SSP, here you go, from bigshotmoon on the JDZ board.
If I may also add to your reply, I agree that the Chinese has/will offer to buy up the assets/company as I posted in post #5297. Here is why I believe that.
Looking at it from a Chinese perspective, they have been buying up natural resources worldwide with what they perceive as a weakened currency in the years to come. They want to invest this huge reserve of U.S. dollars in a market big enough where their investment doesn't impact the price precipitously like their investment in the precious metals market over a decade ago or so. Hence, the only viable investment option for the Chinese in the past decade or so has been the U.S. treasury bill/bond market. However, the Chinese have now grown increasingly concerned about U.S. Congress' voracious appetite for spending and have voiced their strong opinion. So what's the next best viable investment option that will also power their strong economy...natural resource assets!!! If the U.S. dollar is seen as a risky and depreciating asset in the near future, what choice do they have but to spend it now? The Chinese are long term planners and they see any perceived premium price paid for natural resource assets now as a worthwhile national endeavor as well as a much less riskier investment than the U.S. treasury bill/bond market in the future.
Secondly, the oil industry by its very nature is quite secretive in order to secure competitive advantage in terms of buying and selling oil rights and properties. Now add to the fact that the Chinese being very discreet by nature in their approach to personal finances & business and a compelling argument can be made in that the Chinese wants to minimize the talking grapevine as it pertains to disclosing valuable JDZ information. Thus, I conclude that a ERHE buyout of the company or selected assets is a likely outcome in the future...Offor & JDZ drilling results willing of course! The Addax buyout was a no-brainer for its assets as well as the exclusive technical knowledge of the JDZ offered by the team of Jeff Shrull & company plus the strong Western managerial expertise. I also believe that this core of the Addax group will remain long after the buyout has finalized with the usual financial incentives to encourage staying on board and to keep any possible JDZ secrets within. This is very important if a company is to become a global resource company as I anticipate more buyouts of natural resource companies down the road for Sinopec and the acquired Western managerial expertise will prove invaluable for future buyouts and labor negotiations in this part of the world where Addax have numerous ties as well as a good reputation with nearby communities. Once again, I reiterate that having a middle man (i.e. Addax) is an important business practice in Asian society such that one does not 'lose face' in business dealing. Thus, it is of paramount importance to have someone who is familiar with the Western and African cultures in acclimating to its business practices. Western Africa is a very strategic area for the Chinese to establish a foothold due to its sweet light grade of crude which is well suited to their refineries as well as being one of the most highly prospective area for oil in the world. Yes, the EEZ is very important as it relates to the potentially huge reserves as ERHE holds even more percentage rights there with even better terms than the JDZ. That is why I made the case for a ERHE/EEL/Addax merger in post #166649. ERHE has lost some leverage with the Addax buyout by Sinopec but the ERHE/EEL merger still remains an enticing combination for Sinopec for all the reasons discussed in that post.
I believe that Sinopec wants to control the JDZ as well as the EEZ. Acquiring Addax was a huge move in that step. Removing Anadarko is another piece added to the full picture. Will CVX be the next domino to fall? Possibly ... if economies of scale are not to CVX's liking. Taking out the U.S. registered companies is a viable game plan not only as global competitors but also as way of minimizing the grapevine for SEC regulated companies that need to disclose information publically to their shareholders. Yes, Sinopec is a NYSE company but they are a major FOREIGN company and not U.S. registered where the rules of disclosure are not as closely monitored and/or easily enforced. Hence, I believe that Petrobras will play more of a major role in the JDZ/EEZ territories than CVX in the not too distant future as they are also a foreign company (Brazil). In addition to the Lusophone connection to Sao Tome, China has a growing relationship with Petrobras in the pre-salt territories in offshore Brazil. Petrobras' extensive deep water experience in the pre-salt territories will prove invaluable here as the EEZ has deeper depths than the JDZ area.
On the other hand, Offor is a risk taker his whole life and to sell the company before he maximizes its potential does not seem to match his mindset. He will likely analyze a deal after drilling in the JDZ before deciding on how to proceed. If so, he may just sell the JDZ assets only in order to maximize his EEZ assets. For ERHE shareholders to profit from this scenario, a special dividend may be presented or use the money to buy a promising producing asset for the ERHC Energy holding company shell to go along with its prospective EEZ assets. Offor may also feel that he has more to gain in maintaining a relationship with Sinopec in the JDZ as it also increases his bargaining leverage elsewhere via his Addax connection (now Sinopec) through Starcrest (OPL291) and the natural gas project via Chrome. Also, the Chinese may view Offor as a frontman for them in getting future deals in Nigeria and may not wish to break that business relationship so quickly. I can easily see Sinopec and Offor in a continuing symbiotic relationship in the future as they do respect and understand each other. However the chips may fall, we are all following Offor's coattails; thus, it is really Offor's call to make in terms of ERHC Energy's future. It is my great hope that the ambitious drilling program in blocks 2,3 & 4 this year will satiate all our financial needs and that our fondest dreams will come to fruition whether by buyout or by long term stock appreciation via proven oil producing assets.
AI
