ERHC Energy Inc (ERHE)

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Sinopec after more oil. Look at the price per proven reserve!!!

Cnooc, Sinopec Said to Mull Devon’s Caspian Oil Stake

Feb. 19 (Bloomberg) -- Cnooc Ltd. and China Petroleum & Chemical Corp. are considering bidding for a Devon Energy Corp. stake in an Azerbaijan oil field that may fetch as much as $3 billion, said two people with knowledge of the matter.

A Chinese purchase would add to $18 billion of energy acquisitions since December 2008 as the nation scours the globe for resources to feed the world’s fastest-growing major economy.

Devon’s share of proved reserves at Azeri-Chirag-Gunashli was 64 million barrels of oil as of Jan. 31, 2009, up from 58 million barrels a year earlier, said company spokesman Chip Minty.

Based on that figure, the Devon stake is worth about $1.3 billion, said Biju Perincheril, an analyst at Jefferies & Co. in New York who rates Devon shares at “buy” and owns none. A price of $3 billion would be $45 per barrel of proved reserves, “which seems rich to me,” he said.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aIPdm4A8f0kI&pos=4