While ERHC On The Move believes that the award is delayed and will probably not be made before April 19, the combination of this note, the article from This Day Online and the appearance of significant new buyers has persuaded us to cancel all sell orders on our portfolio of 123,040 shares.
Update: 9:34am EST ERHE dropped $0.05 in the first two minutes of trading on volume of more than 600,000 shares. At 9:32am EST, the bid stood at $0.652 and the ask at $0.655.
Update: 10:28am EST As the first hour of trading comes to a close, the share price has bounced back from its $0.645 low and is trading at $0.665 bid x $0.67 ask on high volume of 2,099,953 shares.
Update: 2:37pm EST Volume has slowed dramatically as the share price has risen from earlier lows. At 2:36pm EST, the price stood steady at $0.67 bix x $0.675 asked on volume of 2,800,845 shares, with most sales at the ask.
The confusing saga of The Punch and a contradictory story in This Day Online continues, however. The new information is almost as disheartening as the last, except for the fact that if new buyers continue to emerge as in recent days, the delay gives the share price of ERHC Energy (OTC BB symbol: ERHE) more time to rise.
Here is the note from Sam Dimka, official spokesman of the JDA:
From: Sam Dimka [mailto:samdimka@yahoo.co.uk]
Sent: Tue 3/22/2005 4:02 AM
Subject: RE: Urgent Sam Dimka
The Punch gave an in accurate report. Nowhere in Mr Gomes's presentation did he mention any deadline for XOM to exercise their rights.
For the avoidance of doubt, the JDA is operating strictly according to the terms of the settlement agreement. When the company is notified to exercise their rights and they request for additional information they have up to 30 days to respond. XOM was given additional informatiom on the 9 March in which case they have up to 9 April to exercise their rights.
AS SOON AS THEY EXERCISE THEIR RIGHTS which could be before 9 April, JMC will meet to finalise the awards. NO one is pushing the JDA and no one can push the JDA. As a responsible corporate organisation we must operate within the terms and conditions that are legal and professional. Let's wait and see what the next couple of days have to offer.
Thanks
Sam
A second note from Dimka has been received by ERHC On The Move reader ArtK4K, reiterating the earlier information in a slightly more succinct form (Editor's Note: We do correct obvious misspellings and grammatical errors in any communications we post).
Here is the note as posted on the ERHE message board on Raging Bull:
Thanks for your mail. Carlos was quoted out of context. The JDA is operating srictly in line with the settlement agreement. No extension has been granted to ExxonMobil. The company, according to the agreement have up to 30 days from [when] they are given additional information. In this case [that was provided on] 9 March, 2005. Therefore, they have up to 9 April 2005 to exercise their rights. If they do [so] before, JMC will convene to finsalise the awards.
Thank you
Sam Dimka
According to the recipient of the first note, orangeandwhite0, writing on the RB ERHE board, the Joint Development Authority may update its Website with accurate information concerning any deadlines within the next day.
Here is the note from orangeandwhite0 on that issue:
Called the JDA and spoke with the Secretary of the JDA. I don't know his name but his phone number is 011 234 9 524 1064. He said there will be PR on the JDA Website by tomorrow morning and perhaps within next couple of hours. He said that XOM asked for more information on March 9 and that they have 30 days from that date to exercise (April 9th). He said to me "since you have called me I will tell you that XOM met with JDA this week and meetings went well and we expect them to exercise at any time." He also said that he thinks that JMC will meet before end of this month and perhaps very soon. He told me that he is responsible for scheduling the JMC meeting and that it will occur a few days after XOM exercises. Again, he reiterated that XOM will most likely not take the full time to exercise since they have now been given all the information that they needed and that everything was pretty much ironed out in the meeting with XOM and JDA this week. He also told me that they are very sensitive to the media and they want to give out accurate information. I think that it is a good sign that he made this comment and still said that he expects JMC to meet by end of this month and that could even be in next few days. I am sure they received a ton of complaints last night by email regarding the Punch article.
Everything is on course, folks. This could happen at any time.
25 comments:
The crucial point here is that ExxonMobil has NOT been granted any unfair or extra-contractual advantage, as you might infer from the inaccurate "Punch" article. I was unaware that additional information had been conveyed to ExxonMobil on March 9th; Mr. Dimka's email clarifies the reason for the subsequent extension to April 9th (N.B. not April 19th as stated by "Punch"). Obviously the JDA is proceeding according to the contractual obligations specified by the final JDZ treaty settlement, which means that the April 9th deadline is a hard, legally binding deadline. My compliments to the JDA for acting professionally in this difficult matter.
How nice of you Joe to cancell your order. Do us all a favor and sell and finaly get out of here. Have you no shame?
How dare you call yourself a reporter or even a journalist. You rush to post on your BS blog unsubstantiated and uncorroborated information. Why didn't you verify your info BEFORE posting it on your blog? Explain that Joe?
I contacted Exxon today. I called Investor Relations. I asked if they had exercised their rights in the Joint Development Zone. He said "yes" in Block 1.
So I asked him what about the other blocks? He said no they had not exercised their rights. He said it was a long way from being resolved. He said that the highest bids in the second round came from companies who had no drilling expertise. So I asked if there was a possibility that the second round would be rebid and he said yes.
He made it sound as if no winners have even been decided on in the blocks in the second round. Just to note though, I was the one who brought up the possibility of a rebid. He didnt. He was responding to my question. Also, he might not have been kept up to date on the actual winners. Im assuming the top brass at Exxon was shown who was awarded the blocks so that they can then make their selections. But he probably was not kept in the loop.
The bottom line is Im not sure if I really believe him or not. He might have been told to say certain things as a form of posturing as to take some of the heat off Exxon.
It would sure help if the JDA puts out a news release on this topic to clarify things.
He (Exxon IR) definitely did say it was a long way from being resolved.
It's indeed unlikely that the person in ExxonMobil IR would know what is transpiring in Abuja. Reports of what both JDA spokesman Sam Dimka and the JDA Secretary have said indicate substantial progress in recent meetings between the JDA and XOM. A rebid at this point would be a disaster for the JDA, Nigeria, Sao Tome, and all concerned, and I'd say the chances of that happening are just about nil. Few companies would bother bidding in the JDZ again since all of the JDA's credibility would be lost. Finally, it's important to remember that XOM is facing a contractually imposed deadline to exercise its options, whether XOM likes that fact or not. Given that "Upstream" is widely read in the industry, XOM may be a bit peeved by the way that Barry Morgan has chronicled its missteps in the JDZ auction. XOM's irritation, however, will only worsen its situation if XOM is not careful. It's not XOM's place to comment on the other bidders, for instance; the JDA, not XOM, makes those assessments. Since Nigeria is challenging various multinational oil companies on a range of issues, Nigeria and the JDA are not likely to let themselves be bullied by XOM in this matter, especially since XOM would be in violation of contractual and international law. The JDA is clearly sticking to the law and will require that XOM do so as well.
As I mentioned I was the one who brought up the possibility of a rebid, not him. He was just responding to my question.
He basically said that the companies that had the highest bids dont have the capability to drill.
And he did say the round was a long way from being resolved.
"Finally, it's important to remember that XOM is facing a contractually imposed deadline to exercise its options, whether XOM likes that fact or not."
How do we know its a contractually imposed deadline? Is it written in any contract? We dont know if a deadline was ever written into the contract in round 2.
"A second note from Dimka has been received by ERHC On The Move reader ArtK4K, reterating the earlier information in a slightly more succinct form (Editor's Note: We do correct obvious misspellings and grammatical errors in any communications we post)."
Sorry Joe. I couldn't resist the irony.
It's also quite possible that nobody talked to XOM IR and those posts are garbage.
Another dillusional long. Any time someone posts something that doesnt jive with their viewpoint a paranoid long thinks someone is making it up.
Call Exxon yourself if you dont believe it. Call the main number, ask for IR. When you get to IR tell them you want to inquire about the Joint Development Zone in the Gulf of Guinea and more than likely they will transfer you to another person within IR that handles that area.
Then you can ask the questions yourself you lazy fool.
Who did you talk to at Exxon IR?
What is your handle on rb?
my name is tommy. i bought shares. i like puppies in the forest on rainy days!
Guys why dont you just call the Exxon IR department yourself. Doesnt that seem like the easiest solution?
You guys crack me up. You always want to kill the messenger instead of the messaggeee lol. If you want to know what the IR person said call yourself and report your findings. Its not all that difficult.
Guys Im not sure if you are aware of this but a guy named Alexander Graham Bell invented this device called a telephone. Use it once in a while.
Smoke signals are a thing of the past.
Now I know what Markvol feels like.
Geez.
So the XOM PR department is openly passing judgement about the qualifications of the bidders. Wow, with all the BS here you should sell rubber boots on your blog. You might make more than you do flippin shares.
The IR person is probably a month behind in their knowledge of the situation. Companies like to keep them in the dark so they dont release sensitive information.
Take the challenge and call for yourself. Or are you afraid to....
Maybe mommy can give you a hand.
I called XOM, the guy I talked to said he had not discussed the JDZ bids with anyone named Tommy. But, he added that if he (Tommy) likes puppies, he cannot be all bad, so maybe someone else there had told him there would be a rebid. He warned, however, not to believe everything you read on Joe's blog nor on Punch.
Why hasnt anyone reported what the Exxon IR people say. People have quoted Sam Dimka, Pioneer IR, JC (when he says anything at all lol), every newspaper in Nigeria and yet no one ever calls Exxon? They would seem to be the main people you would want to talk to.
The ball is in their court. It would only seem logical to call them.
Hey 5:00 PM, you are a liar.
Many RB posters have said numerous times that the companies with the highest bids lack drilling expertise. So for an IR person to say that is no big deal. Its a fact and we all know that. That has been posted hundreds of times on raging bull and other forums. So bottom line is there was nothing wrong with saying that. Everyone already knows that.
Give me break..."Obviously the JDA is proceeding according to blah blah blah. My compliments to the JDA for acting professionally!!!" ROTHLMFAO, Oh my god, ROTHLMFAO, Oh my side hurts...Dude or dudette pass the pipe, you have had it way to long...Osh
I suggest that you go back and review the 2001 JDZ treaty agreement, the Feb. 22, 2003, agreement between the JDA and XOM, and the April 7, 2003, administration agreement between the JDA and ERHC, all of which laid the legal framework for what the JDA is now doing.
some people will do anything to get back their shares at the price they sold them for, including lying, cheating and stealing them from you. Shorts need to cover badly to boot.
Also, the XOM IR dept. does not discuss future prospects.
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