Trading Updates: Energy Intelligence Affirms Awards To ERHC

The Energy Intelligence subscription Website is the latest to openly state that ERHC Energy (OTC BB symbol: ERHE) and its partners Noble Energy in Block 4 and Devon Energy and Pioneer Natural Resources in Blocks 2 and 3 have won operatorships in Blocks 2 and 4.

The publication's report says the awards:

... are expected to give Nigerian-owned, US-listed ERHC chunky stakes in the most popular blocks, beefed up through alliances with US companies. On Block 2, ERHC is expected to get a 35% joint stake with US Devon and Pioneer, and a separate 30% stake of its own, after exercising preferential rights acquired through a controversial deal negotiated with Sao Tome in 2003, sources say. On Block 4, ERHC will share 35% with US Noble Energy, while exercising rights to 25% under the 2003 agreement.

An earlier report from Upstream Online's Barry Morgan said ERHC would also get 35 percent of Block 3, where it is also partnered with Devon Energy and Pioneer Natural Resources.

Earlier, Scott Sheffield, the CEO of Pioneer, said he expected two blocks in the JDZ to be awarded to the company's venture "very soon."

We note that the EI report contains no mention of a share for Equator Exploration, the firm favored by fired Sao Tome presidential oil advisor Patrice Trovoada of Houston, whose father - ex-Sao Tome President Miguel Troviada - signed the accords creating the Joint Development Zone. The stock of EEL suffered a fall yesterday, with many large blocks changing hands. The decline appears to have moderated this morning. The Upstream Online report, however, indicated that the company would get a piece of one block, albeit 10 percent or less.

For traders, the visit to Sao Tome by Nigerian President Olusegun Obasanjo today and the multiple confirmation of a stunning ERHC Energy victory in the awards proces ought to translate into string buying interest, and perhaps a sharp gap up at the the open, much as we expected yesterday, when it did not materialize.

Trading Updates

Update. 9:35, 5/20/05: We closed at $0.695 after 328 trades, with the closing Bid $0.695 and the closing Ask $0.705. Volume barely topped 2 million at 2,067,300. There were 1,297,356 Buys and 797,300 Sells, with 60,600 unidentified.
The perspective on that is that a lot of investors sold their shares far too cheaply,
and they were quickly snapped up by bottom-feeders.

Buying was dominant at the close, with 26 of the last 41 trades between 2:18:05 and 3:59:52 Buys totaling 66,312 shares, and 13 Sells totalling 50,200, with the last two trades totalling 10,000 both unidentified.

Update. 2:39pm, 5/20/05: The price is $0.69, the Bid, and the Ask is $0.695, with volume now nearing 2 million at 1,947,300 shares.

In 291 trades recorded by ADVFN as of 2:21pm today, 1,235,044 were Buys and 661,800 were Sells, with 50,500 unidentified. There is more action on the Sell side in the last half hour.

Update, 2:20pm EDT, 5/20/05: The price is $0.69, the Bid - a cent better now - and the Ask is $0.695. Volume is 1,947,300 shares.

Update, 2:20pm EDT, 5/20/05: We're at $0.695 with the 3:15pm Surge still almost an hour away. Volume is 1,942,100 shares, and the Bid and Ask are $0.68 x $0.695.

Update, 2:16pm EDT, 5/20/05: The price hits a new low of the day, $0.68, as the Ask stays at $0.695.
Update, 2:12pm EDT, 5/20/05: In 267 trades recorded today, 1,216,664 were Buys and 584,100 were Sells, with 30,000 unidentified as of 1:53, per ADVFN, which suffers from a 15-minute delay. There are a lot more blocks of 20K - 30K (lots of those) Buys than there are similar Sells.

The price is now $0.695, the Ask, while the Bid is $0.69. Volume is 1,896,600 shares. The guy who sits there and says "Take it down" is winning for the moment, as he won't have to buy your shares for a couple of bucks.

Update, 1:55pm EDT, 5/20/05: We're a tiny bit higher, at $0.705, the Ask, with the Bid also slightly better, at $0.70, as wait-weary and delay-wary investors await the good news from Sao Tome. Volume is cresting to 1,830,300 shares.

Update, 1:46pm EDT, 5/20/05: The price is at the low of the day, $0.697, the Bid, with the Ask lower, too, at $0.704, and volume just 300 from 1.8 million, at 1,799,700 shares.

Update, 1pm EDT, 5/20/05: Another snooze, and I lose a cent. We're at $0.70 now, with volume climbing to 1,752,800, a million more than yesterday. The Bid and Ask are unchanged at $0.697 x $0.705.

Update, 12pm EDT, 5/20/05: At noon, we're at $0,71, with the Bid at $0.705 and the Ask at $0.705. I took a snooze, and didn't lose; my Mom came to me in a dream and gave me a big smile and said, "After." There is a cupola in my future. At 12:02, the volume is 1,427,600.

Update, 10:45am EDT, 5/20/05: Volume is 1,247,300, with all else unchanged.

Update, 10:37am EDT, 5/20/05: Volume is better at 1,230,800. The price is $0.70 and the Bid improves three-tenths to $0.70, then slips back three-tenths to $0.697, while the Ask at $0.705 slips to $0.70.

Update, 10:34am EDT, 5/20/05: The first reports from Sao Tome should be circulating soon, possibly durng the noon hour. Volume has climbed to 1,132,300, but nothing else is new.

Update, 10:30am EDT, 5/20/05: The volume runs to 1,119,300 and the price climbs back to $0.70, but the Bid stays at $0.697.

Update, 10:27am EDT, 5/20/05: Nothing moves.

Update, 10:25am EDT, 5/20/05: 500 shares trade. The price and $0.697 Bid, and the Ask, are unchanged.

Update, 10:22am EDT, 5/20/05: The price slips below the opening price, to $0.697, as the Ask falls to $0.70 and volume rises to 1,092,900 shares.

Update, 10:21am EDT, 5/20/05: We break a million and keep gong to 1,066,300 shares, with all other indicators unchanged.

Update, 10:19am EDT, 5/20/05: We're close to 1 million shares traded in the first 47 minutes at 996,297. The price is $0.70 and the Ask $0.705. Perhaps the Sao Tome meeting is coming to an end, as it's 3:15pm over there.

Update, 10:14am EDT, 5/20/05: Just 2K shares trade, bringing volume to 983,097. The Bid is back up to $0.70 once again, and the Ask $0.705.

Update, 10:10am EDT, 5/20/05: Volume is 981,097 and the price is $0.705. The last time volume was high but the price was so tightly rangebound was in early November, when Chairman Sir Emeka Offor went to the market to purchase shares after he settled 63 million on First Atlantic Bank. At that time, the market makers refused to move the price, and by selling strategically small amounts, the price was kept artificially low as the accumulation occurred. With talk of a buyout and accumulation at present, it doesn't seem to be far-fetched to say this may be happening again; note, please, that there are no non-expired Form 144 filings that would permit selling by insiders at this time, so it is not coming from the company, and the bank's stock registrar will not let it sell for another six months. Thus, this is likely strategic manipulation to acquire and accumulate large blocks of ERHE. Be alert.

Update, 10:01am EDT, 5/20/05: Volume hits 892,797 a half-hour into the trading day. This stranded price reflects selling and uncertainty about the Sao Tome talks, but remember: historically, just before the big news, this stock gets a rough shake. It's had quite a few in the past several weeks, so there should be little more to discount from an already battered price. Volume is now 959,097 and the price is just $0.705, with the Bid now falling to $0.697 and the Ask at $0.705.

Update, 9:59am EDT, 5/20/05: Volume is just 2K higher at 834,597, and the price, at $0.70, the Bid, is unchanged. The Ask stays at $0.705.

Update, 9:56am EDT, 5/20/05: The buying weakens, and so does the price, to $0.70. There is no "bad" news to justify the tight $0.015 price range. Volume is 832,547 and we expect a decline below the open over the next few minutes.

Update, 9:53am EDT, 5/20/05: The price slips back to $0.705 as volume jumps to 827,547. The Bid slips to $0.70 and the Ask to $0.705.

Update, 9:50am EDT, 5/20/05: The price is $0.71, with all else unchanged. We're not sure how the price changed without a Buy or Sell.

Update, 9:49am EDT, 5/20/05: The price slips to $0.705, the Bid, with the Ask still at $0.71 and volume hitting 807,047.

Update, 9:48am EDT, 5/20/05: We see signs of trouble in the trading pattern.

Update, 9:47am EDT, 5/20/05: Huge volume without price movement equals trader uncertainty. We are pushing 800K shares at 792,965, and the price is $0.71 while the Bid and Ask have slipped to $0.705 x $0.71.

Update, 9:44am EDT, 5/20/05: The Bid and Ask recover to $0.71 x $0.715, the price, while volume hits three-quarters of a million shares and climbs to 768,965.
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Update, 9:41am EDT, 5/20/05: Volume is 742,965 and the price remains $0.715, suggesting that a few big blocks are selling while many smaller ones are purchased.
The Ask has dropped to $0.709, and the price to $0.705, the Bid.

Update, 9:38am EDT, 5/20/05: Volume is 584,898 with the the Bid and Ask unchanged from the opening at $0.71 x $0.715. The price is $0.71.

Update, 9:35am EDT, 5/20/05: The first five minutes saw 474,400 shares trade, so look for a very, very big day, and hugely positive one. The price is at the Ask, $0.715, and it looks like someone is selling. If you're not loaded up, it's time to get ready for big, big gains, we think.

Update, 9:29am EDT, 5/20/05: 142,500 shares trade before the opening at $0.715, and in the opening seconds volume shoots up to 232,700.

Update, 9:30am EDT, 5/20/05: 71,000 shares trade before the opening at $0.70, below the Bid.

Update, 9:27am EDT, 5/20/05: The Bid is $0.71 and the Ask $0.715 as the opening bell grows closer.

Update, 9:15am EDT, 5/20/05: The Bid and Ask closed yesterday at $0.70 x $0.705, and are now at the same.