The price of ERHC Energy shares jumped $0.08 shortly at the opening bell today, and it looks very possible that after years of struggle, the share price may top $1 today. Unfortunately, we are out of the stock - and wish we were not.
Update, 10:53am ET, 3/27/06: ERHE has fallen back to $0.92 x $0.926 on 2,589,409 shares of volume.
The action came as Chevron apparently prepares to announce a major oil find that has been rumored in newspapers and message boards across the globe over the weekend.
Here are two videos, from Forbes and TheStreet.com, mentioning the find; the Forbes one is better:
http://www.thestreet.com/video/marketupdates/10275720.html
http://www.forbes.com/video/?video_url=http://www.forbes.com/video/
Monday/03276a&id=m1&title=Video%3A+
Major+Africa+Oil+Find&partner=yahootix
At 9:51am ET, ERHE stood up $0.08 at $0.97 - a record high for the past five years, on volume of 1,698,820 - slightly loweer than would be expected for a jump of this magnuituide, suggesting that there is still hesitation in the markeptplace.
Part of the problem is that ERHC Energy is not the one discovering the oil. ChevronTexaco's Obo-1 test well in Block 1 of the Nigeria-Sao Tome and Principe Joint Development Zone is widely rumored to have a trike of 1 billion barrels, but there has as yet been little mention of the find straddling Block 2, where ERHC is in an operating consortium with Sinopec. And many mentions of Sinopec in Block 2 include no mention of ERHC.
Sinopec shares were falling sharply today, while Chevron was barely able to stay even and ExxonMobil, its partner in the Block 1 consortium, was also down.
Disclosure: ERHC On The Move has substantial investmentsd in Chevron, Exxon and Sinopec.
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