REALITY CHECK
to the garbage I am reading stated as fact. Anyone who begins to believe the bs about Sinopec trying to delay things to simply bleed out ERHE has no comprehension of the oil industry or this situation. Sinopec is worth 67+ billion dollars and is controlled by the Chinese government with dollars to burn. They could burp out a quarters profit and buy out ERHE at any time if they wanted it that bad. They only want OIL and in large discoveries. They have to go after OIL fast and furiously. That is another reason why they will drill in Phase II without delay. China needs oil in the future to run their economy just like the US and they have the money to buy the control over it. They will search (drill) for the oil wisely and studiously just the way they are. They are not sitting around playing silly games to pick up very minor shares from a 235million market cap ERHE who has a free ride. It is a simple loosing scenario for them to do that. Yes, let's piss off both the STP govt. and Nigeria for a hope ERHE has no other options.....?? Your kidding, right?
ERHE has been spending a lot of money in the past few years because they can (not to mention the raid situation which is now completely done). If the delaying game ever got serious, ERHE could go into sleep mode and drastically cut expenditures at the drop of a hat. They have no production to slow down, no widgets to build. They could out last any drilling delay game Sinopec tried to do easily. On top of that, Sinopec does NOT control what ERHE does with the rest of their rights. With the two 100% rights in the STP, the options are wide open to increasing their cash by out right selling one or both 100% blocks. They can also obviously make strategic alliances to another player which, by the way, they have proven they can do.
Don’t get me wrong, I am not saying Sinopec is going to come clean any time soon and say they found 10Billion barrels but it is an absolute joke that anyone would think or espouse that this mega giant Sinopec would waste time playing delaying games they can’t win for a relative peanut position of ERHE. There is a much bigger picture which I doubt they have lost sight of.
In all reality, Sinopec simply asked for a 6 – 12 month extension to wisely study their results to make the best decision possible for their next steps. They received the 6 months and they may not even need to use all of it. They probably thought they wanted 3 more months to study the info so they asked for 6 – 12. It really is not that big of a deal in the long run.
And finally, with the rumor of Total entering the picture, that is pure bonus and it would be a good thing for all players involved in the JDZ but it is not “needed” in the slightest. Just like the AKPO field started by it self and developed into the many well infrastructure that it has become, the JDZ could do the same thing as a stand alone infrastructure between the blocks given the right discoveries. The gas finds in the initial shallow drilling is pointing in that direction. Someday we will know more but it is obvious that they haven’t given up at this point.
Good luck all
