EEL

[jerpy]

Have been considering posting this up for sometime, but looked a lot of smoke and the price had been well and truly trashed. Realise some like Dr B don't believe in buying into a spike and it's just seen an 84% rise!!

 

Why? The corporate update given today (see full RNS) but this is it in brief:

 

Equator Explorationgained 11¾p to 26p after it said it was close to “farm out” deals to sell part of its rights to oil fields in Nigeria to BG Group, which would give it an extra $80 million (£40.7 million) cash, and eliminate the need to find $27 million to further exploration there.

 

http://business.timesonline.co.uk/tol/busi...icle4061528.ece

 

It would take hours to post all the events and what the mainstream B.B's are saying so best to refer to under the header on ADVFN

 

http://www.advfn.com/cmn/fbb/thread.php3?i...7&from=9068

 

The other reason is, one look at the charts would see with all issues resolved there's a long way back up the long term cliff charts and despite it's metoric rise of late, much more could finally be possible longer term.

 

Website http://www.equatorexploration.com/

 

It will probably explode tomorrow and getting in would be difficult, but interesting times ahead. Sorry i didn't post it up before, but there was an element of hot air until today, some may argue still the case, but today's update suggest's that may be changing.

 

Riggers

[jerpy]

Share did rise high very early and retraced so some no doubt unhappy. But this looks to be the key driver (as posted by someone sensible enough to look at details)

 

http://www.rigzone.com/news/article.asp?a_id=62593

 

"Prior to the grant of the Final Award, Peak had made several representations to the Company that it will be able to and intends to satisfy in full, the terms of the BSA at the latest by the middle of June 2008. With this in mind and in order not to frustrate Peak's current financing initiative, the Directors of Equator have taken the view that it would be prudent and in the interests of the Company's stakeholders to achieve settlement under the BSA before enforcing the Final Award. Although OML 122 Ltd is presently taking steps to register the Final Award in the Nigerian courts, it will however not seek to enforce its claim in the Nigerian courts until after the middle of June 2008, at which time the Company will reassess its position if settlement under the BSA is not realized".

 

Possibly suggesting an expectation of settlement? If not...... well it's all in the article and currently the 20's seem a new support level. But the picture seems to be changing.

[jerpy]

Relevant news

 

SAN FRANCISCO,

CA--(MARKET WIRE)--Jun 5, 2008 -- ERHC Energy Inc. (OTC BB:ERHE.OB - News),

a publicly traded American company with valuable oil and gas assets in the

highly prospective Gulf of Guinea off the coast of central West Africa,

discussed a block-by-block analysis of three Joint Development Zone (JDZ)

Blocks in a presentation at the RedChip Small-Cap Investor Conference in San

Francisco. WesternGeco's interpretation of seismic data estimates the

combined recoverable reserves potential of JDZ Blocks 2, 3 and 4 could total

more than 5 billion barrels of oil (P50), prior to deductions.

 

 

The report was prepared for ERHC by WesternGeco in 2003 using reservoir parameters similar

to those known from nearby fields in Nigeria and Equatorial Guinea. Since

then, it has informed the Company's decision-making and strategy.

 

 

The report estimated the following:

 

JDZ Block 2, in which ERHC has a 22 percent interest, has recoverable

reserves potential of 2.63 billion barrels.

 

D.Y.O.R

 

 

 

[jerpy]

Yet another thought out loud, love talking to myself

 

FLEX LNG Ltd, Mitsubishi Corporation and Peak Petroleum Industries Nigeria Ltd sign Heads of Agreement (HOA) for floating LNG Project offshore Nigeria Company news 2008-06-09 08:22:52

Road Town, Tortola, 9 June 2008. FLEX LNG Ltd. (Oslo OTC: FLNG) is pleased to announce that the company has signed a Heads of Agreement with Mitsubishi Corporation (Mitsubishi) and Peak Petroleum Industries Nigeria Ltd (Peak) to jointly develop and market the world's first floating liquefaction project offshore Nigeria.

 

The parties expect the project to produce 1.5 million tons of LNG per year for 15 years, with the first commercial LNG cargo planned for second half 2011.

 

 

Was posted up on the ADVFN thread, but theres more than a little suggestion it could be positive for obvious reasons......why bother if you don't have funds to pay other debts!

 

Riggers

[jerpy]

Could post today's RNS for all to decode but this proves reasonable summary. See website for RNS

 

LONDON (Thomson Financial) - Equator Exploration Ltd. said it has given Peak

Petroleum Industries Nigeria Ltd. a deadline of end July 2008 for financing the

Bilbari oil development in Nigeria.

The exploration and development oil and gas company said it is continuing to

work closely with Peak to ensure the financing required for the Bilabri

development and to satisfy the terms of the Bilabri Settlement Agreement (BSA)

is secured within the shortest time possible.

On Feb. 11, Equator Exploration said it had issued an arbitration notice to

Peak, as Peak has not yet made payments to the company towards reimbursement of

certain costs as part of the settlement agreement it had reached to take over

liabilities of Bilabri oil development.

In a statement on Wednesday, the company said it is working with Peak to put

in place definitive documentation to secure its carried interest of 5 percent in

the oil development of Bilabri and its 12.5 percent paying interest in the gas

development of Bilabri and Owanare.

Over the past few weeks, progress has been made concerning the Bilabri oil

and gas developments as several agreements have been entered into by Peak, as

licence holder and operator of OML 122, it added.

 

 

Nice interpretation of news by the AIM market makers

[jerpy]

Another unofficial snippet found elsewhere

 

27.06.2008

 

KNOC seals drillship for Nigeria deep work

 

State-owned Korea National Oil Corporation (KNOC) has confirmed it has secured drillship Transocean Pathfinder to drill up to four wells on its deep-water blocks off Nigeria.

KNOC has fixed the vessel at a dayrate of $600,000 for a back-to-back drilling campaign, after which it will drill one well off the Ivory Coast for $630,000 per day.

 

KNOC's general manager in Nigeria, Yi Jin Seok, said the first probe will spud in the third quarter of 2009 a year later than originally planned targeting prospects in OPLs 321 and 323 off Lagos.

 

No verification on KNOC website, but will watch for that.

 

http://www.knoc.co.kr/

 

Significance? Dominant partner D.Y.O.R.......but a deepwater drillship, now if true, they don't come along easily as i'm sure many know.

[jerpy]

Not the RNS some would have expected Some will panic, some will wait patient, but either way it will only change when sorted.

 

30/06/2008 09:30

 

TEMPORARY SUSPENSION OF TRADING ON AIM

 

EQUATOR EXPLORATION LIMITED

 

At the request of the company trading on AIM for the under-mentioned securities has been temporarily suspended from 30/06/2008 09:30 pending publication of the company's annual report and accounts.

 

Time to let these sleep until resolved.

 

Riggers

 

[jerpy]

Whilst waiting for whatever the re-list in this company brings here's an interesting snippet from Oilbarrel.

 

"Things have not been great at Equator in the past year or so after it failed to get its Nigerian Bilabri project off the ground amid squabbles over financing with indigenous partner Peak Petroleum. The company could certainly do with some better news from the JDZ area where it maintains a fair sized 9% stake in Block 2, which is operated by Chinese state energy giant Sinopec.

 

Whether Equator gets to realise any of the benefits of its acreage position though is open to question. In a recent update it said that it was looking to monetise all or part of its interests in JDZ Block 2 and also in the company’s two option blocks in Sao Tome & Principe’s Exclusive Economic Zone.

 

Interest from potential suitors should be high, with the JDZ once again coming into focus for drillers. Nonetheless, Equator may still stand to benefit should any more discoveries be made in the area, deal or no deal".

 

http://www.oilbarrel.com/home.html

 

The article concludes with the following

 

"Though little-explored, the JDZ area backs onto Nigeria’s own hugely prospective deepwater territory, which has already yielded multiple discoveries. Equator’s Block 2 is adjacent to Nigerian Block OML 130 which hosts the Akpo field, with reserves of 800 million barrels of oil and 4 trillion cubic feet of gas. In 2006, another large state Chinese group, CNOOC, paid US$2.68 billion for a 45% interest in the block.

 

Equator currently expects exploratory drilling to commence on its deepwater Nigerian Blocks, OPL 321 and OPL 323, late in 2009, and on JDZ Block 2 in 2010.

 

If the results of the first well in Block 1 are anything to go by it could be an exciting period ahead for those with a stake in the area. The Obo-1 discovery – the first ever JDZ well, in 1,720 metres of water – identified 150 feet of net pay, Chevron said. The block is located 200 km south of Port Harcourt in Nigeria and 300 km north of the city of Sao Tome. Though the US super major has not provided any reserve estimates since the find, media speculation has referred to a 1 billion barrels discovery.

 

Any ownership of this size discovery – whether it be 4.41% or 9% - is big news. The start of drilling work on Block 4 in late 2008 could again build interest in the JDZ and possibly add a little extra oomph to those minority partners in need of a lift".

 

 

Would love some of that oomph

 

 

[jerpy]

Key update in brief EEL "has agreed with BW Peace Ltd., a subsidiary of BW Offshore AS, to settle all outstanding amounts from the termination of a contract for a floating production, storage and offloading vessel (FPSO) for the Bilabri oil development, offshore Nigeria. As the settlement agreement has become unconditional, the contingent liability of $52 million for early termination is reduced by $10 million. Also, if payment is made before Dec. 31, 2008, there will be a further reduction of $12 million, resulting in a net settlement of $30 million plus interest.

 

The company also said it will publish the 2007 annual report and accounts as soon as the financial statements are approved and expects its shares, which were suspended from trading at the end of June, to resume trading"

 

 

The latter part just may yet represent another buying opportunity without further news....watching, waiting D.Y.O.R etc

[jerpy]

Snippet whilst EEL suspension continues. From yesterdays RNS

 

"President of Nigeria to void the allocation of the blocks to KNOC

and to restore the status of the ONGC Consortium as the winning bidder, subject

to their payment in full of the US$485 million signature bonus within 60 days of

6 January 2009.KNOC and ONGC have confirmed to the Company that they have

received letters from the Ministry of Energy to this effect. We understand that

the basis of the decision is the non-payment by KNOC of the signature bonus

offered by the winning bidder in full and that the portion of the signature

bonus paid by KNOC will be refunded forthwith".

 

 

As stated above, Equator did pay its portion of the signature bonuses in full.

Equator has received verbal assurances from the Ministry that its participating

interest in the two PSCs is unaffected by the decision to void KNOC's allocation

but to date has received no direct written communication".

 

Other issues such as Peak well on the back burner these last few months.