ExxonMobil Chooses Not To Choose

One of the most-ridiculed suggestions ERHC On The Move ever made was that ultimately Exxon Mobil would not exercise its two 25- percent preferential options in the Nigeria-Sao Tome Joint Development Zone. Dozens of posters said that idea was just plain goofy, that it would never happen.

It happened today, at least according to the Dow Jones News Service.

Consistent with the long history of last-minute shocks to which traders have become accustomed, the news from Dow Jones News Service reporter Norval Scott, citing "a person close to the negotiating process," jolted the share price out of bed at the open, knocking it down by $0.059 cents to $0.6810.

By 10:38am EST, perhaps realizing that XOM's non-choice opens a greater possibility that ERHC Energy (OTC BB symbol: ERHE) will win operatorships in three of the blocks it seeks, the price was roaring back and stood at $0.715 on 1,232,000 shares of volume.

Here is the release from Norval Scott:

8 Apr 2005
12:58 GMT
DJ

ExxonMobil Turns Down More Sao Tomean Acreage - Source

LONDON (Dow Jones) -- ExxonMobil Corp. (XOM) won't be exercising its preferential rights in the Sao Tomean-Nigerian Joint Development Zone, a person close to the negotiating process told Dow Jones Newswires Friday.

ExxonMobil held rights on any two blocks from those on offer in the current JDZ current licensing round, but has chosen not to exercise these, the person said. ExxonMobil had a deadline of April 9 to decide whether to take up its rights or not.

The decision by ExxonMobil should allow the Joint Development Authority to move forward in concluding the drawn-out licensing process for the JDZ, which has been ongoing since April 2003. The licensing round closed on Dec. 15, 2004, with 26 bids from 23 companies for the five JDZ oil and gas blocks on offer being received.

ExxonMobil has already taken a 40% interest in Block 1, which is considered to have the best prospects in the JDZ and was awarded by the JDA in 2004.

-By Norval Scott, Dow Jones Newswires; +44-20-7842-9344; norval.scott@dowjones.com

It was yet another stinging humiliation for SwingingK, who blithely assured investors on Wednesday that the company had already exercised its options - the third time he'd done so since last September.