Amities . l have been discreetly buying this stock since it was 39p . And the more i learn the bolder are the positions i take . .....Floated in Dec 2004 it was oversubscribed and before costs the required $15 million was raised. At the helm is ex BP head of Global exploration and Resavoir management . Furthermore a success story at Global Expo . Now Nick Johnstone wants to set up on his own . And after speaking to him l am not at all surprised . He is like a "Who s Who " of the hydrocarbon world ...He has ALL the prerequisites for success so why work for some other lackey ! .. namely connections from his ertwhistle employers . He has assembled a first class management team from ex colleauges at BP ; and is his business model is simple . AFR farms in on "Big Oils " inception upstream ; and with its scale of economy it works closely with "Big oils" fields on the look out for excellent workovers oppertunities .... Already lt has via a complicated j/v a percentage of the Sao Tome and Principe acreage -Located between the oil rich waters of Nigeria and those of Sao Tome and operated by Texaco / Chevron and Esso; and believed by many to be the new North sea . . 3D Seismic testing and magnetic graphic imagery and satellite imaging has located a labyrinth of channels leading to a main resavoir which is believed to14-15 mmbbls of oil and which would leave AFR with its share of 120/140 million barrels for NO cash outlay .To ensure early cash generation Afren has entered into a production sharing agreement in the developed Ogedeh field { adjacent to the BP operated Olowi marin field which is believed to yield 180 mmbbloe. Furthernore AFR has agreed to drill the lbekelia project for Ascent resources which is expected to produce 2,500 b/pdoe to satisfy AFR percentile share ,ln addition it is a believed resouce of several years . .. , .Not a bad start for a company with little more than six months in the making . ....and well worthy of investigation !! .....@+ J

INTERESTING ARTICLE....( from js blogg )

Wednesday, April 26, 2006
Block 1 Find 'Gigantic,' Doc Says; Chinese Take Stake In ERHC

In a major development, the reliable African source known as Doc has revealed exclusively to ERHC On The Move - in a post we did not see for a day after it was sent - that the Block 1 find by Chevron in the Nigeria-Sao Tome and Princiope Joint Development Zone is of "gigantic" proportions and large enough to transform the African economy.

Moreover, he says, he learned yesterday morning just after midnight that an unnamed Chinese firm is taking a stake in ERHC Energy, Inc.'s overall Gulf of Guinea positions, and that the deal in the works is likely to make Sir Emeka Offor "the richest man in Africa."....
.....

CVX drilling at the edge of block 1 only revealed the "tip of the oil iceberg". Those in-the-know in Nigeria are now 99% sure that the Gulf of Guinea is a mammoth O&G discovery that will bring decades of unprecedented revenues to the region. This gigantic structure will mostlikely keep oil companies busy in all blocks for a very long time! Just two hours ago (about 7 AM your time this 25 April) I also learned something which I thought I would pass on. This comes from a *very* trusted source of mine who is intimately familiar with ERHC Energy and the Offor clan and says: "A major Chinese oil company is taking a stake in ERHE and in its very large rights in the JDZ. I believe Chief Offor now is or will soon be the richest man in Africa."

My contact already took a huge risk as the clan has imposed total secrecy, I cannot ask more at this time. As you know I have excellent connections in China, but they are not in the oil industry. It is always wise to obtain confirmation from another source so perhaps you or your blog readers could use their China contacts?

In the Spirit of Respect and Friendship,

Doc

Amities / News in "The lndian Daily" that the Chevron operated JDZ#1 well could be as high as 8 billion bpoe. Be it l billion or eight it looks a monster

Doc - Amities - Read some of your errudite posts . lmpressed. lndeed Chinas State owned oil company has been offered first refusal on 4 blocks offshore in the shallow to semi deep waters of Nigeria .lt is also involved in JDZ #2 at Sao Tome Surrounded by some of the biggest oil strikes this past 10 years these prospects are expected to be highly prolific. For which in exchange China have agreed to spend $4 billion on Nigerias petrochemical infrastructure including repairs to a Refinery at J . and to complete anumber of civil engineering projects like good roads and bridges And that $4 billion dollars is merely for first refusal ,,,,The mind absolutely boggles at the price of expo rights . l am painfully aware and utterly convinced of the concept of " Peak oil" but being in Port Harcourt you would never believe it . ,,,A generation ago , l am told it was a sleepy oil town ...Now it is a hive of activity with oil and LNG projects of EVERY player in "Big Oil " in town . The entire city for the first time is beggining to feel the benefits of Nigerias oil industry ,Hopefully next -the delta. .......As for Afren i am "all in " on this . More than fag packet calculations allow me to arrive at a fair and true value of ,,,,, well their 4.5% holding in the oil leg and gas reavoir of Chevron#1 is worth perhaps up to $3.2 billion Work it out yourselves .....And thats not even counting thier own projects expected to be producing 17-18,000 bpoe p/d by the 4th quater of 2007 ....This is HUGE !!!! .....Absolutely effffing huge. Strong support level @ around 80p . lt should be nearer 800p !!!! ....At this price it is as much a defensive play as much as an agressive one .....l sold a share i have held since the mid 30s in JKX but sold half of them to finance a shedful of AFR .....By comparison JKX suddenly look startlingly expensive . No sentimentalism but JKX has been a great ride for me @+ J

From Oil barrel EEL article today,

Block 2 isnt as exciting as Block 1, which lies directly south of the giant Akpo field. About half of Block 2 lies on the same trend as Block 1 but the other half lies in the more geologically complex frontal toe thrust zone. Even so, this project has real company-making potential and is quite a coup for a company of Equators size (although investors looking for exposure to the JDZ may well be tempted by fellow AIM explorer Afren plc, which has a small stake in Block 1).

"Tuesday, May 02, 2006

National Public Radio Notes Chevron Block 1 Find; CVX Conference Call Coming?
National Public Radio has a story out on the global search for oil this morning, and the very first words out of the narrator's mouth concern a billion-barrel find by Chevron at its Obo-1 well in Block 1 of the Nigeria-Sao Tiome and Principe Joint Development Zone.

You can hear it at: http://www.npr.org/templates/story/story.php?storyId=5374852

We hear that a conference call from Chevron on the find is now in the works. No date or time info, though"

unlike EEL ......
AFR sp is holding nicely above 25 DMA and well above 200 MDA ..... trend line is still gently upwards, so worth considering

unlike EEL ......
AFR sp is holding nicely above 25 DMA and well above 200 MDA ..... trend line is still gently upwards, so worth considering

However, there seems no immediate hurry to rush in, unless you have great faith in this company and do not believe there will be a better/cheaper opportunity ......

"Afren PLC, an independent oil and gas company, said it is targeting first oil production in the second half of 2007 and aims to produce 15,000-20,000 barrels of oil per day by the end of that year."

...Amities Cynic , Roly et al : AFR is merely awaiting for the operator -namely Chevron - to announce what are excellent results from well. NO JDZ#1 . .My connections inform me they wont dissappoint and i am of the opinion AFR s coffers will increase by hundreds of millions of dollars on the back of this strike ALONE Perhaps billions . Perhaps lt came on a sidewind, l agree, but it provides instant cash generation to help finance thier own top notch prospects ..Unlike cynic i am convinced that following a period of number crunching once the assayal by Woods and Mckenzie hits the public domain reg JDZ '1 the fact of how little is factored into this current 8op s/p . ,,To me ; an s/p of 80p for AFR is both farcical and soon to be history .{ lt is for me one of those "special stocks " you refered to earliar ,,Undoubtadly AFR is trading @ a vast discount to its market peers . . ,,,Plus a board with the likes of the ex head of OPEC and leading lights from Shell, BP, and and a plethora of ex " Big oil " players is a very rare thing esoecially when coupled with acreage in prospects believed to the most fruitful on the planet. ...{For the record and to avoid an accusation of ramping i am heavily overweight . ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,As for EEL . NEVER a falling knife . Merely a combination of profit taking and mms vigourously shaking the the trees .l have seen them do it to amuse them selves; but yesterday was different Yesterday despite a ratio of buys outstripping sells by 3~ 2 EEL lost in excess of 50p p/s -a tendancy which continued of inception of trading today . Trading was so absurd at one point it lost 7p on the " bid " on a trade of less than 1000 shares and shed 50p in less than half a million stock traded . ...Obvious mm expolitation .Rather than making a market they are forcing the issue and spooking small holders whle principals stand aside and mop them up . 90% of the sells yesterday and esp today are small to low/ medium.{ below 10,000 } Buys are appreiably larger { 100,000+ } ..l was back in again today @ 225p beeeeegtime ...Thier ia NO negative news reg EEL to justify such movement so whats going on ? . ..MMs are like squirrels; and i am convinced they are collecting these shares for a later date in which the the the battle will be either won or lost .....They are collecting . As for your chart conclusions i happen to disagree Cyn ( with both respect and without wishing to sound arrogant , l think EEL will be back to its 320/380 parameter very very shortly . lts always been a volatile sod ; and twice i have chased it over40p in a single day . ..On a note of more seriousness how many companies in hostile enronments do you know that have the millitary support of USA afforded them to protect their indirect and direct interests ? Geopolitics aside . l inform the thread i am very overweight in EEL also .. ( but bought at 180/309 levels ....And now again @236 .... .....,,bien amicalment faires attention bonne chance .......................a'bientot @+ J

And how many companies would actually relish the support of Uncle Sam, especially in Iraq? ..... lol!

On a more serious note, though what you say about all good news (so far) from EEL, it is often market sentiment that drives sp rather than logic ..... it just looked to me that EEL may well have been overpriced at 350+ (from memory) and merely supported by very speccy traders .... these guys are now probably being squeezed out ..... Whether sp will then recover speedily and significantly remains to be seen

"c'est creve ou marche "

What does this mean?

don't know; did not see text with context ...... perhaps like Shit or Bust! ..... French - please enlighten, including literal meaning

TFC - savez-vous ou l'avez-vous orthographifaux? Dolpour aller outre de la matie, voulez juste savoir quelques choses.

"....et dignes bons de la recherche.........."

Corrigent!

Cynic. Alors ! CA suffit tu branleur ! ! c'est n' impotuoi ! Merde .Conneries-pur et simple J'ai trop de choses en tete en ce moment .Pensez-Y...(rires ) . Je suis tres occupe ! ca ne vaut pas le peine d'y penser...Qu'est -ce vous voullez dire pas la !! Comme on peut se tromper . Un bon conseil - Oui. Tu es raison a mefiez-vous des appearances mais je suis vrai de la tete aux pieds As for others on the thread the phrase "c'est creve ou marche " was not literal and used as in " lts Sink or Swim " or as cynic says "shit or bust" but without the kamikaze interpolation such a phrase invites . Ln addition with the word marche also meaning market there was a pun...... Aww sod it lol @+ J

TFC

LOL

Very good

Thank you.

Frenchy ..... you flatter me by conversing to me in your native tongue! ..... though i speak reasonable conversational French, and am ace with restaurants + food + even fish (a tricky one that), when discussing business, I revert to English ..... A client of ours once memorably said, "Let's continue in English for then we will both be able to understand what you are trying to say!" ...... by the way, I assume un branleur = a stirrer or trouble-maker

cynic - I started that, sorry.

I wanted to test the poster a little, as I thought I recognised the style, now I am not too sure.

The reason for the test is that we have seen stocks that can't lose before, (LGB and EVS for instance), and unfortunately I have seen quite a few lose quite a lot.

AFR has a bit more in the basket than those obviously, but the sp has doubled on speculation that has not yet been backed up by the Company, or any other Company for that matter.

So, it don't hurt to ask questions imo.

doesn't worry me one way or the other :) ....... i am always chary of any statement that claims share X is a cast iron certainty to rocket ...... often it is like ELP (my fave whipping boy!), but just occasionally there is some sense as with VOG (other now-defunct board) ..... and actually, I wait with somewhat bated breath on the end result with EME

Please go to EME thread

Cynic, I have to get you to a French-English dictionary so you can look up "branleur" - you're close, but not close enough!!

AFR currently looking bargainous if what Shares Mag said this week is correct about 15 - 20k bpd by end 2007 is correct. Gotta do some more research and will throw in my deux centimes' worth when I have done so.

Looking even better at the current price of just over 60p, with upcoming development drilling and possibly very positive exploration results. Any takers?

EDIT: ECL's report on the scope of Block 1 makes for very encouraging reading. It is based on very conservative oil prices, using a range of estimates between $25 and $40 and still makes a convincing case for the commerciality of Block 1, should hydrocarbons be discovered.

Download the PDF here.