from RB
Here's a DD Re-Post for the benefit of our new ERHC shareholders:
###Newbie DD### Since we are seeing a boatload of new ERHC faces on the board I thought it might be a good idea to give them a start in knowing what they invested in or what they looking to invest in.
ERHC isn't your basic fly by night stock. It has survived and come out ahead after great turmoil. It has focused its entire purpose to becoming a player in the Joint Development Zone (JDZ) which is shared 60% with Nigeria and 40% with Sao Tome and in Sao Tomes Eclusive Economic Zone (EEZ).
To get you started, the following LA Times article is a must read. It gives a pretty good understanding of ERHC's history and what they accomplished in their negotiation.
ragingbull.lycos.com
ERHC almost bit the dust in 2001 with failing negotiations with Sao Tome (STP). Bring in Sir Emeka Offor, a Nigerian Billionaire who bought out the majority share of the company. It is most interesting to note that Mr. Offor holds great political influence with the presidents of Nigeria and STP. The following is a brief synopsis of ERHC's (Chrome Energy) majority shareholder from ERHC's website:
"Sir Emeka Offor has served as the chairman of the board of ERHC since February 2001. In addition to his duties as chairman, Sir Emeka Offor is currently chairman of Chrome Consortium, chief executive officer of COS and vice chairman of African Express Bank PLC, positions he has held at various times since 1995. Apart from owning majority interests in these companies, Sir Emeka Offor has majority interests in aviation and insurance companies. Sir Emeka Offor is the sole manager of Chrome, the Company’s majority shareholder. In addition, Sir Emeka Offor is a director and sole shareholder of COS, a company which provides management, administrative and consulting services to the Company."
Emeka Offor put CEO MBA at the head of this US company that is managed through Nigeria. Here is an article authored by Barry Morgan of Upstreamonline oil news. Note that CEO MBA wants ERHC to emerge as an E & P company in the West African region:
ragingbull.lycos.com
Ok, now Mr. Offor needed somebody inside the oil world to go about brokering deals for ERHC. I believe he wanted somebody who knew this region well and wouldn't be swayed by the negotiating tactics of the monster oil companies involved in the soon to be bidded on blocks in the JDZ. Bring in Richard Matzke as a special advisor to ERHC (i.e. broker for oil deals):
ragingbull.lycos.com
The bidding round in the JDZ with 9 blocks on auction got underway in April of 03 and concluded on October 18, 2003 with the following results:
ragingbull.lycos.com
Prior to the beginning of said described bidding round, ERHC had negotiated their rights (after several negotiations) with STP and walked away from the table with the following:
Message 19044677
All companies bidding in the JDZ had to meet the techinal and commercial testing of the Joint Development Authority (JDA--who are responsible for administering the JDZ) before their bid was considered successful. The technical and commercial testing pretty much amounted to the bidder having the experience or capability of deep offshore oil production, the ability to pay for the huge signature bonuses involved, the ability to finance their operations IF they were to win the bid and a work committment schedule. It is very noteworthy to include that ERHC bid $60 Million dollars for each block 1 and block 2 above and beyond their preferential rights.
Now, while all this is in the mix, the US reports they are looking into building a deep water port and enhancing the air strip on STP. Two years ago STP's president (Menezes) indicated the US would be building a military base on their island.
independent-media.tv
ragingbull.lycos.com
While the bidding process in the JDZ is underway and the JDA is busy at finalizing the licensing....STP is busy preparing for their own bidding round to begin following the JDZ round (later this year). It is extremely important to understand that ERHC's rights in the EEZ are double that of in the JDZ. Two full 100% blocks with no signature bonus monies due...and two 15%'ers. The EEZ has yet to be 3D'ed by PGS, but is said to hold many billions of barrels of crude. Some speculators have indicated that STP is sitting on the mother load.
ragingbull.lycos.com
There have been many written articles speculating the results of the bidding process in the JDZ while in wait for the conclusive results which are expected in the middle of this Month. Here are a couple of the articles.
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(Note: the above article referencing the ERHC/AHC JV was partially denied by AHC later)
The link below is about the last written article we have on the JDZ:
ragingbull.lycos.com
The deep offshore spudding in the Gulf of Guinea is almost 84% successful. These are enormous numbers in comparison to the rest of the world. The JDZ/EEZ are surrounded by world class oil reserves already discovered. In fact, part of block #1 in the JDZ sits on the APKO OPL 246 field which is a world class.
In summary, ERHC hold huge rights in some of the most prime oil land in the world. We currently wait for the bidding round results. It has been alleged that Barry Morgan will be preparing an article following the conclusion of this round that indicates ERHC will become a major oil company in the W. Africa area and beyond. Best yet it sell for a mager $.515 per share. Please view the following link for my valuation of ERHC:
ragingbull.lycos.com
Disclaimer: I am a skeptic of OTC/BB stocks. I sufferred a major loss approximately one year ago (RMEC) in a OTC/BB and I watch this stock extremely closely. To date I can say this co does not operate like your typical pump and dump OTC company. They don't seem to care much about the current PPS. They don't put out any fluff news. As Red says, Offor underhypes and overdelivers. Not too many OTC stocks make it much past the starting line. This is the one IMHO. If I see potential problems with the direction of this stock.....you can count on me to state my concerns on this board.
Note: I'm not looking forward to trying to post this post with all the links (Lyco's doesn't like links). If the first try doesn't succeed, I will try again but will put spaces after each period in each link provided. You will have to cut and paste to your address bar and then delete the spaces after the periods.
Balance
P.S. Welcome to the RB ERHC board. We have much to look forward to in the coming years (IMHO). |
