Addax Petroleum (fka AXC)

[midtieroil]

Dwelling on drillable prospects is just plain wrong. If Tarach turns up dry with no traces of oil that could condemn the entire basin. That dry hole result could indicate that the source rock and the migratory pathway to get oil into that basin does not exist. The other prospects in that basin wouldn't be drilled under that scenario. How do you know all 12 prospects are in that one basin? I hope that is not the case. At least that would leave the other basin with prospects to be explored.

Also, ERHC does not own the block. Kenya does. There is no indication that anybody requested to move to the next exploration period. The deadline has passed. That means Kenya can do what they want with that block.

CEPSA may work a new deal with Kenya to proceed. But why would they take a deadbeat partner who can't pay their share along. I sure wouldn't and I doubt CEPSA would either.

The award of this block to ERHC is not perpetual and it may have already lapsed. I have no faith in ERHC telling us if and when that happens.

My belief is still that the most likely cause for delay is because Kenya and CEPSA are working to dump ERHC. They bring nothing to the table and cannot and, as far as I can tell, have not lived up to their obligations under the JOA or the PSC.