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Erin Energy Corporation. JSE:ERN

Erin Energy shares

Background of Erin

  • With a history stretching back to 1991, Erin Energy Corporation (formerly CAMAC Energy) is a United States-based, independent oil and gas exploration, development and production company with operations in sub-Saharan Africa.

  • Erin shares began trading on the New York Stock Exchange in 2010 and the Johannesburg Stock Exchange (JSE) in South Africa in 2014. Today, the corporation’s asset portfolio comprises nine licenses across four countries, covering an area of 40 000 square kilometres. This includes current production and exploration projects offshore Nigeria and exploration licenses offshore Kenya, Ghana and Gambia, and onshore Kenya.

  • Commencing production in 2009, the Oyo Field in Nigeria has a capacity of 40 000 barrels of oil per day and can store 1.1 million barrels, for sale to export customers. Erin’s strategy is to explore and develop high-potential assets in Africa and buy into strategic partnerships with national oil companies, local partners and other independent oil companies. The investment portfolio and ongoing operations are actively managed by limiting capital exposure, building a strong technical and operational team with local knowledge and prioritising economic efficiency.

  • The company has a JSE market cap of R4 billion. The live online stocks chart shows a sharply declining Erin share price, due to deteriorating political and economic conditions which have struck the oil trade.

Erin Shares Growth Driver

  • Erin’s growth opportunities and operations are largely affected by political developments, laws and regulations, currency fluctuations and oil price. The regulatory burden on the oil and natural gas industry increases both the group’s cost of doing business and potential for economic loss.

  • The company and Erin share price have been heavily weighed down by the deteriorating oil price. Net losses for 2015 came in at US$451 million. Operations in Nigeria were hampered by governmental control measures, with Erin selling only 0.6 million of the 1.5 million barrels produced by the Oyo Field.

  • All of Erin’s other projects are currently in the early phases of exploration, with production not expected for several years (if a commercial discovery occurs). The company has forecast that the highly competitive market, decline in oil and gas prices and an inability to raise capital and generate cash flow may result in discounted operations in future. Majority shareholder CAMAC Holdings has historically provided most of the group’s funding, but there is no assurance that CAMAC will continue to buy into the group.

Erin Group Investor Tip

  • Erin share price has slumped from a high of R395 in 2015 to R25 a year later, with investors not looking to buy the shares. The company faces a mammoth recovery task, one which it has not voiced confidence in being able to execute in the current environment. With limited cash flow, a stalling oil price and exploration activities which aren’t gathering much momentum, Erin looks to be a slowly sinking ship, and most investors would rightly be loath to purchase Erin shares.

Erin Major Shareholders

Camac Energy Holdings, Public Investment Corporation.

  • Sector

    Energy

  • Industry

    Oil, Gas & Coal

  • Sub industry

    Exploration & Production

How to buy Erin Group Shares

  • Erin : How to buy Erin Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Erin Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Erin Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Erin Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Erin Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/erin-shares">Credits: SA Shares™</a>
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