re: Official Erin Energy (ERN) thread

Thanks for the guidance IG and GC, I took profits at $7ish and so I'm more than happy as I did get in around the $.44 price, wish that I had bought more.

Trying to decide if I want to get back in again or just be happy watching you guys profiting.

The real catalyst will be the impact on cash flow, and what the income statement looks like rather than improved balance sheet. Why I say this is that I ran a basic (very basic) projection going forward, and tried to determine if they have enough revenue to support Micone at least initially, before a larger player gets involved. I think the answer is yes they can. I can see them going to market for money though, which could potentially pound this down even lower. The arrangements have been made with PIC for most of this. Probably all of this.

It will be interesting to see when they announce optimized choke setting flow rate on the new well. Strangely quiet, but their pattern seems to be Monday mornings.

There was someone buying on Monday, and buying large amounts of this stock. Folks that had stops got stopped out big time. One of the things I never understood was advice to always have a stop. Bad, bad advice in my opinion, but only bad advice if one doesn't want to lose their arse.

Because you can see it.

quote:

---

Where and how?

---

It's called Level 2 and Level 3. IG has both, I believe, and I have Level 2 through the Trade Architect platform with TD Ameritrade. These services come at a price, of course. TDA charges higher trade commissions than the other brokers, and in return, their clients get better information, a few good trading platforms, and 'free' Level 2 through said platforms.

this sucks. damnit investing!

Seeking Alpha put out a new article encouraging ERN investors to be patient and recaps the past 2 years. Here's the link and summary.

LINK

Over the past two years CAMAC Energy has transformed itself into an oil and gas exploration and production company and changed its name to Erin Energy, with its main asset.
The company consolidated shares in a reverse merger, pushing it up into the institutional investing range and was recently added to the Russell Index.
The company has seen some negative publicity, but continues to deliver on its plan for developing Nigeria and exploring potential oil and gas in Ghana, The Gambia, and Kenya.

$400K daily is approximate cost of rig.. Divided by 16K BOD. On OE yet. They need to make $28 per barrel.

Certainly isn't helping Erin Energy, but it is helpful to me in acquiring more of a still risky, but undervalued company given it's potential and current cash flow.

It's below $5. No one is paying loose enough attention to realize the above.

"there are no $100 bills lying on the street" But only if those smarter than I are paying attention. And they aren't here. They weren't in the case of LTCM either. Another bailout for a bunch of guys all smarter than us. Interestingly enough, their play on Royal Dutch would have eventually paid, if they didn't tkae banker's advice and overleverage resulting in their need to liquidate at a large loss. The same situation appears here. Loosely in the valualtion to risk pricing model, and certainly in the dual listing.

But what would I know? I'm not a banker (haven't had to declare bankrutcy either. Or get a taxpayer funded bailout for stupidity). I'm just some guy from Iowa.


As another aside, if anyone thinks the bankers didn't have warning after 1998, or whenever the LTCM debacle occurred about what could, and was almost guarantees to happen in 2008, they'd be brainwashed by their banker employer, or are completely uninformed, and choose to get their information force fed to them, rather than think for themselves.

wth IG

Guns and butter baby. Guns and butter.

Erin Energy Provides Production and Operations Update

7:00 am ET July 7, 2015 (BusinessWire) Print


Erin Energy Corporation ("Erin Energy" or the "Company") (NYSE MKT:ERN) provides an update on Oyo field production and updates its offshore operations in The Gambia.

Nigeria

Erin Energy's current average production from the Oyo field is in excess of 14,200 barrels of oil equivalent per day ("boe/d") and is 94% oil. The Company is continuing further production optimization efforts on both the Oyo-7 and Oyo-8 wells.

The Oyo-7 and Oyo-8 wells are producing into the Floating Production Storage and Offloading vessel ("FPSO"), Armada Perdana, and Erin Energy has scheduled the first lifting from the FPSO for sale of at least 300,000 barrels of crude oil to occur mid-July, with a second lifting scheduled for end-July.

Segun Omidele, Senior Vice President of Exploration and Production commented: "Since becoming operator in February 2014, we are pleased with the increase in current production from an average of 1,300 boe per day in 2014 to more than 14,000 boe per day today. Drilling these two deepwater wells as 100% owner and operator is a testament of our operational abilities and we are very proud of our team. The cash flow generated by these two wells will contribute to our ongoing exploration and development efforts offshore Nigeria."

The Gambia

The necessary permits for the 3D seismic acquisition have been issued by the government of The Gambia, and the Company expects to commence the acquisition this month. Erin Energy will acquire approximately 1,500 square kilometres of 3D data over blocks A2 and A5.

Erin Energy's A2 block is on trend with the recent offshore Senegal oil discoveries, and the Company is in continued discussions with potential farm-in partners on the blocks.

Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 9 licenses across 4 countries covering an area of 43,000 square kilometres (10 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya and The Gambia, and onshore Kenya. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN. More information about Erin Energy can be found at www.erinenergy.com.