re: Official Erin Energy (ERN) thread

It has more to do with the time investment. This is a busy part of the year for me and I don't have the time to do real leg work, even for an amateur.

ERN still has potential but as we have seen, it is far from a sure bet and there is a lot of risk involved. It is like when your NFL team picks a "project" in the 1st RD. The talent is there but as a fan, how much do your trust your coaches to turn that talent into production?

From SEC filings/reports, ignoring potential fraud, the oil is there. How much do you trust management to be able to turn oil into money?

The 50sma is at $3.45 ERN came real close to hitting that trigger point. It had a good power hour, but I would be very cautious. Will it go back to $8, who knows. I wouldn't bet my hard earned money on that. You would be better off flipping it when it's hot.

Pissed at myself. Knew this was a P&D and didn't move, hell I haven't looked in a week. Either gotta pay attention or stop screwing with these things. 4k, down the drain.... For now

Eta: ftr that was my gains. About even now :/

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The last two days have had opening hour volumes of 400k shares each. Looks like we'll have half that today with 200k shares in the first hour. Either this is a dead cat bounce, the recovery we have been waiting for, or this is simply a break before more (short) selling. We'll know based on movement in the next few days, for better or worse.

The 5 day RSI is still below 20 so far, but today has swung it up a bit. 1, 3, and 6 month RSI are all at 30. For those who don't know what RSI is, it is a technical indicator ranging from 0-100 that tracks how (over)bought or (over)sold a stock is. People consider 20 or 30 and below oversold, and 70 or 80 and above is considered overbought. Generally, an overbought stock will soon see a price decline and selling, and vice versa for oversold. I am not a technicals guy, and RSI is the only technical I use since it is simple. Just keep in mind that stocks don't always revert to the mean RSI of 50, and just because this technical indicates we are in for a rebound soon does not necessarily mean we will go back up to $8.75.

But like I said in my last post, I think we may be done falling. People have psychological barriers about numbers, namely percentage changes in a stock price and the stock price itself. It usually takes some extra pushing to get past those barriers, and $4 seems to be that barrier. I bought a few more shares yesterday at $4.22 after my last post. I was quite scared about placing the order, but it has paid off so far.

quote:

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Erin Energy (ERN +4.4%) responds to the negative article by Cannell Capital posted nearly two weeks ago on Seeking Alpha, saying it "contains numerous factual errors, misleading speculation and unwarranted inferences."

ERN believes the article was written by a short seller to harm the company's stock price, and maintains confidence in its growth prospects.

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apparently they have contacted Seeking Alpha to get the errors corrected

They're 3 days late. Par for the course. Or maybe they play where a bogey is par.

Erin Energy Corporation ("Erin Energy" or the "Company") (NYSE MKT: ERN) announced today it has commenced production from the Oyo-7 well ("Oyo-7") located in OML 120 offshore Nigeria. Erin Energy is the operator of the Oyo field and has a 100% interest in the block.

Oyo-7 was drilled to a total depth of approximately 8,000 feet (2,438 meters) and was successfully completed horizontally in the Pliocene formation. The well is located in approximately 1,000 feet (300 meters) of water and is producing into the Floating Production Storage and Offloading vessel, Armada Perdana. Oyo-7 is expected to produce approximately 7,000 barrels of oil per day following optimization of choke size.

Segun Omidele, Senior Vice-President of Exploration and Production commented: "We are pleased that the well is performing in-line with our expectations and we will be working over the next few days to optimize the flow rate. Bringing this well on production will double our current production rate out of the Oyo field and is a significant step in the continued growth of our company."

Erin Energy drilled the Oyo-7 with two planned objectives. The primary objective was to target the Pliocene formation from which it is now producing; and the secondary objective was to test the deeper Miocene formation for hydrocarbon potential. The Oyo-7 successfully confirmed hydrocarbon in the Miocene formation, which was previously undrilled on the block. This successful test has de-risked the Miocene in Erin Energy's offshore Nigeria blocks and has provided valuable data for the Company's planned Miocene exploration program, which targets recoverable P50 resources of nearly 3 billion barrels of oil equivalent. Drilling of the Company's first Miocene exploration well is slated for 4Q 2015.

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