Did you read the press release carefully. ERHC interest in this new joint venture is .......50%....
With permission from Laurel (Bidding on Bay Street):
WHO'S IN STEP?
Lately with ERHC, I feel like the mother who believes her child is the only one in the parade in step! I cannot explain recent ERHC stock activity and am extremely curious to see how the market greets today's highly significant news. The NASDAQ BB is a miserable place to trade, and ERHC will certainly move to list on a more senior exchange just as soon as the company qualifies.
WAKE-UP TIME , AGAIN!
Investors should pay close attention to today's news release. Last
Wednesday ERHC announced the company had entered a Joint Venture with AMCO Montenegro, Inc. to Construct and Operate Strategically Located Off-Shore Logistics Center on Sao Tome, an island in the Gulf of Guinea, West Africa.
The April 15 news release stated that funding for the project would be the responsibility of AMCO.
One week later, and ERHC has announced financing of US $50 million will be provided by Jurobanka AD Podgorica of Montenegro for the ERHC/AMCO joint venture to be called "ERAMCO".
A STRONG PARTNER
ERHC is not playing games in the Gulf of Guinea. Joint venture partner AMCO and its group of companies control 51% of Jugobanka, the 14th largest bank in Europe with approx. US $3.27 Billion in assets. The Jurobanka already has a serious presence in Africa, having recently invested US$ 100 million in the Democratic Republic of Congo.
There is every indication in this news release that events are moving
swiftly to begin construction of the Offshore Logistics Centre on Sao Tome.
"Our group is in the process of purchasing a commercial bank in Sao Tome expediting the Off-Shore Logistics Centre and facilitating all future projects we undertake there" (AMCO Executive Director & Chairman, Nick Banicevic). Note, the Logistics Centre does not appear to be the only projects being contemplated for this small country.
From the April 15 news release: "AMCO and its related ABC Group of
companies, including A.B.C. AeroEngineering Ltd., possess vast experience in the design, development and construction of civilian and military airports, airport fueling and re-fueling stations, road construction, military facilities, hospitals, healthcare, business and warehouse facilities and various other industrial support structures." If you remember, one of the reasons ERHC is in the position of sharing what may be the largest offshore concession in the Gulf of Guinea is because company management is dedicated
to helping this tiny country do far more than develop its oil resources.
Sao Tome and Principe needs schools, hospitals, roads, an enlargement of air port facilities etc. etc. With the announcement of the formation of ERAMCO and financing from Jugobanka, the pieces are beginning to fall into place as to how ERHC will be able to fulfill its mandate to help the government and people of STP.
One can also see why other countries in West Africa may be interested
negotiating with ERHC and its partners for similar development projects.
ERHC CFO Noreen Wilson plans to visit several of these additional countries in May.
The evidence is out there in other examples of offshore logistical support centres - like those in the Gulf of Mexico - there is big money to be made from servicing offshore exploration/production. "In fact, there is as much opportunity for increasing revenues through supporting the drilling companies, as there is in oil production" (Sam Bass, Jr., Chairman & CEO, ERHC).
According to the news release this project will not dilute ERHC shareholder equity. ERAMCO is a 50/50 joint venture between ERHC and AMCO. It is a deal which looks very hard to beat!
News Release:
"Environmental Remediation Holding Corporation and AMCO Montenegro Announce
Joint Venture Financing of $50,000,000
LAFAYETTE, La.--(BUSINESS WIRE)--April 22, 1998--Environmental Remediation
Holding
Corporation (OTC BB:ERHC - news) today announced Jugobanka AD Podgorica of Montenegro (formerly Yugoslavia) has agreed to finance $50,000,000 (USD) to construct the Off-Shore Logistics Center in Sao Tome. Jugobanka Ad Podgorica is the fourteenth (14th) largest bank in
Europe with assets of 5.9 billion (DM) (approximately $3.27 billion USD).
ERHC's joint venture partner, AMCO Montenegro and its Group of companies control fifty-one percent (51%) of Jugobanka.
AMCO Montenegro's Executive Director and Chairman, Nick Banicevic, stated,''After visiting Sao Tome with my colleagues Mr. Abdul Rohman (President of the Group) and Mr. Narresh Kapoor (Senior Vice President of the Group) and meeting with government officials including Prime Minister Raul Braganca Neto and President Miguel
Trovoada, we are eager to move forward with financing. Our Group is in the process of purchasing a commercial bank in Sao Tome expediting the Off-Shore Logistics Center and facilitating all future projects we undertake there.''
Recently, the Group finalized the purchase of a sixty-five percent (65%) share of Banco Congolaise De Commerce Exterior in Kinshasa including its 35 branches with 1,600 employees in the Democratic Republic of Congo for $100,000,000 (USD).
''This new joint venture is a prime opportunity for ERHC,'' commented Noreen Wilson, ERHC's Chief Financial Officer,'' and places ERHC as a serious contender in West Africa without diluting shareholder equity.''
''Off-Shore logistical support is big business in the Gulf of Mexico and in other sites worldwide,'' stated Sam Bass Jr., ERHC's Chairman and CEO. ''In fact, there is as much opportunity for increasing revenues through supporting the drilling companies as there is in oil production.''
''Jugobanka requested that the terms and conditions of the loan not be
revealed at this time,'' stated Ms. Wilson, ''however, the shareholders of ERHC will be very pleased when the agreements are signed between Jugobanka and ERAMCO, the new joint venture in which ERHC is a 50% partner with AMCO.''
Environmental Remediation Holding Corporation is engaged in oil and gas production activities and environmental remediation, both domestically and internationally. This includes the development and rework of oil and gas properties, plug and abandonment services (P&A), environmental engineering and consultation, hazardous waste management (including NORM waste), non-hazardous waste clean-up, transportation and disposal, and the manufacture and distribution of waste clean-up materials.
For more information concerning ERHC, please visit the Company's website at
www.erhc.com. |
