posted
The awards for the remaining 5 blocks from round 1 are due to be announced after the meeting of the JMC on Monday and Tuesday of next week. ERHE is expected to get operatorship in 2-3 of the blocks. Estimated reserves in the JDA are conservatively put at 14bn barrels. ERHE pps will jump with news of operatorship on some of the blocks. Already moving up in anticipation of announcements.
Posts: 434 | From: NEBRASKA | Registered: Feb 2005
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There was also a great article in the Houston Chronicle detailing the entire situation if anyone wants to dig that up...
Posts: 42 | Registered: Jan 2005
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posted
Chetg-do you suppose anyone is following this stock here. There doesn't seem to be much excitement. Maybe they either don't realize the upside potential looming next week or they don't believe it. Either way it's been posted and I'm thinking this time next week alot of people will be wishing they had looked into it a little more.
Posts: 434 | From: NEBRASKA | Registered: Feb 2005
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posted
Last year this time the bidding was out for the first 6 blocks. They announced the winner of the first block in December, and you're right in thinking that this has been long and drawn out. They should have announced all six winners in December. Now though the JMC is meeting on Monday and Tuesday with the sole purpose to finalize the final five blocks of this first round and to announce the winners for operatorship of each. Whether they will announce on Tuesday after the meeting or wait another week is anybodies guess, but that is what the meeting is for, so the announcement is forthcoming IMO. I can certainly understand why some people may be sceptical at this point because it has been so long and drawn out, however it bears watching if for no other reason than if they do announce then its off to the races to catch it. Thank you for the warning though Raptor, I hope a month or two down the road I'm not wondering why I didn't heed this warning. I've done alot of DD on this and believe that announcements are coming and that ERHE will have operatorship in 2 or 3 of the blocks at least.
Posts: 434 | From: NEBRASKA | Registered: Feb 2005
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Houston-based minnow ERHC Energy has agreed to a farm-out deal with US partners Pioneer Natural Resources and Noble Energy for two blocks for which operatorship was awarded last month in the Joint Development Zone administered by Nigeria and Sao Tome & Principe, writes Barry Morgan.
Noble partners ERHC on Block 4 while, on Block 2, Devon Energy's departure from the consortium last week left Pioneer partnering ERHC.
Meanwhile, Pioneer and ERHC also enjoy a substantial stake in Block 3, operated by Anadarko Petroleum.
In the Noble and Pioneer deals covering blocks 4 and 2 respectively, ERHC will be carried to commercial production. Noble will in return pick up 15 percentage points from ERHC's original preferential stake of 25% in Block 4, while Pioneer will pick up 15 percentage points from ERHC's original preferential stake of 30% in Block 2.
Both Noble and Pioneer, in partnership with ERHC, are understood to have almost finalised joint operating agreement and production sharing contracts for blocks 4 and 2 where they were awarded operatorship with combined stakes of 60% and 65%,
respectively.
The farm-out deals mean that ERHC could end up with 13.5% of Block 4 and 18.5% of Block 2.
In a parallel development, the Abuja-based Joint Development Authority (JDA) this week urged all the successful consortia awarded deep-water blocks in the just-concluded second licensing round to speed up talks on their respective joint operating agreements.
The JDA, along with the governments of both countries, is keen to cash in the signature bonuses and ensure exploration drilling starts this year.
JDA negotiations between the partners for blocks 2, 3, 4, 5 and 6, along with talks to conclude production sharing contracts, should run concurrently, according to a senior JDA official.
PSC talks were due to start this week.
Posts: 46 | Registered: Jun 2005
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