Replies to post #13670 on ERHC Energy Inc (ERHE)

[Homeport]

Thanks for the call, Art, and to RubyMartin on RB where I pinched the article!

Bests to both and all,
Homeport

[balance_builder]

A great piece of news delivered by "THIS DAY". Some great points from the article already shared with the board.

http://www.thisdayonline.com/nview.php?id=33541

1) I like the fact that it was the JMC (Joint Ministry Council) that met yesterday. For those not aware, the JMC is the approving authority (above the JDA).

2)This is one line I don't comprehend. I have always been under the impression that signature bonuses FOLLOW PSC's by 30 days. In this article it clearly states that,

"The winners of the five oil blocks are expected to sign the agreement by mid next month."

....but then it also states later in the article in reference to the signature bonus monies,

"Winners of the five oil blocs allocated in the 2004 bid rounds are scheduled to make payment of signature bonus amounting to $283m by December 2005."


To my understanding, exploration can begin as soon as the signature money is in the hands of the the JDA!

Great news. I would like to know what the irreconciable differences NBL had but I have a feeling that will remain under the covers. The article puts the issue/problem between them and ERHC.

Ok....from my read, the JMC received the draft PSC from the JDA (which was hammered out between the JDA and operators of the blocks) to ratify said PSC. That was the stated purpose of their meeting yesterday. With the announcement of the winners being "expected to sign the agreement by mid next month" I feel comfortable that the JMC approved the draft PSC. This should be the last step before the "formal" signing of PSC's!!!!!!!

They (STP and Nigeria) clearly want their signature bonuses NOW!. Payment expected the same month as the formal signing of PSC's. This play to move forward!!!!!!

[balance_builder]

Did anybody catch this tid bit inside the article?

"At an earlier meeting with officials of Chevron, operator of oil block 01, JDA officials tried to clear all issues relating to commencement of exploration operation."

The recent indication that they "might" begin drilling in December may have resulted from the "earlier meeting" referenced in the article. I see the drilling in block 1 as a very significant event for us. A discovery announced in Block 1 changes our outlook.

This was a piece posted up on the RB this morning credit to Oilyhair. I attempted a brief search for the article and was not able to immediately find it though this RB poster has demonstrated accuracy in the past and my rush to start the days errands may have passed over the report.

"By: oilyhair
16 Nov 2005, 10:34 PM EST
Msg. 72314 of 72323
Jump to msg. #
Another article on Centurion

http://www.oilbarrel.com/home.html

The last paragraph reads:
And then there’s the company’s modest but potentially company-making stake in Block 4 in the Joint Development Zone between Nigeria and São Tomé & Principe. The production sharing contract is still being finalized on what could be a project that catapults Centurion into a different league. The JDZ is an extension of the prolific Nigerian deepwater play where discoveries are measured in the billions, rather than millions, of barrels. Interpretation and mapping of the 3D data indicates the presence of several large potentially oil-bearing structures on the block: the proof, however, will lie with the drillbit."

I've read comments from Centurion Oil that are similar to the above report. They are, in fact, very excited about this play and believe it to be "big". "Very big".

[Digdeepforsweet]

Homeport Thanks for good news... em Dig.

[oilman57]

Great news Art, Joe, and Homeport. Thanks for passing that along.