China's Largest Oil Producer Goes For Canadian Oil Sands

Sinopec's fellow Chinese explorer, China National Petroleum Corp. (CNPC), has joined it and CNOOC in moves into hard-to-get Canadian oil sands, the Wall Street Journal reoorted today:

China CNPC Buys
Exploration Rights
To Canada Oil Sands
By SHAI OSTER
June 29, 2007 7:23 a.m.

BEIJING -- In a sign of the expanding international ambitions of China's oil companies, China National Petroleum Corp. has bought the rights to explore for oil in Canada.

The state-owned parent of Hong Kong- and New York-listed PetroChina Co., will develop an oil sands field, which is estimated to contain some two million barrels of an extremely thick, and hard-to-process form of oil called bitumen.

CNPC will join China's other two biggest oil companies, Sinopec Group and Cnooc Ltd., in investing in Canada's oil sands.

An official at CPC subsidiary China National Oil and Gas Exploration and Development Corp. confirmed that the company would explore for oil in Canada, but declined to offer any more details. According to a statement the Chinese Ministry of Commerce posted on its website Friday, officials at the Canadian province of Alberta granted the company exploration rights for 11 fields covering a total area of about 260 square kilometers in January. Financial terms were not disclosed.

...

Developing Canada's tar sands can be very costly because of the complicated process needed to pull it out of the ground and then upgrade it into something more easily refined into fuel. But the continued high level of international oil prices -- plus China's growing demand for oil -- is making them more economical to develop.

--Renya Peng in Beijing and Ellen Zhu in Shanghai contributed to this article

I'm Back In

I've just spent $4,500 on 15,000 shres of ERHE - just couldn't resist at this price!

I notice there is at least one strong buyer, too, who looks to have gone for about 170,000 shares. Trading is modest, as usual in June, and the price is off $0.02 at $0.30.

I may have to hold it a while to make money, and through some further drops if an injunction hits, but it's going to be hard to separate this stock from big cash when drilling starts late next year.

It's probably a better time to buy than most we will see - as I've said before, while I expect a climactic drop if an injunction comes down, I believe that drop will be short-lived - possibly only a matter of hours.

It would probably take the stock close to $0.22, from which it would probably rebound to $0.28 before the end of the trading day it becomes effective (i.e., if the injunctrion is announced after 4p.m., the drop would occur in after-hours and early trading the following day, and the opening would be at a very low price from which it would likely recover all but two cents or so before the day is out).

I would certainly buy on that opportunity if I have cash available that day, and I would probably try to go for 50,000 at a minimum and perhaps far more (if my wife lets me!) After all, $0.06 on the rebound with 50,000 shares is $1,500 for a day's work.

An AR Exclusive on the William Jefferson Case

I have posted an exclusive report on the informant in the Rep. William Jefferson case today on The American Reporter Website.

Joe Shea in Cuba: Castro Lives!

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Joe Shea in Cuba: Castro Lives!

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Back Home From Cuba

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I Made It To The Top!

I have been playing the CNBC Million-Dollar Stock Challenge for the last seven or eight weeks, and after a long struggle I have finally made it into the "Top 1%" of the 1.2 million players with a gain of 42 percent on my original $1 million capital.

But the unusual thing is that I made it to the top rank with the same four stocks I started out with - I never made a single trade.

So what were those magical stocks?

• 2,870 shares of CSX.
  
• 25,000 shared of Ford.
  
• 10,000 shares of Foster Wheeler.
  
• 5,000 shares of IIT (Indosat, an Indonesian satellite company I've followed all the way from $4, starting 11 years ago.
  

Had I sold at $93 when FWLT hit that number in its meteoric rise, I would be $60,000 better off - but all prices are as of the end of the day's trading, so it wouldn't have mattered. As it is, my profit has been $399,0000 as of the close of business yesterday. I've also won $23,000 in Bonus Bucks, giving me a total of $1,422,000.

Update for Shareholders: 'Plenty Of Excitement,' But Drilling Dates 'Could Change'

Update for Shareholders Issued by ERHC Energy Inc. Interim CEO

HOUSTON, TX -- (MARKET WIRE) -- April 18, 2007 -- The following update on Company activities was issued by Nicolae Luca, interim chief executive officer of ERHC Energy Inc. (OTCBB: ERHE), prior to the market opening on Wednesday, April 18, 2007.

"To ERHC Shareholders:

"I am pleased to again update the ERHC Energy family on the company's progress during the past two months.

"You may have read that ERHC's consortium partners in the Joint Development Zone (JDZ), Addax Petroleum and Sinopec Corp., have jointly secured the deepwater drill ship Aban Abraham to start exploratory drilling operations as early as mid-2008 in Blocks 2 and 4 of the JDZ. These are exciting developments for ERHC shareholders and have resulted from years of planning and preparation.

"There is plenty of excitement about the extensive exploration and appraisal program that is planned. The goal is to realize value from our asset base in the JDZ in order to have a positive impact on the Company's profitability for the benefit of its shareholders. That said, I want to continue to caution that there are many contingencies that affect operations of this nature and guidance for when exploratory drilling may commence could change. We will continue to look to the operators of each of the Blocks to make the relevant announcements when the time is right.

"A number of shareholders have asked about the status of JDZ Block 3, in which ERHC has a 15 percent carried working interest and a production sharing contract with Addax. Another oil and gas company, Anadarko, which has a 51 percent working interest, is the operator of that Block and will be the source of any updates related to drilling timelines.

"Last month, ERHC's Vice President, Technical, James Ledbetter, was in Nigeria on an intensive working tour. He had positive and productive discussions with Addax and Sinopec. He also participated in meetings of the Operating Committee and the Technical Committee for each of the Blocks in which ERHC has an interest. We remain positive about the progress being made.

"While in Nigeria, Mr. Ledbetter also participated in meetings with the Joint Development Authority to build trust and strengthen ERHC's bonds with the organization. He has also been exploring prospects in the region for ERHC and met with several parties who might have interesting opportunities for investment by ERHC. Nigeria, as many shareholders are aware, has announced it will soon auction exploration licenses for 45 offshore and onshore oil and gas blocks. In addition, marginal fields which might provide good investment for companies of ERHC's size and capacity are starting to become available. ERHC is seriously looking at all available opportunities right now and assessing them for feasibility of participation.

"The Board of Directors has appointed the national law firm of Duane Morris LLP, which is one of the 100 largest law firms in the world, as ERHC's corporate securities counsel. The Company's corporate-securities legal work had previously been handled by a local Houston firm. Going forward, Duane Morris will handle matters relating to ERHC's corporate securities, including compliance with the federal reporting requirements. Meanwhile, the law firm of Akin Gump Strauss Hauer and Feld LLP continues to interface with U.S. Department of Justice and the Securities and Exchange Commission investigators and respond to their requests for information.

"We have fully settled into our new and expanded Houston headquarters. With more than double our previous space, we are prepared for an acceleration of business operations in the months and years ahead. While the Board continues its efforts to identify the appropriate CEO and CFO, the Company remains confident in the capabilities of the interim leadership to maintain our positive momentum.

"Thank you for your continued interest and please know that everyone associated with ERHC Energy values your trust and support."


Sincerely,
Nicolae Luca
Acting Chief Executive Officer

AR News Update: Shootings at Virginia Tech

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AR NEWS update: 34 Dead, 15 Wounded In Va. Tech. Campsu Rampage

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AR News for March 28, 2007

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A-R News Update On Hong Kong Flu Passengers

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AR News for 3/26/07 - Insurers. Cheat On Long-Term Care

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$0.33 Close Marks Beginning Of Buying Spree

Given all the risks that an investment in ERHC Energy entails - and the company is frank about them in every one of its SEC filings - the risk/reward ratio reached parity Friday at $0.33, I believe. It's time for a modest buying spree to begin, and I believe investors can look forward a price in the low $0.40s very soon.

While I still plan a major investment in ERHE (OTC BB), I get antsy when I have to pay very much to buy into a stock that is facing two federal indictments for Foreign Corrupt Practices Act violations and for SEC violations that if handed down are likely to allege major fraud.

I have said on quite a few occasions that I don't believe the evidence is there to support an indictment in the bribery matter because the government of Nigeria is not cooperating in the probe; I think the SEC indictment has a better chance, since someone - probably the big players we all know - almost certainly were manipulating the stock through nominees (I don't use the term in its formal sense here) on I-Hub's ERHC Energy board and Raging Bull's ERHE board.

Anywhere between $0.28 and $0.33 is a great place to buy this stock, I believe. That takes into account my own belief that momentarily, in the event of an indictment, the share price may well fal to $0.18. But you'll hasve to have ready cash and be fast on the trigger to buy it there.

Once the indictments are handed down, if they ever are, the issues then becomes a known and manageable set of facts that will entail a finite amount of risk for the possibility of substantial reward when drilling begins in 2008. I feel like I would like to have 200,000 shares by then, but that's just a pipe dream today.

It's heartening in some ways (and I know it must be painful for some investors, who paid too much at some point) to see a decent bottom for this stock, and to be able to look forward not only to a major buying opportunity if the indictments arrive, but for a modest one now that the risk has been subtracted from the price.

A caveat, however: any investor wanting to get in for a substantial block of shares should ask themselves how long they are willing to sit on their investment, waiting for an oil strike in the Gulf of Guinea. If the same money might be used for other plays (like FSTR or CUP, if you're looking), it may not be available for a year or so.

Not To Worry...

The stock market will bounce back with unusual strength by Thursday afternoon, I believe, and the losses and turmoil that were so prevalent around the globe yesterday - and in Asian markets, today - will recede.

It's not that the global or American markets are healthy - they're all underpinned with mountains of debt that will crumble, probably soon - but that yesterday's losses have already been absorbed in China - whose stock market seems as never before to be leading the world - and the big fall on Wall Street was partly occasioned by a failure of the Dow Jones & Co. software that supports the new "hybrid" stock exchange.

Yesterday's fall took advantage of the timing of Alan Greenspan's remarks coupled to the China shakeout, as well as continuing nervousness about the ability of subprime lenders, banks and brokerage houses to stay afloat when their own risky lending practices come home to roost.

ERHC Energy may have been a microcosm with respect to the bounce we expect. It fell as low as $0.33 before buyers leapt in and took it back to $0.37. The stock at $0.33 was an irresistible temptation. However, it will probably resume its steady but very slow decline until drilling starts and the SEC/DOJ investigations come a cropper (go bust, in Aussie).

While there's no strong reason not to buy ERHE at this level if you are a long-term player, patience will probably be rewarded with a discount up to another 5 cents. I have been hoping for another shot at $0.27 shares like those that made me so much money last year.

ERHE's Grand Diagonal

  

CNN's Dramatic Encounter With MEND

In an In an extraordiary exclusive, CNN has successfully acquired videotape of Nigerian rebels in the Niger Delta region known as MEND, and it leaves little doubt that the group is a force to be reckoned with now and in the future.
The story speaks for itself:

Koinange: Big guns, big oil collide in Nigeria
POSTED: 1:54 a.m. EST, February 8, 2007
By Jeff Koinange
CNN

Editor's note: In our Behind the Scenes series, CNN correspondents share their experiences in covering news and analyze the stories behind the events. CNN Africa correspondent Jeff Koinange recently met with Nigerian militants, and here he describes what he saw and learned.

WARRI, Nigeria (CNN) -- Splashing across the murky waters of southern Nigeria in a speedboat, I suddenly found myself in one of the scariest positions of my journalistic career: masked militants firing machine guns at me and my crew.

We hit the deck, shouting, "We are press! We are press!" Eventually, the bullets stopped flying and the gunmen approached our boat, demanding to know who we were.

As I stared down the barrels of some very big guns, being held by angry young men, I began to have doubts about our trip here. (Watch menacing rebels try to intimidate CNN crew )

The waters are so dangerous in these parts that the Nigerian navy doesn't even dare patrol the region. In a word, it's a no-go zone for outsiders.

"How many times do you people come here with your cameras and nothing is done? We don't want you guys to come here again," one of the gunmen shouted.

But we weren't about to leave so easily.

I had been given permission to come to the region from the militants themselves to find out what is happening in the Niger Delta, where the well-armed militants have been fighting Nigeria's beleaguered armed forces over oil. (Read more about the militants' battle)

These guys in their intimidating black outfits and matching black ski masks looked like any army's worst nightmare. And that's exactly what they've become: Nigeria's worst nightmare.

They call themselves the Movement for the Emancipation of the Niger Delta, or MEND. They insist what they're trying to do is mend what they say is the unequal distribution from the profits Nigeria gets from its oil bonanza. (Gallery: See what the militants look like up close)

Nigeria is Africa's largest oil producer. In 2005, it was the world's sixth largest exporter of oil, but the conflict there has cut distribution by an estimated 500,000 barrels per day, the U.S. Department of Energy said in November.

Very little of the profits makes it back to Nigeria, and even less makes it down to the mangrove swamps of the Niger Delta.

As a result, MEND in recent months has escalated its struggle, kidnapping expatriate oil workers at an alarming rate (more than 30 in the last month alone), indiscriminately killing Nigerian military forces, and carrying out attacks on oil installations in the region that cut the flow of oil dramatically.

Hostages paraded before my eyes
Now, as guns pointed at me, I explained we had been given permission for them to take us to their leader. They laughed me off, saying their leader doesn't talk to anyone, especially journalists.

But they agreed to take us to one of their hideouts and show us something no Western journalist had seen: dozens of MEND militants in black dancing and chanting themselves into a trance. Some pointed their guns menacingly at us; others simply tried to intimidate us.

It was MEND military might for the whole world to see. And they told me this is just a fraction of their forces. They claimed to have more than 200,000 troops spread across an area the size of Texas. (Interactive: See where the Niger Delta is located)

As the militants danced, they displayed their latest hostages: 24 Filipino sailors captured on January 20 as their cargo ship tried to take turn into the port of Warri. (Watch the rebels show off their hostages )

It is the largest number of foreign hostages ever captured here at a single time. The Filipinos seemed dazed and confused, their nerves wearing thin as they struggled to come to terms with a fight they said they have no clue about.

The militants fired into the air. The hostages flinched. I thought there was going to be an execution in front of us -- and I'm sure the hostages thought the same thing.

'Our fight is against everybody'
After about an hour, the militants agreed to take me to their leader. They said that due to his superstitions, we could only interview him out in the middle of the creeks and they took us back out into the water.

A short while later, he appeared, accompanied by a small army of heavily armed bodyguards.

He described himself as "Major General Tamuno," the field commander of MEND. He spoke softly through the slits of his black ski mask.

"MEND is a struggle for the liberation of the Niger Delta, the most devastated and the most threatened region in the world," he said.

"Our fight is against everybody -- every institution that don't want the people of the Niger Delta to have their fair share."

I learned this militant leader has a degree in political science from a local university, but he couldn't find work after college. Many of his men are the same -- educated and frustrated.

He told me foreigners working in Nigeria's oil sector should get out now.

"We will take lives, we will destroy lives, we will crumble the economy," he said bluntly.

And with that, the interview was suddenly over.

We were escorted back out into open waters by a convoy of speedboats. As we were about to leave, one of the masked gunmen reissued his group's threats.

"If they don't listen, well, maybe Nigeria will go into pieces. We don't know how many pieces it will go into, but the federal government will not be in peace unless they listen to us," he said.

And just like that, they were off -- speedboats spluttering in the water, gunfire echoing into the crisp afternoon air and, before we'd even put down our gear, the militants were gone.

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Oil Falls, But ERHE Rises (And Falls)

ERHC Energy shares today showed strong buying support throughout most of Tuesday on low volume, but as the 3 p.m. witching hour arrived the share price fell back to where it started the day. At 3:38pm EST, volume stood at 366,354 and the last sale was $0.448, slightly below the $0.45 start.

Meanwhile, the price of oil continued to fall despite alleged threats from Iran to shut the Straits of Hormuz (attributed to "a foreign office official" in the Jerusalem Post) and the continuing issues with MEND in Nigeria. A barrel of crude for Feb. 7 delivery fell below the $54 mark to $53.88 in early trading Tuesday, but closed off just $0.35 for the day at $55.74.

A trade of 15,000 shares at $0.395 at 1:07pm EST baffled the kibitzers on the message boards, and there was no explanationfrom ADVFN, either, except that it was a standard NASDAQ trade and could not be identified as either a Buy or Sell. Buys outpaced sells 255,372 to 125,668, with 44,414 trades unidentified.

The last trade for the day went off at $0.455, a half-cent gain on the open.

'Hundreds' Of Bodies In Lagos After Latest Gas Line Explosion

A huge gasoline pipeline explosion in Nigeria's unofficial capital city, Lagos, came hours after people started collecting gas from a rupture in the line that later exploded.

Despite its immense wealth in oil and gasoline resources, Nigeria has been experiencing chronic shortages of both as those resources are exploited by mostly foreign oil companies and Nigerian politicians.

It remains one of the few countries in the world where tens of thousands of people often risk their lives to get a few quarts of gas.

Today's tragedy is yet another failure of the Nigerian government to recognize and correct its official greed and to start sharing its natural resource income with ordinary Nigerians. By all indications, it will not be the last - if the government last that long.

"Hundreds of mangled bodies" fused with one another in a grisly heap were visible in the flames, observers reported. There is no indication of when the fire will be controlled.

Here is the awful story:


Pipeline Explosion in Nigeria Kills More Than 200

By THE ASSOCIATED PRESS
Published: December 26, 2006
Filed at 7:57 a.m. ET

LAGOS, Nigeria (AP) -- At least 200 people were killed Tuesday when a gasoline pipeline exploded in Nigeria's biggest city of Lagos, a Red Cross official said. The death toll was expected to rise.

Ige Oladimeji, a senior official for the Nigerian Red Cross, said his workers had documented "over 200 and still counting."

"We can only recognize them through the skulls, the bodies are scattered over the ground," he said. Workers "can't get close enough because the fire is still burning."

Witnesses said the pipeline ruptured shortly after midnight and that people had been collecting leaking fuel in plastic cans for hours before the explosion. It wasn't clear what caused the initial rupture in the pipeline or the later explosion.

Hundreds of bodies could be seen jumbled and fused together in the raging flames at the blast site. Intense heat kept rescue workers back as smoke billowed over the heavily populated Adule Egba neighborhood.

The blast shook the neighborhood after dawn, Nigerian Red Cross spokesman Umar Mairiga said. He said 16 bodies had been taken to the morgue, but raging fires were hindering further recovery. Many people had been injured, he said.

Nigerians often tap into pipelines carrying refined fuel, scooping up the raw product in buckets or plastic bags. Spilled fuel spreading in pools sometimes ignites, immolating people nearby.

In May, more than 150 people died in a similar explosion in Lagos.

Nigeria is Africa's largest oil producer, but corruption, poor management and limited refining capacity often leave the country short of fuel for vehicles and stoves.

Shortages in recent days have prompted hours-long lines at Lagos filling stations.