TO ALL.. Here is latest weekly update on ERHC I received from Bay Street Bidding which follows the co. Sounds great especially part of the possible huge short position on ERHC. Enjoy.... It's only a matter of time before ERHC gets known by the Street!!
Environmental Remediation (ERHC,Nasdaq BB: $1.56) *********************************************** (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!
Company Press Release
"Environmental Remediation Announces First Shipments of Brine Water from U.S. Department of Energy
Through Recently Acquired Subsidiary VenVirotek
LAFAYETTE, La.--(BUSINESS WIRE)--March 11, 1998-- Environmental Remediation Holding
Corporation (OTC BB:ERHC - news) today announced that its subsidiary, VenVirotek, received
the first shipments of brine water waste from the U.S. Department of Energy (''DOE'') Weeks
Island. DOE estimates indicate approximately 2.8 million barrels of brine water and 250,000 barrels of salvage oil are stored and leaking in a salt mine located in Houma, LA.
VenVirotek accepted over 30,000 barrels of brine water for disposal since initial shipments began last week. The barrels are transported via barge to ERHC's Houma facility for disposal into the Company's injection well. ERHC's facility can accommodate in excess of 8,000 barrels in a six hour time period. Shipments are anticipated to continue for the next nine to twelve months.
''The strategic location of the VenVirotek injection well situated on the intercoastal waterway
provides ERHC an advantage in procuring similar contracts for waste disposal,'' commented
Samuel Bass, the Company's President and CEO. Under the current contract ERHC will receive
$1.00 for each barrel and anticipates a minimum profit of 35%. With DOE estimates growing,
contracts of this type promise to be lucrative and enhance the Company's bottom line.''
ERHC recently acquired VenVirotek in anticipation of the procurement of this government project as reflected in the Company's News Release dated February 18, 1998.
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 our website at www.erhc.com.
Safe Harbor Act notice: Certain matters discussed in this news release are forward-looking
statements, as it is defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to a number of known and unknown risks and uncertainties including, but not limited to, fluctuations in the price of crude oil and natural gas, the success taught of exploration efforts, the timeliness of development activities in Texas, Utah, and the Gulf of Guinea, West Africa, changes in the political and economic environment in which ERHC has international operations, as well as availability of human and financial resources; which may cause actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of ERHC.
Contact:
Noreen Wilson, CFO
Jim Griffin, Corporate Secretary
ERHC
(516) 433-4730
or
Darrel Hackman
(303) 680-8014
or
Cynthia DeMonte
(212) 473-3700 |
