ExxonMobil Meets Today With JDA On Block Choices
ExxonMobil meets at 9am Nigerian time (+5 US EST) in Abuja this morning to discuss and perhaps put forward its two 25-percent preferential choices in any of five blocks offered in the Nigeria-Sao Tome Joint Development Zone, a spokesman for the Joint Development Authority told Raging Bull ERHE message board poster orangeandwhite0 Tuesday.
With another meeting scheduled for Thursday at 10am Abuja time, the choices will be the trigger for a meeting of the Joint Ministerial Council and the announcement of awards, according to JDA spokesman Sam Dimka.
ExxonMobil was given 30 days to declare its choices in a letter from the JDA in late February, and that period ends on or about March 18. There is considerably less doubt this time around that further delays will occur, and the possibility remains open that the announcements could come as early as Friday or over the weekend.
Signs that the meetings have also encouraged investors came in Tuesday's trading, where the share price of ERHC Energy (OTC BB symbol: ERHE) moved up $0.02, a gain of $2,460 for the ERHC On The Move portfolio of 123,040 shares.
Volume, however, while well ahead of the hiostorice 495,000 daily average, was well off last week's pace, failing to top 1.5 million. The stock closed at its high of the day, $0.615. Most observers expect a gain of at least several more cents, perhaps to $0.65, tomorrow.
ExxonMobil's relationship with the JDZ was established in the 1990's, when it helped underwrite the creation of the JDZ by shooting imagery of its oil deposits in the Gulf of Guinea, and entitled the company to certain preferential rights that it has been unable to exercise until now.
ERHC Energy, the former Environmental Remediation Holding Corp., had similar rights it has already exercised in Blocks 2, 3, 4, 5 and 9, and in the Sao Tome Exclusive Economic Zone, where it can choose 100 percent of two blocks without paying a signature bonus and 15 percent of two more blocks by paying a bonus fee of 15 percent of the winning bid for those blocks. That licensing round may be delayed for up to three years, news reports have said.
The Joint Development Zone is believed to hold between 4 billion and 14 billion barrels of crude oil. As a percentage of the whole JDZ (exclusive of the EEZ), ERHE has about a 14 percent interest in the oil, or rights to about 560 million barrels at the 4 billion-barrel estimate. At Tuesday's closing crude oil spot price of $53.90 per barrel, that stake would be valued at US$30.1 billion.
With another meeting scheduled for Thursday at 10am Abuja time, the choices will be the trigger for a meeting of the Joint Ministerial Council and the announcement of awards, according to JDA spokesman Sam Dimka.
ExxonMobil was given 30 days to declare its choices in a letter from the JDA in late February, and that period ends on or about March 18. There is considerably less doubt this time around that further delays will occur, and the possibility remains open that the announcements could come as early as Friday or over the weekend.
Signs that the meetings have also encouraged investors came in Tuesday's trading, where the share price of ERHC Energy (OTC BB symbol: ERHE) moved up $0.02, a gain of $2,460 for the ERHC On The Move portfolio of 123,040 shares.
Volume, however, while well ahead of the hiostorice 495,000 daily average, was well off last week's pace, failing to top 1.5 million. The stock closed at its high of the day, $0.615. Most observers expect a gain of at least several more cents, perhaps to $0.65, tomorrow.
ExxonMobil's relationship with the JDZ was established in the 1990's, when it helped underwrite the creation of the JDZ by shooting imagery of its oil deposits in the Gulf of Guinea, and entitled the company to certain preferential rights that it has been unable to exercise until now.
ERHC Energy, the former Environmental Remediation Holding Corp., had similar rights it has already exercised in Blocks 2, 3, 4, 5 and 9, and in the Sao Tome Exclusive Economic Zone, where it can choose 100 percent of two blocks without paying a signature bonus and 15 percent of two more blocks by paying a bonus fee of 15 percent of the winning bid for those blocks. That licensing round may be delayed for up to three years, news reports have said.
The Joint Development Zone is believed to hold between 4 billion and 14 billion barrels of crude oil. As a percentage of the whole JDZ (exclusive of the EEZ), ERHE has about a 14 percent interest in the oil, or rights to about 560 million barrels at the 4 billion-barrel estimate. At Tuesday's closing crude oil spot price of $53.90 per barrel, that stake would be valued at US$30.1 billion.
posted by ...Joe Shea at 9:21 PM
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