Replies to post #184665 on ERHC Energy Inc (ERHE)

[RKT989]

Red good post but so called EEL numbers on Block2 well are not fact....

[mrogop]

red

just use dollars per mcf vs. per bbl and you will come up with the current number.

it is skewed adversely because of the current oil price which is not remotely tied to fundamentals...it has become a financial asset class and a proxy for the dollar. it is traded blindly dollar down oil up and vice versa...does one think the fundamentals from yesterday (oil down to 78+-) and today up to nearly 80.00 changed that much in 24 hrs...it's price has nothing to do with fundamentals now.

the old rule of thumb was 6:1 gas to oil....then 8:1 and now 16:1. the old ratios were fundamentally based...

1MMCf=$5.000 compared to 62.5 bbls at $80

put differently if the 8:1 ruled today natgas would be $10.00

[sneak-attack]

Red: 1 Mcf of gas equals 166.67 barrels of Oil. So 250 Mcf of Gas = 41,667 barrels of Oil.


Sneak

[kaydee]

Block 2 - Gas Factor is certainly strategic.

Considering that the EU is seriously thinking about gas supplies for Europe from other than Russia and is planning a gas pipeline across the Sahara and under the Straight of Gibraltar this is just more welcome future supply.

Good post, Red

[spp119]

Red,

You may remember that it was I who argued the case for non-dismissal of the importance of gas on this thread....and had stones thrown my way.
Alas, so far the only concrete evidence we have (and only from the single well at Blk2-Bomu) has gas turning up.....but in pitiful amounts.

(Still, a possible next round of drilling there....and more importantly next spring's drilling on Blk 1, may offer up commercialisation opportunities via a cluster development).


As for the actual volumes....Unlike you to get mixed up with the numbers;

1 Cubic Foot(ft3) = 0.1781076 Barrel (Petroleum)(bbl)
http://www.rigzone.com/calculator/default.asp#calc

Accordingly, the "purported" 200-250Bcf estimate discovered at Bomu (which is certainly not purported to me) amounts at most, to roughly 44.5Mboe . And that, sadly, is a far cry from the 274mmbbls (mean) last estimate given out by the Addax/NSAI team for Bomu.

Now....about Kina (and Lemba), I have come to fully understand the meaning of a "tight hole"...

regards,
spp119

[bayfisherii]

Red,


I agree with everything you say except one thing. The 250 bcf of gas in Bomu that you speak of (not sure where that # came from) is valuable, but it is not valuable as a marketable product in that amount and in that location. 250bcf is equivalent to about 250 million decatherms. As of 10 minutes ago the NY spot posting for next month was about $5.51/decatherm. The gas in the JDZ would have a much lower value due to the cost to get it to a viable market.

The real value of the gas in Bomu is as a gas-driver for producing oil from the other zones in the JDZ. It is my very un-expert opinion that there is a method to the drilling pattern and that the reason it took so long to start (beyond the obvious time it took to get deepwater rigs) drilling is the general partners got together and developed a strategic drilling plan. After all per this board this was one of them most seismic researched areas of all times. That could also be why any information coming out is so tight. There could be financial penalties if info leaks out and can be tied to a partner.

Now if they found 20 Bomu's then the gas would have a real value and you would see Shell or CVX come in and partner up with a LNG plant.

IMO,

BayFisher

PS: Mark sorry I did not call the other night, tied up with my 13 years old and football

[texsun2003]

Hey Red, nice post. Seems I remember posts/conversations years ago that the gas found would be the icing on the cake for ERHE. The push today for cleaner burning fuel (nat. gas) makes that even more applicable to potential profits for ERHE. Or, as some of the oil people on this thread have indicated, it could be injected to increase oil production. Either way, gas could very well be a bonus to us.
Best to you and all ticket holders on this wild ride called ERHE...Ron