In a demonstration of its resilience even on low volume, ERHE traded back up to $0.70 today, a gain of 6.87 percent and $0.045 that amounted to $5,536.40 for the ERHC On The Move portfolio of 123,040 shares.
It was only the second time in recent months that the stock has closed at $0.70 or above, and it came after a disappointing series of articles and emails concerning the final decision investors await on the award of oil blocks in the Gulf of Guinea.
The inherent value of ERHC Energy's assets won out today over the lassitude and incompetence of the Nigeria-Sao Tome and POrincipe Joint Development Authority, which failed to post a promised press release on newly-revealed delays of its JDZ block awards and frustrated investors who drove the price down to $0.645 earlier this week.
Most of the gain came late in the session, when the price moved quickly from near the day's low of $0.65 to $0.665, $0.67, $0.68, $0.685, $0.69, and finally to $0.70 on a burst of quick trades that ecnompassed close to 80,000 shares. The final volume was a low 919,871, which is still about double the one-year average.
Despite repeated promises, the promised press release had now shown up on the JDA homepage (www.nigeriasaotomejda.com) at 5:45pm. JDA spokesman Sam Dimka told Raging Bull poster orangeandwhite0 the press release had been sent to London for posting on the Website yesterday.
A Monday evening report from The Punch of Nigeria quoted a mid-level JDA official as saying that ExxonMobil had been given until April 19 to decide its two 25 percent preferential options in Blocks 2 through 6 of the Joint Development Zone.
A series of emails, however, indicated that date was wrong but was April 9 instead. An article in This Day Online on Tuesday morning said awards might come next week. The confusion took a toll on ERHC Energy's share price, but it turned out to be-short-lived.
The stock, which had closed up at $0.705 on Monday, fell to $0.645 Tuesday morning, and then reversed itself on the later news and climbed back to $0.69. It slipped on Tuesday to $0.675, and then to $0.65 on Wednesday, before dipping briefly this morning to $0.628 and then climbing back to $0.70 in the late afternoon.
The strong performance on Thursday ahead of a stories three-day weekend appeared to bode very well for what some investors are touting as "breakout week," when the price will finally rise to reflect some of its post-awards value. ERHC Energy has rights in all five of the JDZ blocks on offer in this current second licensing round, and the most conservative estimates suggest the company will capture a minimum of 560 million barrels of oil with those guaranteed rights, and possibly far more if it wins one or more operatorships in the blocks.
A note of thanks: Your 69 clicks on the ads at right yesterday produced $12.70 in income, marking only the second time our daily income from this site has risen over $1. The average has been 3 a day, producing an average of $0.60 per day. We now are averaging 1,079 readers per day.
We will be publishing all weekend, and we wish all of you a happy Easter and a wonderful week ahead.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment