The rally Thursday and Friday that saw ERHE go from as low as $0.32 to as high as $0.50 before settling down at $0.455 may have been prompted by an article in the Penny Oil Speculator Thursday morning, a copy of which has been forwarded to ERHC On The Move. Meanwhile, Ruby1100 has taken this version from the blog and posted it on Raging Bull, but without my caveats.
The publication's URL ends with a Philippine domain abbreviation, ".ph," but has an address in a professional building adjacent to the Patriots Point Links golf course in Mt. Pleasant, South Carolina. It does not publish a disclaimer as to whether or not the authors were paid by ERHC Energy or an investor group to publish the article, as is often the case. If they are a foreign-domiciled corporation, they may not be required to post any such disclaimer. In an email from Ruby1100, a person purporting to be Chuck de Castro, the alleged author, is quoted as saying the company does not accept payments or stock from companies it writes about or their shareholders. We have no reason to believe or disbelieve that statement.
The article opens with a summary of ERHE's prospects, then goes into those in more depth after the salutation. It ends with an appeal for subscriptions, which it says are $5,000 a year. I got a phone call from a man who saw the line "They're also still scouting for drill-ships that can drill up to a mile under water in their Gulf of Guinea properties" and said he was concerned that no drilling rigs are available to prospect in the JDZ for the next three years. That seems to be a problem our partners will handle with ease come January, I told him.
Frankly, I don't think this letter was the main impetus for the rally. Whomever purchased our way back to profitability had millions of dollars to do so, and I don't think that kind of money is out there among penny oil speculators. In fact, this letter may be a diversion intended to mask a single, truly large investor's move in ERHE. I hope to buy ERHE at $0.40 around Wednesday of next week.
Penny Oil Speculator
268 West Coleman Blvd STE 2C, Mount Pleasant, SC 29464-5650 USA
Tel: 1-843-388-8470 Fax: 1-843-388-0512 US toll-free: 1-800-330-1435
Issue #291 August 18, 2005
New Recommendation:
33-cents-a-share penny oil beats out oil majors and bags the rights to drill on red-hot properties with the potential to yield $840 BILLION of oil!
ERHC is a tiny US oil company that ventured into a tiny island in the oil-rich Gulf of Guinea, offshore West Africa, years ago and bagged a jackpot: rights to drill on over 2,200 square miles of prime offshore oil exploration blocks that could yield over 14 BILLION barrels of oil -- worth $840 billion!
ERHC expects to start drilling within the next six months. And based on previous other billion barrel oilfields discovered nearby, we're positive there's a lot of oil that can be found.
Buy ERHC shares today for only 33 US cents each and I think you could make at least 506% gains in the next few years.…
Dear Subscriber,
The Gulf of Guinea, in West Africa, is one of the most prolific oil regions in the world. In fact, this area already provides 15% of US oil imports. And the US expects this to grow to 25% within the next couple of years.
Located in the Gulf of Guinea is a tiny obscure island nation called Sao Tome. A lot of the big oil companies have been eyeing the offshore blocks in this country for some time since it has the potential to hold billions of barrels of oil. In fact, located right next to this oil blocks are several billion barrel discoveries including the 1 billion barrel Akpo field, the 500 million barrel Niwwa field and the 500 million barrel Ikija oilfield.
But one little Houston based company -- ERHC Energy - has unbelievably beaten out the majors and bagged the rights to participate in drilling in all the offshore blocks in Sao Tome.
How tiny ERHC Energy beat out the majors in bagging the rights to drill on a potential 14 BILLION barrels of oil In 1997, even before huge oil deposits were discovered in the deepwaters of the region, ERHC placed their bet on Sao Tome
ERHC -- majority owned by Nigerian billionaire Sir Emekka Offor with a 35% stake -- helped the country jumpstart their oil exploration industry, which was still non-existent at that time. In return, Sao Tome gave ERHC preferential ownership rights to drill on six offshore blocks (a designated area for oil and/or gas exploration) covering over 2,200 square miles that the island-nation shared with next-door Nigeria.
As a bonus, ERHC was allowed to bid for larger stakes of the said blocks once they were auctioned-off. And best of all, ERHC would be exempt from paying signature bonuses -- an upfront fee that other companies would have to pay Sao Tome to earn the right to drill for oil-- on any four of its six offshore blocks!
Last December, Sao Tome offered offshore blocks 2, 3, 4, 5, and 6 (Exxon and Chevron already cornered block 1 the year before) for exploration and the auction attracted 23 international oil companies.
And since ERHC had the rights to drill on these properties, the company ended up owning between 15% and 65% stake on each of these 5 large oil blocks.
To be assured a piece of the highly-coveted oil properties, US oil heavyweights Pioneer Natural Resources and Noble Energy struck partnership deals with ERHC. In exchange for a share of the oil blocks, Pioneer and Noble agreed to foot all the drilling costs in their operational areas.
In June, the auction winners were announced and the ERHC/Pioneer partnership was awarded control of 65% of block 2 and 25% of block 3, while the ERHC/Noble team-up cornered 60% of block 4. ERHC also got a 15% stake in blocks 5 and 6.
With the sweetheart deal with Pioneer and Noble in place, ERHC will not spend a penny to start drilling on these properties. They can now sit back, relax, and wait for the money to come rushing in once oil starts to flow out of their properties.
And the chances of that happening are excellent! That's because the best place to hunt for oil is right beside where it's already been found.
Aside from the huge billion barrel Akpo field, and the 500 million Niwwa field discovered nearby, there are another 14 oilfields with reserves ranging from 100 million barrels to 1 billion barrels of oil discovered in and around the Gulf of Guinea in recent years.
Plus, based on available seismic surveys (sort of like an X-ray of the ground) and geological profiling done by PGS and Western Geco, two of the world's biggest and most respected oil services companies, ERHC’s offshore properties are estimated to contain 14 BILLION barrels of oil -- worth an eye-popping $840 billion at today's prices.
And yet, you could buy the company lock, stock, and barrel right now for less than $256 million. What a great bargain and that's why we want you to buy a boatload of their shares!
Buy shares of ERHC today and you could multiply your money 6-fold within the next 3 years
It's still early days for ERHC and their stock. The company and their partners are still currently working out the details of the production sharing contract with the Sao Tome JDZ government.
They're also still scouting for drill-ships that can drill up to a mile under water in their Gulf of Guinea properties. More importantly, it will cost tens of millions of dollars to drill one single well. And the first quarter of 2006 would probably be the soonest time that a well would be drilled.
These factors plus the fact that ERHC trades in the obscure Nasdaq over-the-counter-bulletin-board are the reasons why you can still buy ERHC's shares for a measly 35 US cents each.
Nevertheless, given the massive potential pay-out of their drillings coupled with the company's tiny share price, we think that now is the best time to load up on shares.
By the time they begin drilling for oil early next year, I expect more investors to start piling in to buy ERHC stock. When this happens, I expect the shares to go for $1 each -- a 200% gain from current prices.
And if they indeed discover oil in the Gulf of Guinea, it's going to be one heck of a payday for you.…
Even if ERHC discovers merely a FRACTION of that 14 billion barrel estimate - say 2 billion barrels -- the company's share of reserves could fetch $1.4 billion (or $2 a share) at a conservative buy-out price of $5 per barrel of reserves. So given ERHC's current share price of 33 US cents, that's a potential 506% gain on your investment!
That's a conservative estimate. Of course if they find more oil on their turf, then the shares could go even higher - giving you a chance to bag even higher gains.
Clearly, ERHC has got massive profit potential. So don't let this opportunity pass you by. Contact your broker now and buy shares of ERHC Energy today!
ERHC Energy trades in the US Nasdaq Over-The-Counter Bulletin Board market under the symbol ERHE. Their shares currently go for $0.33 a piece. The company's shares also trade in Berlin and Frankfurt under the symbol ERH. For more information about the company, visit their website at http://www.erhc.com/
Important note: since ERHC is still a thinly traded stock, please put in a limit order to buy shares at 38 US cents or lower.
And it's due exactly to penny stocks like ERHC that we've had to limit our subscriber base to no more than 1,000. But now, we're approaching that limit. We've sold 950 subscriptions to Penny Oil Speculator and are about to email out another letter to sell out the remaining 50 slots. After that, wanna-be penny oil subscribers will have to be put on a waiting list.
I know you have time left on your subscription and are probably not even thinking about renewing right now. But I'd hate to see you lose your slot to a wait-listed investor simply because you missed the notice or your payment got crossed in the mail.
And if you've been following our recommendations, I don't think you'd want that to happen either. Just a few weeks ago you picked up 104% and 68% profits in High Point in 4 months. And before that, we finally closed out our remaining shares in Ultra Petroleum. If you're a long-term subscriber, that bagged you up to 1,831%, 1,589%, 908% profits, depending on when you got in.
And just a month before that, you took up to 155% profits on a portion of your GeoGlobal holdings IN 4 WEEKS when they found the largest natural gas field in India!
Average profits per closed out trade (losers included): 145.4%.
That's over 7 years, 129 trades, in good markets and in bad. And the open positions add to the profits. You're up as much as 155% in TransGlobe, 98% in Transmeridian, 93% in Vaalco, and 28% in UTS Energy (in 4 weeks!).
So why not renew now while you have this reminder at hand and keep these new recos --like EHRC -- coming. That way you don't run the risk of losing your slot if you happen to be out of town when your subscription expires or miss the notice. Renew for 24 months or more and save anywhere from $1,000 to $3,000.
• 12 months: $5,000
• 24 months: $9,000 -- you save $1,000
• 36 months: $12,000 -- you save $3,000
All you have to do is pick up the phone and call Dina at 1-800-330-1435 (toll-free US and Canada) or 1-843-388-8470. We're open 'round the clock, 7 days a week.
Warm regards,
Chuck de Castro and Bob Czeschin, Editors
Penny Oil Speculator
August 18, 2005
The Penny Oil Speculator is published by the Penny Oil, Inc., 268 West Coleman Blvd. STE 2C, Mount Pleasant SC 29464-5650 USA, and in Hong Kong by Jaguar Investment Services, Ltd., and in Australia by Financial Publishing Pty. Ltd.;
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