Here is latest update on ERHC done by Bay Street. Take for what it is worth but sounds real good...
Environmental Remediation (ERHC,Nasdaq BB: $1.56)
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(Featured July '97 @ $0.92)
ERHC is continually full of surprises in terms of everything this small
company has on the go. ERHC really cannot be considered just another oil
and gas junior. The environmental remediation side of the company could
easily be it's 'bread and butter', unaffected by fluctuations in oil and gas
prices. Then there is the Panama Canal offshore refueling concession which
looks like a company-maker in itself. And the joint venture with Sao Tome
to explore the largest concession in the Gulf of Guinea should make ERHC the
most unique junior in the industry.
In a press release February 18, ERHC announced the 70% acquisition of
VenVirotek, to obtain access to its Louisiana N.O.R.M. disposal sites and
federal and state permits for the disposal of saltwater (brine) and N.O.W.
(naturally occurring waste) by products. VenVirotek holds one of only two
approved licenses in this area which would otherwise easily take 2 years and
approximately $2 million to obtain.
In this same release ERHC mentioned it was already negotiating with the
Department of Energy for a significant part of a huge saltwater disposal
project in Louisiana. It seems ERHC has indeed been successful in these
negotiations and is already receiving shipments of "brine water waste" (see
release below). Revenues (and profits) from this new project will be in
addition to those received from VenVirotek's existing business: "''We
anticipate net income of approximately $300,000 in 1998 from VenVirotek
without the expansion and development of its solid waste facility,'' added,
Noreen Wilson, Chief Financial Officer" plus ERHC intends to greatly expand
the business in the future. Environmental Remediation is a growing and
lucrative business where few companies have the experience or permits in
place to take advantage of increasing demand. ERHC is positioning itself to
capitalize on these opportunities. ERHC is still a front-runner for a $12.5
million remediation project in Mexico, which could begin soon after a
contract is announced.
ERHC is already generating revenues from its environmental remediation
division; revenues from the Panama Concession could begin to flow in the
next few months. If rumors of heavy short positions on the Nasdaq BB are
true, attempts to cover positions could cause a sharp upturn as ERHC
continues to release more and more positive news.
Speaking of news, in addition to last weeks Upstream article on ERHC on the
possible addition of oil/gas projects in Ghana, Togo & Cameroon, the latest
edition of Oil and Gas Investor (March, Hart Publication) contains a very
lengthy article on companies with projects in the Uinta Basin. The article
mentions ERHC and the use of the BAPCO tool in Uinta, quoting ERHC COO: "We
picked the Uinta Basin for our first major effort because of its enormous
hydrocarbon concentrations and poor primary recoveries", says Jim Callender,
chief operating officer in Lafayette, Louisiana, who as Unocal's Corp.'s
drilling chief had developed that firm's proprietary extended reach
horizontal drilling system." The article goes on to state: "ERHC made a
major deal with the M-3 Corp., a Ute Indian company.... to work over 350
wells. The State of Utah has estimated the wells remaining reserves at
about 45 million barrels with conventional workovers, but ERHC thinks it can
raise that to above 70 million barrels."
With so much positive news and so many articles appearing on ERHC, the
discovery of this company as a rather unusual investment opportunity cannot
be too far away. If the ERHC team comes back from West Africa this month
with more offshore concessions in the Gulf of Guinea, some front page
coverage could be in order - which I believe is in order in any case due to
the Sao Tome JV! |
