JDA Issues Press Release, Says Awards Will Be 'Soon'

Here's the press release issued in the last few minutes by the Joint Development Authority:

PRESS STATEMENT

TOWARDS THE CONCLUSION OF
2004 LICENSING ROUND

Following the requisite correspondence and meetings between the ExxonMobil and the JDA, ExxonMobil has, in line with the settlement agreement responded on the exercise of its preferential rights. Under the settlement agreement, ExxonMobil can exercise its preferential rights in any two blocks whenever acreage awards are made.

2. As a result, the Joint Ministerial Council (JMC) will meet soon to finalise the award of the five blocks in the 2004 JDZ Licensing Round.

3. The JDA wishes to place on record, its appreciation to all stakeholders for the level of interest that has been sustained all through the period.

Nigeria-Sao Tome and Principe
Joint Development Authority
Abuja, Nigeria
14th April 2005

"Soon" can mean a lot of things in Africa, and especially to the JDA, which once last year interpreted it as three to four weeks, but then never revealed its choices for another six months. Investors who have hoped the JDA would name a date certain may now be disappointed.

The press release also leaves the impression, as we opined last week, that ExxonMobil may be able to obtain acreage in the Sao Tome Exclusive Economic Zone.

The wording, "ExxonMobil can exercise its preferential rights in any two blocks whenever acreage awards are made," seem to be carefully written to avoid any limitation on those rights, which were earlier thought to apply only to the acreage awarded in the Nigeria-Sao Tome and Principe Joint Development Zone. While this is not confirmation of our belief, it does appear supportive.

Several posters on Raging Bull, led by the odious the tuneman, are arguing that the wording reopens the current blocks to ExxonMobil. The company itself, in a rare statement about its plans, ruled that possibility out several weeks ago.

The wording is another painful rebuke to SwingingK, who just this morning - for the fourth time since last September - assured investors that his sources had verified that the JMC is currently meeting. The news release, of course, says they will meet soon, not that they are meeting.

For investors, it may soon become important to hear also from Sao Tome and Principe President Fradique de Menezes, who was responsible for the delay of the awards last year, and who provided the only accurate statement about the process that was heard for the next eight months.

At that time, Menezes, while hopping on an airplane, tossed a remark over his shoulder to a reporter who'd asked about the JDA awards in the 2004 licensing round, saying the blocks would have to be rebid. The statement was roundly dismissed on Raging Bull, and dozens of other indicators were appropriated to show that the awards would occur shortly. Only Menezes was correct.

It is critical to know where he stands now.

At 2:18pm EST, the share price stands at $0.60 and volume is 1,487,100 shares.