ERHC Energy's volume has fallen from nearly 13 million shares on Monday to just 353,000 so far today as the price rose from a low of $0.275 on Monday to $0.35 as of 3pm this afternoon.
Update, 4:17pm EST At 3:15, a Buy and a Sell, each of 262,107, went off at $0.3542 and $0.3475. The Buy was last. The same amount was traded after the bell on Wednesday, bringing volume for the day up to 1,098,745 shares.
Update, 3:59pm EST A 116,000-share buy in 12 trades closed the day, all going off at $0.35.
The price rose as virtually all the big oil companies lost $1 or more and crude prices slipped to about $58 on world markets due to ample inventories against the deep chill in America's Northeast.
"Crude oil for January delivery fell $1.89, or 3.2 percent, to $58.10 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Prices touched $58, the lowest since Dec. 1. Oil fell 2.2 percent this week and is 32 percent higher than a year earlier," Bloomberg news reported.
Energy Intelligence released a story this morning on the Sao Tome Attorney General slamming the JDZ awards, but that intel is four days old now.
The odd thing about today's trading is that the price has generally moved up on sales, not buys. So far, Buys trails Sells 164,209 to 179,719, according to ADVFN, after Buys outpaced sales all morning. Update After the Close: There was a strong reversal in the selling trade as the day closed, with the final tally being 347,716 Buys to 205,719 Sells, with 10,000 shares undetermined. The closing Volume (including aft6er-hours trades, was 547,531 shares.
The trading seems to me to show that the controversy over the Sao Tome probe report has largely been discounted by investors, permitting the share price to rise towards normal levels.
There is probably some concern among short-sellers that approval of PSCs within the coming week for two or more of the five Joint Development Zone blocks could occur, as predicted by oil minister Rafael Blanco of Sao Tome. With ERHE holding equity rights in all of the blocks, that would only mean good news for shareholders and problems for short sellers.
ERHC On The Move holds 93,000 shares at an average of $0.364, so we are not back in the black yet. We do expect to get there, and somewhat beyond there, by the end of next week.
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