The message:
By: orangeandwhite0
09 Mar 2005, 09:29 AM EST Msg. 8481 of 8488
****UPDATE*****
Just spoke with Sam Dimka. JDA is in Meetings with XOM as we speak. All he would say is that things are going well. He again reiterated that March 18th is a "hard deadline" and that XOM could exercise their options anytime between now and then. He sounded very positive. Almost giddy. ...
With another meeting scheduled for Thursday at 10am Abuja time, the choices will be the trigger for a meeting of the Joint Ministerial Council and the announcement of awards, according to JDA spokesman Sam Dimka.
ExxonMobil was given 30 days to declare its choices in a letter from the JDA in late February, and that period ends on or about March 18. There is considerably less doubt this time around that further delays will occur, and the possibility remains open that the announcements could come as early as Friday or over the weekend.
Signs that the meetings have also encouraged investors came in Tuesday's trading, where the share price of ERHC Energy (OTC BB symbol: ERHE) moved up $0.02, a gain of $2,460 for the ERHC On The Move portfolio of 123,040 shares.
Volume, however, while well ahead of the hiostorice 495,000 daily average, was well off last week's pace, failing to top 1.5 million. The stock closed at its high of the day, $0.615. Most observers expect a gain of at least several more cents, perhaps to $0.65, tomorrow.
ExxonMobil's relationship with the JDZ was established in the 1990's, when it helped underwrite the creation of the JDZ by shooting imagery of its oil deposits in the Gulf of Guinea, and entitled the company to certain preferential rights that it has been unable to exercise until now.
ERHC Energy, the former Environmental Remediation Holding Corp., had similar rights it has already exercised in Blocks 2, 3, 4, 5 and 9, and in the Sao Tome Exclusive Economic Zone, where it can choose 100 percent of two blocks without paying a signature bonus and 15 percent of two more blocks by paying a bonus fee of 15 percent of the winning bid for those blocks. That licensing round may be delayed for up to three years, news reports have said.
The Joint Development Zone is believed to hold between 4 billion and 14 billion barrels of crude oil. As a percentage of the whole JDZ (exclusive of the EEZ), ERHE has about a 14 percent interest in the oil, or rights to about 560 million barrels at the 4 billion-barrel estimate. At Tuesday's closing crude oil price of $54.59 per barrel, that stake would be valued at US$30.5 billion.
3 comments:
Joe, the 560 million barrel figure you come up with is ver very conservative and sonwehat lazy reporting on your part.
First of all ERHE has its largest percentages in the largest blocks. So the conservative figure would bring the total to somewhere around 1.4 Billion recoverable. And thats just in the JDZ.
Here is a repost if a past news release from ERHE describing the 2D that was done in the JDZ by Western Geco.
Something to note is they identified 56 prospective structures in Blocks 1-9. 17 were prospects and 39 were leads. Western Geco estimated reserves of 14 billion barrels in the 17 prospects in Blocks 1-9. That doesnt even take into account the 39 other leads in the 9 blocks.
"Interpretation carried out by WesternGeco has enabled the identification of fifty-six prospective structures within Blocks 1 to 9, of which seventeen were defined as prospects and thirty-nine as leads. Of particular interest to ERHC, however, is the recoverable reserve potential of Blocks 1, 2 and 4. WesternGeco identified six High Confidence prospects in these three blocks alone with estimated cumulative recoverable reserves potential of 4.5 billion barrels of oil. WesternGeco used reservoir parameters similar to those known from nearby fields in Nigeria and Equatorial Guinea. Combined recoverable reserves potential of the seventeen prospects was estimated by WesternGeco to be 14.4 billion barrels of oil. WesternGeco partitioned these reserves on a block-by-block basis for ERHC’s exclusive use in the bidding and option selection process relating to the JDZ licensing round."
****UPDATE***** From RB
Just spoke with Sam Dimka. JDA is in Meetings with XOM as we speak. All he would say is that things are going well. He again reiterated that March 18th is a "hard deadline" and that XOM could exercise their options anytime between now and then. He sounded very positive. Almost GIDDY. (That was for you Mongo).
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