Some say it’s better to be lucky than good. Yes, the leg work needs to be put in place to justify an expense, but in most respects timing of that work needs to fall into place to really take advantage. Sometimes the two just happen to fall together, and when they do, profit can be made.
ERHC Energy, a natural resources company, works to discover and exploit natural gas and oil reserves primarily off the West coast of Africa. The company works in the territorial waters of Sao Tome and the Federal Republic of Nigeria with other possibilities under consideration.
As the company has rights to work within the Joint Development Zone (JDZ), in the Gulf of Guinea, it appears that reserves are fairly well assured. This is never a certainty, but given current and historic production within the zone, it does appear fairly likely. The company is currently pursuing additional positions within the JDZ but has varied interests in blocks 2, 3, 4, 5, 6 and 9. At present, the company anticipates drilling to commence at several blocks in the third quarter 2009, but possibly by July 2009. Although exploration is just that, the company seems to indicate that they are fairly sure about where they are drilling and the prospects that await. Its interests in these block’s range from 10% to approximately 20% with its partners being experienced drillers in the region.
The current credit crunch as slowed the company’s growth through acquisition program, both in the JDZ and in North America. ERHC Energy does, however, indicate that this program is in no way stalled and will continue with existing free cash as conditions and opportunity present. The company further points out that it will pursue an acquisition program that protects the parent from exposure.
In a general sense, it does appear that ERHC Energy is reaching the end of its initial development stage and is ready to begin producing solid returns. Timing also seems to be on the company’s side as oil prices reach a fairly favorable range. If there is an oil and gas company to take look at right now, this one may be it.
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