EEL AGM discussion in December 2008 the real possibility of pre-salt discoveries in the STP/EEZ.

-ERHC Energy is exploring possibilities for strategic alliances with their technical partners on future initiatives in the JDZ and elsewhere. The discussions are at a very early stage, but they are hopeful that they will be able to extend upon their mutually beneficial partnerships.

-ERHC Energy Seeks Listing on AIM Market of the London Stock Exchange
HOUSTON, January 20, 2010 – ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of West Africa, today announced that it has commenced the process of seeking a listing on the AIM Market of the London Stock Exchange.

-ERHC has signed a non-binding Memorandum of Understanding (MOU) with Circle Ltd. and Excel Exploration and Production Ltd. to negotiate investment in and acquisition of working interests in the Eremor Marginal Field (OML 46). The Eremor Field is located in approximately 3 meters of water off-shore Nigeria. The discovery well, Eremor-1, encountered three oil and gas zones, the most prominent of which is the D-03 reservoir with 43 feet of net oil sand. It was re-entered for testing in 2005 with the D-03 reservoir testing 2,200 barrels per day of oil with API gravity of 22.0, a low gas to oil ratio and no water. Excel was awarded a 100 percent interest and operatorship of Eremor in 2003.

-Previous estimates for OML46:
-The cost of entry is just under $2M and the cost to
first oil is just under $10M making this a low cost
route to early cash flows.
-Up to 10 million barrels are reckoned to be
recoverable.
-net pre-payback on Eremor, for example, at an oil price
of $50 per barrel is $25 per barrel.

-ERHC, through its locally incorporated subsidiary, ERHC Energy Nigeria Ltd., has also entered into a non-binding MOU with WellTest Integrated Services Ltd. to negotiate the acquisition of a controlling equity interest in WellTest. The company provides well testing, production engineering and procurement services to Nigeria's oil and gas industry.

-ERHC sponsoring 3rd Annual Sub-Saharan African Oil, Gas, Mineral Development Conference to be held on April 29-30, 2010 (Houston, Texas). http://www.energycorporateafrica.com/conference_2010/conference_flyer_2010_English.pdf

-ERHC Energy Explores Sub-Sahara Africa
03.02.2010
http://www.thisdayonline.com/nview.php?id=167608
ERHC Energy Incorporated, a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of West Africa, is set to expand from the Sub-Sahara to Cape Town. In the just concluded Nigeria Oil and Gas Conference held in Abuja, Ejiofor Alike spoke with key officials of the company.

Mike