Crashent Point Energy’s joint venture with web-based Nigerian partner fails

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CALGARY, Alberta – Crashent Point Energy’s (CPE) recent foray into international oil exploration resulted in a sour deal that left CPE investors scratching their collective heads. A joint venture deal with a junior E&P company based out of Nigeria turned out to be nothing more than a trip to the beach for the intermediate Calgary-based company, and this has lead to investor shock and disbelief with a commensurate drop in the company’s share price in early morning trading.

Ted Bromance, CPE’s VP of Land, went on the record to defend his actions at a special news conference held at the Calgary Convention centre:

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Ted Bromance, VP Land

So I received an unsolicted email from a fellow PNG land professional in Nigeria who was looking for a joint-venture partner for an onshore drilling program in and around the Nigeria delta, Nigeria. I ran the idea past the President, who had mentioned a few times that he’d like to take the company international, and he liked it.

 

Considering that, and that I too am of African descent, it seemed like the right thing to do.

It turned out that it was the very wrong thing to do. According to an email that leaked from an unnamed CPE employee, the Nigerian oil company sent an unsolicited email (to a large number of recipients) that was addressed to a generic individual. 2P News reporter Diver Muffinson was able to get his hands on a copy of the email.

 

NIGERIA

After reading this convincing email, Mr. Bromance provided his contact information (all of it), and after a few correspondences, he wired the $5.7MM to Prince Dimka’s bank account, which interestingly enough, had an address in the Cayman Islands. Within a few days, Crashent Point Energy received a package in the mail containing a full development plan including the first 100 locations, and instructions for CPE to drill the first 50 wells.

The aggressive Calgary-based company, very excited to finally venture into international areas, quickly dispatched 2 rigs to the first location, only to find out that the onshore locations described by Prince Dimka and his NOPC were apparently offshore. The hand-drawn map supplied by NOPC lead the drilling rigs, crew, and two executives to a road that terminated in the Gulf of Guinea.

deadend
Dead end road in Nigeria.

Repeated attempts to reach Prince Dimka for clarification on the first location, the business deal itself, and perhaps a full refund, went unanswered. In light of this news, and the very poor capital management demonstrated by the intermediate E&P company, CPE.TO plummeted by 69% down to $4.20 at closing of trading yesterday.

But in a surprise twist to this news story, Mr. Bromance received a postcard from Prince Dimka a few months later, asking him to keep in touch. The photograph on the postcard was of the Prince shopping for his 3rd Ferarri, while taking a break from a busy day crusing around on his 200′ yacht that is fully equipped with a harem.

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