ERHC Energy Inc (ERHE)

[Krombacher]

So Tullow came and looked at our block 11A *AFTER* Cepsa had already signed on.

hmmmm....maybe the conversation went like this:

Tullow: we are salivating over this block in 11A.

CEPSA: we are salivating too...there's so much oil we will need a ton of manpower...we need OUT of the Swala block.

Tullow: hey, how about we cut some kind of deal. Maybe we pay your obligation that you owe to Swala in exchange for some goodies in 11A.

CEPSA: sure, we'll give you some goodies...but we also want some additional goodies from you. Like, can you work your magic and identify the right spot to drill?

Tullow: Sure we can. No problemo. So do we have a deal?

CEPSA: you betchya...what do you need from us.

Tullow: well, we would need to do a preliminary check...like say an EIA on the area. If all pans out, we do this deal.

CEPSA: well, that EIA you did back in April panned out nicely. So time to execute the deal.

Tullow: absolutely. Let's see if we can get Kenya to agree to this arrangement.

Kenya: This is going to take some time given the complexity. We must review CEPSA leaving Swala, Tullow joining with ERHC, etc., etc. Looks like there are no endangered species of goats there based on the EIA...so give us a fortnight...and we'll have your answer.

Krombacher