ERHC Energy Inc (ERHE)

[arnim-v-b]

Even in an $85 a barrel world, we would still expect Tullow to be able to continue to finance high-margin production growth projects in Ghana and West Africa, and at the same time add low cost resource barrels in Kenya. First gas flows from the Jubilee field are expected imminently and should allow Tullow to finally ramp up to a 120,000 barrels a day gross exit rate by year end. In addition, the historical premium placed on its exploration portfolio has dissipated, and at the current share price, this implies that investors are getting a ‘free’ option on future exploration success in Kenya ahead of a busy period of drilling. We think risk/reward is skewed to the upside and retain our buy rating.

SO GO KENYA...

http://www.theguardian.com/business/marketforceslive/2014/oct/31/tullow-oil-gains-as-analysts-say-shares-have-fallen-too-far