Saturday, August 26, 2006

Economist Ad Challenges Scientists On Irish 'Free Energy' Machine

In what may be the latest and most public reiteration of the "free energy" theme that accompanied the discovery of "cold fusion," Irish scientists are challenging top scientists to test a magnetic device that they say can power cars, machines and millions of other products at no cost for fuel.

Executives of Steorn, an Irish firm, have taken an ad in Britain's The Economist to challenge a jury of scientists tio test their free energy device. Pictured, L. to R., are CEO Michael Daley, CFO Michael Moriarty, and Marketing Manager Richard Walshe. The inventor, not shown, was Sean McCarthy.
Joe Shea/The American Reporter

The discovery, which has already drawn replies through a full-page ad in the Economist, from more than 3,000 scientists who want to test it, seemingly defeats the Second Law of Thermodynamics (no energy can be created or destroyed), and the inventors say it operates at 285 percent of efficiency.

Like a novel gas called HH0 invented by St. Petersburg, Fla., engineer Denny Klein, the device is also drawing skeptics ready to crush the p.r. wave that is currently ascending from Ireland.

Here is a company press release:

Steorn develops free energy technology and issues challenge to the global scientific community

London, 18th August 2006: Steorn, an Irish technology development company, has today issued a challenge to the global scientific community to test Steorn’s free energy technology and publish the findings.

Steorn’s technology is based on the interaction of magnetic fields and allows the production of clean, free and constant energy. The technology can be applied to virtually all devices requiring energy, from cellular phones to cars.

Steorn has placed an advertisement in The Economist this week to attract the attention of the world’s leading scientists working in the field of experimental physics. From all the scientists who accept Steorn’s challenge, twelve will be invited to take part in a rigorous testing exercise to prove that Steorn’s technology creates free energy. The results will be published worldwide.

Sean McCarthy, CEO of Steorn, commented: “During the years of its development, our technology has been validated by various independent scientists and engineers. We are now seeking twelve of the most qualified and most cynical from the world’s scientific community to form an independent jury, test the technology in independent laboratories and publish their findings.

“We are under no illusions that there will be a lot of cynicism out there about our proposition, as it currently challenges one of the basic principles of physics. However, the implications of our technology go far beyond scientific curiosity: addressing many urgent global needs including security of energy supply and zero emission energy production. In order for these benefits to be achieved, we need the public validation and endorsement of the scientific community”.

“We’re playing our part in making that happen by throwing down the gauntlet with today’s announcement – now it’s over to the scientists to ensure that the real potential and benefits of our technology can be realised.”

Following the validation process, Steorn intends to license its technology to organisations within the energy sector. It will allow use of its technology royalty-free for certain purposes including water and rural electrification projects in Third World countries; details are to be announced later.

Here's a comment on the technology from the Scientific American blog:
Comment from: Cyril Smith [Visitor]
There are some aspects of physics that are never taught and therefore never considered. If you add the magnetic field (B) from a bar magnet to one from a current carrying coil wound on that bar (deltaB) the field everywhere is a the sum of two terms, B+deltaB. Energy density goes with the square of the field, so expanding the square of the sum we get B^2 +2BdeltaB + deltaB^2. B^2 is the original energy from the magnet. deltaB^2 is the energy from the coil. 2BdeltaB is excess energy gained from where? That is not a trivial amount of energy, and it can be shown that it comes from the quantum domain. It is ignored because over a full cycle it is generally not available to us. Can an electro-magnetic theory which ignores magnetic energy shuttling about within our machines be considered complete? Is it not possible that someone will eventually discover how to tap into that ignored energy flow? August 22, 2006 @ 11:59

Friday, August 25, 2006

Upstream Online's Morgan Says Drilling Could Commence This Year

For good reason, Mark St. Amour has criticized me on I-Hub for not posting either a story by Barry Morgan in UpstreamOnline nor a report from Platt's that offer more positive observations on JDZ prospects than Tuneman got from Addax Petroleum's P.R. department.

The Morgan report says drilling of test wells in blocks where ERHC Energy has an interest could commence as early as this year - not 2008, as the Addax folks told the odious Tuneman.

My excuse: I haven't been reading I-Hub very much lately.

Mark notes that I am not currently holding ERHE, which is true. I have sold my VION, which enjoyed a nice 25 percent gain, and will be back in the market for ERHE at $0.40 or below in the next week.

I couldn't find the Platt's post, so I won't be running that until I do.

Here is the Upstream article:

UPSTREAM NEWS JDZ - Chevron targets drilling to firm up Obo-1 discovery

CHEVRON may resume drilling at the Nigeria-Sao Tome&Principe Joint Development Zone Block 1 within three months, writes Barry Morgan.

Depending on rig availability, Chevron, alongside partners ExxonMobil and the Dangote-Energy Equity Resources-Afren tie-up, will be anxious to determine the commercial extent of the Obo-1 discovery, said sources within the Abuja-based Joint Development Authority (JDA).

Drilled in March, the Obo-1 wildcat hit hydrocarbons. Samples are still being analysed but at least two wells are committed under the work programme.

Drilling is also planned this year for blocks 2, 3 and 4, operated by Sinopec, Anadarko Petroleum and Addax Petroleum respectively, but the consortia are still "shopping around for rigs".

The JDA this week confirmed all budgets and work programmes had been approved.

Production-sharing contracts for the remaining joint development zone blocks 5 and 6 have yet to be signed because partners still have to finalise the joint operating agreements.

Operatorship of Block 5 has gone to private Iranian outfit ICC-OEOC, while Block 6 has gone to Nigeria's Filthim-Huzod.

Houston independent ERHC Energy has a 15% stake in both licences.

Examination of these two remaining licences will be uppermost on the agenda of the new JDA chairman Ado Yakubu Wanka, who took office late last week, and will also head up the Finance&Administration Department.

Also appointed last week was fellow Nigerian Morrison Anthony Fiddi, a Florida-trained geologist, who will lead the JDA's Monitoring&Inspections Department.

Wanka replaces Sao Tomean Carlos Gomes under Article 10 of the JDZ Treaty, which requires the chair to be rotated annually between Nigeria and Sao Tome.

Drilling Setback: Not Until 2008, Addax Says

The odious Tuneman, a longtime ERHC pumper, tries to disguise bad news as good in a post to I-Hub today celebrating an email response from Addax, our partner in Nigeria-Sao Tome Joint Development Zone blocks 2, 3 and 4.

While the bad news is evident - most investors had hoped for a drill rig to start exploring Block 4 by Fall 2007 or earlier - the good news is that a consortium of drillers that includes Chevron (but not Exxon Mobil, at least by name), Anadarko, Addax and Sinopec are scouring the world for a drillship, and have hired a former drilling coordinator for Chevron, Jeff Schrull, to run their show.

Here is the exchange posted to I-Hub:

Here is my e mail response from my contact at ADDAX in regards to my question:"Could you please advise me if Addax has firmed up any plans or has outlined any schedules for drilling in the Nigerian Sao Tome' Joint Development Zone? Or could you give me an update as to any activities in this area? I was impressed with you company's acquisition of rights in this area ( JDZ) but I have been unable to find any follow up on these activities.:


Thank you for your email and your interest in Addax Petroleum.

In terms of our involvement in the JDZ, Addax Petroleum recently hired a deepwater specialist to head our JDZ exploration group. Jeff Schrull was formerly with Chevron and had, in fact, headed up their involvement in the JDZ. Jeff has subsequently filled out his team and they have been working on an exploration plan for Block 4. In addition, we have taken the lead to coordinate the operators of Blocks 1-4 (including Anadarko, Sinopec, Chevron and ourselves) in order to jointly contract a deepwater rig to drill the first 6 exploration wells (3 of which are on Block 4). As you are probably aware, the market for deepwater rigs is very tight these days - but we would anticipate contracting a rig in the coming months and expect to commence drilling the 6 wells as early as 2008. We will also continue looking for a "rig of opportunity" and are prepared to drill the first well on Block 4 earlier than 2008 should a rig slot become available.

Thursday, August 17, 2006

No Rigs For Drilling JDZ Until Summer 2007, Dow Jones Says

There is little chance of finding an available rig to drill in Blocks 2, 3 and 4 until the middle of 2007, a Nigerian reporter for Dow Jones Newswires said today.

The article by Vincent Nwanma quoted unidentified officials of the Nigeria-Sao Tome and Principe Joint Development Authority, which manages the concessions in the Nigeria-DRSTP Joint Development Zone in the Gulf of Guinea.

Earlier, ERHC Energy partner Sinopec, the seventh-largest oil company in the world and China's second-largest, told media that it would probably not drill until Fall 2007, so the news is not news to most ERHC investors.

Here is the report:

Lack of Rigs May Delay Nigeria, Sao Tome Drilling
by Vincent Nwanma
Dow Jones Newswires
Wednesday, August 16, 2006

LAGOS Aug 16, 2006 (Dow Jones Newswires)

Drilling activities in oil blocks 2, 3 and 4 in the Joint Development Zone owned by Nigeria and Sao Tome may not get underway until the middle of 2007 because of a shortage of drilling rigs, a person familiar with the situation said Tuesday.

"All the companies are making arrangements to get rig slots," said the source at the Joint Development Authority, which oversees the joint development zone.

The three blocks were among five the JDA awarded in a mini bidding round in 2004. The other two are blocks 5 and 6.

Negotiations between the JDA and the winners of blocks 2, 3, and 4 were concluded early this year, while the winners paid $145.6 million last May for signature bonus for the blocks.

Revenue accruing from resources in the common maritime boundary between Nigeria and its island neighbor Sao Tome and Principe are shared in the ratio of 60:40, in favor of Nigeria.

The blocks are located in deep offshore, in the maritime boundary between Nigeria and its island neighbor.

"Rigs for deep offshore are limited because there is a high demand for them," said the source.

Regarding blocks 5 and 6, the source said the winning companies were making efforts to conclude their joint operating agreements as well as their negotiations with their technical partners.

Chevron JDZ Ltd. and its partners on the block 1 completed exploration on the first exploratory well in the joint development zone last March.

Chevron JDZ Ltd., owned by Chevron Corp. (CVX), has a 51% share in the block, while Esso Exploration and Production Nigeria-Sao Tome Ltd., a unit of Exxon Mobil Corp. (XOM), and Dangote Energy Equity Resources have 40% and 9%, respectively.

Tuesday, August 15, 2006

DOJ Suit Is Likely Snagged, But SEC Probe Of Trading Could Yield Fruit

The news that Sao Tome Attorney General Arlindho Pereira, whose report in ERHC was formally repudiated by the governments of Sao Tome and Nigeria, has been booted out of government failed to boost the share price of ERHC Energy (OTC BB symbo: ERHE), which is languishing at $0.42 while my catcher-upper, VION Pharmaceutical, jumped 20 percent since last week to $1.20.

Why isn't ERHE moving?

Fears that the search warrant served by the FBI on ERHC's Houston Offices may yet lead to an indictment still trouble some investors, although I have discounted the probability of an indictment, and would put it at about 40 percent now.

What may concern some even more, though, is that the fallout from Sao Tome probe report may yet lead to a searching examination of trading patterns in ERHC, and that those could yield paydirt for Federal prosecutors.

There is little doubt - and the company itself has indirectly said - that ERHE shares have been manipulated.

And recent events suggest that the SEC may be keen to get their hands on some principals in the GEECF case, including two of ERHC's largest investors whose names have cropped up in the context of the Rep. William Jefferson scandal due to their connection with GEECF, which is alleged to have been cozy with Sao Tome officials.

There is at least some hope that the sources of that manipulation will be exposed by the SEC, and while it would initially have a negative share price impact when first revealed, it would undoubtedly be healthy for the stock when the news was absorbed and the share price could grow normally.

Even anonymous remailers like those in Finland and elsewhere are now cooperating with U.S. law enforcement, particularly where large-scale money-laundering and frauds are concerned, so there will be very little room to hide if the SEC does come down on the market manipulators who have cost ERHC Energy investors so much money.

Monday, August 14, 2006

Centurion Grabs A Little More Of Block 4

Centurion Energy International, the Canadian junior partner in Block 4 of the Nigeria-Sao Tome Joint Development Zone, has upped its percentage with the purchase of 2 percent of overall equity from Hercules Corp., which was 75-percent-owned by Centurion, to give it 9.5 percent of the promising block.

The equity sold for $4.4 million, according to a press release issued by the company:

Centurion Acquire Additional Exploration Interests in the Sao Tome Joint Development Zone in West Africa

CALGARY, ALBERTA--(CCNMatthews - Aug. 11, 2006) - Centurion Energy International Inc. (TSX:CUX) (AIM:CUX.L):

Centurion is pleased to announce the acquisition of an additional 2% working interest in Block 4 in the Sao Tome Joint Development Zone (JDZ). This will increase Centurion's interest in the Block to a total of 9.5%.

In order to acquire the additional interest, Centurion will purchase a 25% equity holding in Hercules Petroleum Limited (Hercules) for a cash consideration of US$4.4 million. Since Centurion already owns 75% of the Hercules equity, this company will therefore become a wholly owned Centurion subsidiary once the transaction is completed.

Block 4 covers an area of 212,000 acres and is located in the heart of the JDZ, with water depths of approximately 1800 to 2200 meters. The JDZ represents a potential deepwater extension of the highly prolific Niger delta hydrocarbon province and to date the region has been under explored due to a historic maritime boundary dispute. Over the last few years, however, the JDZ has been opened for exploration and Chevron have recently announced an oil discovery in the JDZ Block 1, which lies immediately to the north of Block 4 and on the same geologic trends.

A 3D seismic survey has already been acquired on Block 4 and the data is viewed as encouraging since it indicates the presence of several large structures with the potential to hold significant reserves volumes. Consequently, the Block 4 Joint Venture is attempting to secure a deepwater rig to drill the first exploration well on the concession in the second half of 2007. This well would be the first of three commitment wells, which are scheduled to be drilled on the Block during the Phase 1 of the exploration licence.

Centurion is a Calgary-based oil and gas exploration and production company, engaged in oil and natural gas activities in Egypt, Tunisia and the Sao Tome JDZ.

For the purposes of AIM Rule 11, this announcement has been reviewed by Centurion Energy's Vice President - Engineering and Production, Robert C. Macaulay, B.Sc., a Petroleum Engineer of more than 20 years' standing, a member of the SPE and a registered Professional Engineer in the Province of Alberta.

Friday, August 11, 2006

Sao Tome President Dumps Atty. Gen. Who Probed ERHC

Sao Tome's newly-reelected President Ferdinand de Menezes has unceremoniously fired the country's Attorney General Adelino Pereira, whose rogue two-month investigation of ERHC Energy concluded its 74-page report with a plea to the U.S. Dept. of Justice and America's Securities Exchange Commission to investigate the company's political contributions to De Menezes and possible gifts and business relationships with other island officials.

The firing may have been a fatal blow to the U.S. investigation led by Washington, D.C.-based U.S. Atty. Mary Ann Dimke, who traveled to Houston for the service of an FBI search warrant and questioned the company's then-CEO Walter Brandhuber, who left the company late last month.

For most ERHC investors, as Cleopatra says in the tragedy of Antony & Cleopatra, "Tis a consumnation devoutly to be wished."
The news came in this brief report from Portugal's RCN radio service:

Just re-elected, President Menezes sacks oil-probing Attorney-General

Sao Tome, Aug. 11 (Lusa) - President Fradique de Menezes, in his first action since formal confirmation of winning a landslide re- election, Friday sacked Attorney-General Adelino Pereira, who had led an officially discredited corruption probe into the recent awarding of offshore oil exploration blocks shared with Nigeria.

A presidential aide announced that Pereira, once considered close to de Menezes, had been replaced at his own request for "personal reasons".

Pereira, whose US-backed probe last year was boycotted by Nigerian officials and disavowed last March by the STP president and government, had been replaced as attorney-general by Magistrate Roberto Raposo, according to a presidential decree.

Pereira, the presidential aide, said had expressed his "desire to continue his studies abroad".

Made public in December, the corruption probe, incomplete due to Abuja's refusal to cooperate, did not establish any wrongdoing in the awarding of five Joint Development (JDZ) blocks in May 2005 but said the process was marred by "irregularities" and fell short of international standards.

Several mid-tier US companies were sidelined in the JDZ bidding process that saw China's Sinopec and Nigeria-based Addax of Switzerland gain highly prospective properties in tandem with US- headquartered, but Nigerian controlled, start-up ERHC Energy.

Last May, both the FBI and the Security and Exchange Commission, acting on sealed search warrants, carted away documentation from ERHC's Houston office.

No charges have been brought against the company, which gained hefty rights in the JDZ in the mid-1990s in exchange for helping Sao Tome set up its first oil-related institutions and carrying out seismic studies.

US major Chevron, which won JDZ Block 1 in an earlier auction, recently announced it had struck oil and natural, in still undetermined quantities, in the first JDZ exploratory well.

De Menezes' sacking of Pereira came less than 24 hours after the STP Supreme Court of Justice formally proclaimed him the victor in the islands' July 30 presidential poll.

The high court Thursday validated official final results of the election, in which more than 35% of the 91,000-strong electorate abstained, showing the incumbent took nearly 61% of ballots for a better than 20-point lead over his closest rival.

Former Foreign Minister Patrice Trovoada, the son of a former president who was backed by most of the islands' opposition parties, placed second in a field of three candidates with almost 39%.

De Menezes is expected to take office for a second five-year mandate on Sept. 3 under a revised constitution that limits presidential powers.

He has promised close collaboration with the government of Prime Minister Tomé Vera Cruz, who formed his cabinet after pro-Menezes parties won legislative elections last March.

The islanders are to return to the polls Aug. 27 for municipal and Principe regional votes that have been successively delayed for more than a decade.


Thursday, August 10, 2006

ERHC Press Release: 10-Q Reveals $41 In Cash Assets

A press release this morning from ERHC Energy, carried by Market Wire and available via Dow Jones services, highlights the vast growth in cash assets and interest income since the sale of part of the company's equity in blocks 2, 3 and 4 of the Nigeria-Sao Tome and Principe Joint Development Zone.

The release holds no surprises:
Financial Results

HOUSTON, TX -- (MARKET WIRE) -- 08/10/06 --

ERHC Energy Inc. (OTCBB: ERHE) today reported financial results for the third quarter ended June 30, 2006.

As of June 30, 2006, ERHC reported cash assets totaling $41.3 million.

During the three months ended June 30, 2006, ERHC had a net loss of $621,474, compared to a net loss of $223,628 for the three months ended June 30, 2005. Interest income increased by $527,732 due to the significant cash balance related to proceeds from the sale of participation interests in Blocks 2, 3 and 4 of the Joint Development Zone (JDZ) during the first quarter. General and administrative
the same period last year, due to an increase in legal costs, accounting of employee stock options in fiscal 2005, and increased travel and administrative expenses of doing business internationally.

For the nine months ended June 30, 2006, ERHC had net income of $24.2 million, compared with a net loss of ($8.2 million) for the nine months ended June 30, 2005.

"The company has strengthened its financial standing due to the infusion of cash from the sale of participation interests in the JDZ," said Nicolae Luca, acting chief executive officer. "Though our general and administrative costs have risen, we believe that engaging top legal counsel to defend the interests of the company and its shareholders is money well spent."

Mr. Luca said the company remains pleased with the progress being made by Addax Petroleum and Sinopec Corp., which have entered into production sharing agreements with ERHC.

According to Addax Petroleum, which has been designated the operator of Block 4 of the JDZ and has a participating interest in JDZ Blocks 2 and 3, seismic data acquired over each of the Blocks is presently being analyzed to delineate potential drilling locations.

Wednesday, August 09, 2006

New 10-Q, But Not Much News In ERHE SEC Filing

A 10-Q filed today for the second quarter of 2006 sheds little new light on ongoing problems and advances at ERHC Energy (OTC BB symbol: ERHE).

The Good news? We still have assets of $46.7 million versus debt of just $6.7 million, and current liabilities of $12.5 million.

In accounting for equity in Joint Development Zone Blocks 2, 3 and 4, the company said that "Upon sale of the participation interests, the Company removed the entire cost of the related Blocks due to the uncertainty surrounding their unproved interests."

The company has still not achieved adequate financial controls, meaning that money can stolen without such thefts being readily visible to shareholders and accountants. However, it is working to fix that problem, the company said:

Based on our assessment and those criteria as of September 30, 2005, management concluded that the Company did not maintain effective internal control over financial reporting as of as a result of material weaknesses in (a) internal controls surrounding corporate governance, and (b) internal controls surrounding the accounting for common stock issuances.

A material weakness is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.

The operations and activities of this company have essentially been focused and limited to (1) continuing efforts to secure its working rights in the JDZ and EEZ; (2) funding the associated contractual obligations related to securing its rights )primarily legal and technical support); (3) funding a limited office staff consisting of the CEO, the CFO and an administrative manager and associated rental obligations. With the exception of (1) above, these were no operational activities that required the institution of complex internal controls; however, but an appropriate level of internal controls were necessary to conform to rules and regulations to which the Company is subject.

The Company has now perfected its interests in the JDZ and is poised for full operations. Accordingly, the Company has made changes to its staff to add the skills necessary to achieve full operations.

Monday, August 07, 2006

ERHC Seeks A New CEO

Sir Emeka Offor is apparently advertising to find a replacement for Chief Executive Officer Walter Brandhuber, who has announced his departure. The ad, posted on I-Hub by angryasian, is from the Business Journal, he said.

The ad is not surprising, but the debate that has stirred the board back to life is. For reasons that are difficult to fathom, a lot of posters seem to find the ad unbelievable and think the poster made it up.

Here is the ad, as posted:
Chief Executive Offi cer
Chief Financial Offi cer
ERHC Energy Inc. (ERHE: OTCBB), a
Houston-based independent oil and gas
company with valuable international assets,
is seeking exceptional candidates for
leadership positions.
Must exhibit an entrepreneurial spirit, international
mindset, negotiating skills, the ability to productively
manage complex relationships with strategic
partners and a commitment to create and deliver
signifi cant value for shareholders, investors and
Submit resume to

Wednesday, August 02, 2006

Addax Buys Overt's 5 Percent Interest In Block 4

Reaffirming the value of concessions in the Nigeria-Sao Tome and Principe Joint Development Zone, ERHC Energy's partner in Blocks 3 and 4 today revealed in a press release that it has acquired additional equity by picking up Overt Ventures' 5 percent share of Block 4 for $10 million in cash plus a signature bonus payable to the Joint Development Authority of $4.5-million.

The news initially moved investors to bump up the share price $0.01, but recent trading in very low volume has dropped it back to $0.41, off a cent on 619,571 shares traded by the close.

The volume was pumped up by just two trades, at $0.41.75 and $0.42, respectively, of 100,000 and 200,000 shares, shown as Buys on the ADVFN system.

Here is the Addax press release:

Addax Petroleum Increases Interest in Jdz Exploration Block

Calgary, Alberta, April 13th, 2006 – Addax Petroleum Corporation (“Addax Petroleum”) (TSX: AXC) announces that it has increased its participating interest in Block 4 of the Nigeria/Sao Tome and Principe Joint Development Zone (“JDZ”) from 33.3 per cent to 38.3 per cent by acquiring the 5 per cent participating interest held by Overt Ventures Ltd (“Overt”). The assignment of Overt’s interest to Addax Petroleum has been approved by the Nigeria/Sao Tome and Principe Joint Development Authority (“JDA”). Addax Petroleum is the operator of Block 4.

Commenting on the acquisition Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said, “We believe that the JDZ offers world-class exploration potential. This acquisition follows our strategy of investing in the JDZ as a core exploration area for Addax Petroleum.”

In return for obtaining Overt’s 5 per cent participating interest in Block 4, Addax Petroleum is obligated to pay:

* US$10 million to Overt as consideration for the interest, and
* US$5 million to the JDA comprised of a US$4.5 million signature bonus associated with the acquisition of the 5 per cent participating interest in Block 4 and an assignment administration fee of US$0.5 million.

Block 4 covers a gross area of 857 square kilometers (211,773 acres) and the water depth ranges from approximately 1,800 to 2,200 meters. Seismic data acquired over Block 4 is presently being analyzed to delineate potential drilling locations.