ERHC Energy Inc (ERHE)

[chcr]

ERHC post from another board
By: balance_builder
19 Sep 2004, 07:45 AM EDT
Msg. 63537 of 63587
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I remain......

Very upbeat on this investment and its possibilities. The time factors have been downright ugly and our 11 month wait for awards continues. I remain patient as I am informed that any African dealing requires patience and lots of it. Even one (if not the) top officials of the JDA recently told me to "be patient!!!!". This tells me there IS light at the end of the tunnel and some serious dealing is taking place.

It is very important for the JDZ to become a successful round for both involved countries top officials as much attention has been given for these countries to have "worked together" in these diputed maritime waters instead of taking the normal avenue...i.e. of war and fighting. The award of block 1 hardly signafies success as outlined by Norval Scott, an African energy analyst:

http://ragingbull.lycos.com/mboard/boards.cgi?board=ERHC&read=45051

So what would make this round appear successful to the rest of the world???? A major US oil company involved??? Barry Morgans latest article references XOM particiapation in 3 of the blocks on auction (B-1, B-2 and B-4):

http://ragingbull.lycos.com/mboard/boards.cgi?board=ERHC&read=62959

Actually, I believe Swingings DD might have found a solution for success as outlined in this DD he posted on 6-30-04:
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By: swinging---k
30 Jun 2004, 10:13 AM EDT
Msg. 44829 of 63536
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Summus:

I'm not in my office today, so I don't have access to International Long Distance for free... But based on the last two conversations with Gomes's secratary, These guys are being presured not only to give a Block 2 award, but to have the entire JDZ finalized ASAP, I heard something about the ENTIRE JDZ being formally decided by the end of July...So there must be a shitload of wheeling & dealing going on, which is probably why our pps has been gradually rising... imho all that I'm aware of.

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The above post was followed up by the following post, posted 9-17-04 which indicates perhaps only 3 blocks will be going to rebid:

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By: swinging---k
17 Sep 2004, 09:36 AM EDT
Msg. 63150 of 63536
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UPDATE:

PSC for Block 1 is signed.... all parties agreed & inked on the dotted line on Wed afternoon... I'm sure BM couldn't wait to come out with his article... My guy did not want to comment on Block Awards, but said Jokingly "You Americans know everything anyway" & then said "The rebid will only include 3 Blocks." Only 3 blocks will be Rebid!!!! I didn't expect that...

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With the worlds eyes watching how this Joint effort progresses you can bet the parties involved will MAKE it work. Obasanjo, the loudest voice in the effort has another disputed zone that might go the "working together" route instead of war/fighting (Cameron/Nigeria). All said, success is a must and with it looking like XOM got back on the playing field AND a good possibility of up to 5 more awards being released near term, the JDZ effor WILL be determined a success by the oil patch and the worlds eyes. Obasanjo and Menezes will look like hero's and lets not forget the party putting it all together led by our very own Carlos Gomes. Keep in mind, he followed Umar as the chairman of the JDA....so all this extended waiting does not rest on his shoulders.

We have had some good discussions regarding ERHC's revenue potential once oil is discovered and the pps that could follow. Even our head basher Mongo can place high financial rewards for longs if this thing gets out of the starting blocks.

You can bet that Carlos Gomes and the JDA faction are under enormous pressure politically as well as oil industry economics to get awards released. With Libya and Nigeria putting a total of 42 blocks on auction between the end of this month and the beginning of 2005, the dilution of available oil land will diminish the value of the JDZ to some degree going forward:

http://ragingbull.lycos.com/mboard/boards.cgi?board=ERHC&read=61360

http://ragingbull.lycos.com/mboard/boards.cgi?board=ERHC&read=60872

There has been some "speculation" that Offor will show and interest in both of these countries EEZ's. If his willingness to bid in the JDZ above and beyond our massive preferential rights is an indication of what he has in mind for our minnow.....I say the chances are very good that he will extend his reach in W. African and beyond. He obviously has a very sound relationship with Obasanjo and is a major political party contributor as well as an African Leadership Forum donator of which Obasanjo takes a lead role in. This entire play is extremely political and those in the the right party will have success. Offor is obviously in the right party and so are we as longs about to celebrate the birth of his new oil company. He (Offor) commented some time ago that you would hear of his oil company. I believe his voice will be heard loud and clear when it becomes obvious his company is going to become a major oil company in a part of the world known to hold world class oil reserves and a KNOWN importance to the energy securing of the United States.

Some on this board cleary disbelieve that the oil could be in production as early as 2006. Malarky I say!!!! If we can get awards released near term (and I believe we will) we have already been told that NBL likely sewed up awards with their committment to a drilling rig to the zone.

"Noble sealed the deal by committing a rig for initial operations in the ultra deep play."
http://ragingbull.lycos.com/mboard/boards.cgi?board=ERHC&read=59764

If Noble has a drilling rig committed and PXD has one of the records for fast tracking deep offshore oil development (10 month record) we could conceivable have discovery as early as the end of Q-1 2005 and we could be in the production phase as early as 2006:

http://ragingbull.lycos.com/mboard/boards.cgi?board=ERHC&read=43963

http://ragingbull.lycos.com/mboard/boards.cgi?board=ERHC&read=58035

Oh yeah....this little 3 employee company ran by a proven successful billionaire business man is exactly where I want to put my investment monies. It is screaming of a near term take off. Anytime you put the largest oil consuming nations largest oil company in the backseat to partner (PSC'S) with a no revenue, no equipment company who holds only rights as described in the treaty minnow OTC/BB oil company.....your OBVIOUSLY holding something of great value. Phil Nugent probably said it best in his quote in the LA Time article when he stated,

"ERHC is in the catbird seat," says Phil Nugent, a Houston-based oil and gas consultant and a major shareholder in the company. "We're going to get our pound of flesh and I think we're due it."

Or perhaps it was this expert that said it best in the same article:

"Andrew Latham, a West Africa expert for Wood Mackenzie, an energy consulting firm in Edinburgh, Scotland, says the Sao Tome-ERHC agreement is far out of line with industry standards.

"There are plenty of examples where a small firm will get in early and help promote a country's oil acreage. Their rewards are relatively minor " Latham said. "I've never seen a company get a stake like ERHC obtained in Sao Tome."

Bottom line.....I am convinced I am in the best possible investment available at this time and the long wait will be made worthwhile in a big way.

Time for a powerwalk. 41 degree in MI on this sunny beginning.

Balance